A substantial rise in residential real estate rental charges, ranging from 20-25%, has been witnessed in Pune over the last three years, thanks to significant improvements in infrastructure, enhanced transport connectivity with the Metro, and the development of townships featuring modern amenities.
Areas such as Hinjewadi, Wakad, and Kharadi have emerged as key contributors to this surge, propelling the city average. Illustrating this trend, Kharadi resident Aditya Deshmukh shared, “In 2022, a 2-BHK semi-furnished house in Kharadi cost Rs12,000-13,000 per month. The same property now commands a monthly rent of Rs18,000.”
Real estate consultants highlight that the demand for houses in the eastern and western corridors of the city significantly outstrips the supply. Ritesh Mehta, senior director and head (west and north) of residential services and developer initiatives at JLL, reported a 40-50% rise in housing rentals in Hinjewadi over the last three years. Meanwhile, areas like Wagholi and Kharadi have witnessed a substantial increase, contributing to an overall citywide rise of about 20%.
The surge is not confined to specific zones, as residential rents in areas like NIBM Road and NIBM Road Annexe have also experienced a notable spike. Real estate agents attribute this increase to ongoing infrastructure development and the presence of a cosmopolitan and educated crowd. “Over the last five years, rents in this area have increased by about 40%,” noted Mateen Qureshi, founder of Metropedia & Co. The development of the Tribeca Highstreet on NIBM Road is identified as a significant factor contributing to the upward trajectory of rents.
Landlords, both in old and new buildings, are capitalizing on the surrounding infrastructure development, such as malls, to justify higher rents. The availability of modern amenities in new buildings, accompanied by higher maintenance charges, further contributes to the increased costs.
Real estate brokers highlight another factor driving the surge: a higher churn in residential real estate in the last one or two years. “People in the IT space, switching jobs often, are requesting shorter lock-in periods, prompting landlords to increase rents,” explained Danish Sayyed, a real estate broker.
As Pune witnesses a dynamic shift in its real estate landscape, fueled by infrastructure development and increasing demand, residents are grappling with the evolving costs of living in key city areas.
