Corridor of growth MOSHI - CHAKAN Corridor Description and Rating Areas Included: Moshi, Chakan and Chikali

Fig 1: Map of the corridor 02 Corridor of growth (COG)

About the Corridor Introduction: The Chakan, Moshi strategically located along the and accounts for a major share (40%- and Chikali Corridor represents the - Highway and between 45%) of projects launched in the peripheral residential market of Pune two established industrial hubs – affordable section as per Pune’s price situated towards the north along Chakan to the north and levels. and off the Pune-Nashik Highway. Of MIDC Estate to the south. Demand In Chakan, 65% supply is in the Rs these three localities which form the from the southward direction is for 20-40 lakh price bracket followed corridor, Moshi and Chikali form part relatively affordable options as prices by the sub-Rs 20 lakh segment. The of the Pimpri- Municipal in Bhosari and other areas around it 2BHK is the dominant format forming Corporation (PCMC) while Chakan are higher than Moshi. Demand from 50% of the supply. There is significant falls outside its limit. Chikali is located north (Chakan) is for options in the supply of 1BHK format as well. It has to the east of Moshi while Chakan established part of Pune outside the 47% share of supply. The average size is located to the north across the industrial hub. Moshi also has many of apartments is also smaller with the . small scale industries across a couple 1BHK formats being close to 600 sq ft of industrial land use pockets. Chakan is an established industrial and the 2BHK formats being close to hub with a presence of major Chikali is situated to the east of 1000 sq ft. national and international brands Moshi and is connected to it through The average price range in Chakan is in the automobile and ancillary the - Road. Residential Rs 3,300-3,500 per sq ft. Consumer segments like Volkswagen, Mercedes development in Chikali is a spill-over preference in Chakan mirrors the Benz, Mahindra & Mahindra and of demand from the industrial area supply with 60%+ demand being Bridgestone . There are more to the south and development is in Rs 20-40 lakh segment. The 2BHK than 750 big and small industrial units happening in Moshi. is the preferred format followed by in Chakan. Industrial Development Pattern: Development 1BHK units. Development Corporation (MIDC) has in Chakan is spread across a large acquired further 1400+ acre land for Moshi also has similar demand and area. Two main development corridors setting up Phase-2 of the industrial supply characteristics. It was noted within Chakan are the Pune-Nashik estate in Chakan. It has received good that 64% supply and 77% consumer Highway in the north-south direction response from the industry for leasing preference is in the Rs 20-40 lakh price and Talegaon-Chakan Road in the of land and facilities in this phase. bracket. However, supply in the Rs east-west direction. Projects are 40-60 lakh segment is comparatively The locality is home to sizeable widely spaced and not localized in a much higher than in Chakan. While blue-collar and white collar work- particular area. demand is less than supply, it is still force which is employed directly In case of Moshi, development is higher in percentage terms than the or indirectly in these industries. along the Pune-Nashik Highway, corresponding demand in Chakan. Residential and commercial Dehu-Alandi Road and along a sector developments have taken place in the The average price range in Moshi is road going west from the highway locality to cater to the purchase and Rs 4,000-4,400 per sq ft. The 2BHK and connecting to the Spine Road. rental demand from this segment. segment again dominates supply with Consequently, the locality has seen lot Bhosari Road and Chikali Road are the 55% share. However, consumers have of urbanization over the last couple of two centres of development in case of higher preference for 1BHK segment years. Chikali. (53%) as compared to the 2BHK format (43%). Moshi is the last locality of the Pimpri- Present Scenario: This corridor Chinchwad Municipal Corporation has been the center of development In case of Chikali as well, most of (PCMC) towards the north. It is activity for the past couple of years the supply is in the Rs 20-40 lakh 04 Corridor of growth (COG)

bracket. Supply and demand in terms exists in all the three localities of Therefore, this will remain a price of BHK format also follows the same the corridor. Chakan is more self- sensitive market and scope of major pattern. Apartments of 2BHK form sustaining than the other localities price gains is low. Reason being, if 69% of supply and 77% of consumer and has facilities required to meet the the prices rise too high and too fast, preference. need of the socio-economic profile the real estate will go out of the of its population, though schools are affordability of its main demand The average price range in Chikali is Rs available in limited numbers. segment. 4,000-4,300 per sq ft. Outlook: Considerable development There is a possibility that the new Both supply and demand parameters activity has taken place in the corridor International Airport in Pune might highlight the affordable nature of over the last two years. Given the come up in a location towards the the real estate in this locality of the slow market conditions, there is north-west of Chakan in the general corridor. unsold stock in the market. This will area of the Bhama-Askhed Dam. Amongst the three localities, Moshi take some time to clear. Further, the Once in operation this will help in has seen relatively better price gain of market has evolved against demand improving the connectivity. 17% over the last two years. Whereas, from blue-collar workforce. The If this happens, it will lead to Chakan and Chikali witnessed an price purchasing power of white-collar up-gradation of infrastructure as increment of 5% and 9% respectively, workers employed in the industrial connectivity to Pune city and airport is between March 2014 to March 2016 sector would also be on the lower side improved. However, there is no clarity and cannot be compared with those Social Infrastructure: Social on the way forward at present on this in other sectors like IT/ITES or BFSI infrastructure in the form of support aspect. retail and primary healthcare facilities sectors (Banking, Financial Services or Insurance).

Overall Connectivity Social Infrastructure Security/Water

Properties available in the corridor he corridor represents the affordable smaller share of Rs 40-60 lakh price bracket. demand drivers for the residential segment. housing market of Pune and this is Chakan, Moshi and the area to the south of However, the purchasing power of these Treflected in the distribution of supply Moshi forms an industrial belt with a large industrial employees is less as compared to by budget segments. Most of the supply is in number of industries. Employees working those in the IT/ITES sector. This is the reason Rs 20-40 lakh segment followed by a much in the industries in this belt are the main why most of the supply is in the lower budget

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration 03 Corridor of growth (COG)

Table 1: Sizes and prices of flats available for segment. The relatively much less supply in as consumer preference. More than 50% of various room configurations the Rs 40-60 lakh or Rs 60-80 lakh is aimed at the 2BHK supply is in the 800-1200 sq ft area Sales Price Covered Area the blue collar workforce in these industries or bracket with 70% of them being in the ( Lacs) (Sq.ft) the trading segment in the corridor. Rs 20-40 lakh range. Units of 1BHK also have 1 BHK 13.5-40 550-700 a large share of supply with most of it being The corridor has seen considerable amount in the 550-700 sq ft area range. In terms of 2 BHK 21-65 800-1200 of construction activity and large number of prices, 97% of the 1BHK supply is in the 3 BHK 40-75 1150-1520 ready-to-move-in properties are available. The Rs 20-40 lakh price segment. 4 BHK and Above 75-125 1450-2000 2BHK format dominates both supply as well Best sectors to invest in a home Based on rental demand in sectors

Fig 5: Top localities by consumer for renting a house oshi is centrally located within the makes it an ideal destination for consumers people working within Chakan. Demand in corridor. It has good connectivity to looking for rental options in the corridor. Chikali emanates from consumers looking for MChakan to its north and Chikali to its They can commute to Chakan or other nearby residential options close to the industrial belt west. It is also well connected to other major areas for work from Moshi. Chakan being a to its south. localities in Pimpri-Chinchwad or Pune. This major industrial belt, derives demand from Based on home buying demand in sectors

Fig 6: Top localities by consumer for buying a house 04 Corridor of growth (COG)

nalysis of consumer preference for Break-up of consumer preference by budget price bracket. More than four times consumers buying shows that Chikali is the most segment shows that in the sub-Rs 20 lakh and are looking for properties in the Rs 40-60 lakh Apreferred locality within the corridor Rs 20-40 lakh price segments, the share of budget in Chikali as compared to Moshi. with 47% share. Moshi comes second with consumer preference is almost the same. The 36% share of consumer preference for buying. main difference comes in the Rs 40-60 lakh Best bedroom configurations to buy Preferred buying and renting options

Table 2: Demand distribution for buying and renting ost consumers prefer 2BHK formats on the lower side. About 65% of consumer Buying Renting when looking for a residential option preference in the 2BHK segment is in the Rs Total (BHKs) Total (BHKs) Mfor rent or from a house purchase 20-40 lakh segment followed by the Rs 40-60 1 BHK 38% 38% perspective. It has more than 50% share of lakh bracket with 22% share. More than 70% 2 BHK 57% 53% consumer preference in both these segments. of 2BHK availability is in the 850-1150 sq ft The corridor being a price sensitive market, range. This gives flexibility to consumers to 3 BHK 5% 8% relatively smaller size of 2BHK apartments choose an option as per their budget. 4 BHK and Above 0% 1% helps a buyer to keep the overall purchase cost Price changes and future prospects Historic Price movement Table 3: Historical Price changes

6 monthly change Yearly change -3% 5% oshi-Chakan represents the affordable housing corridor of Pune. The demand Mdriver here is the work-force employed various industrial units in the corridor. The purchasing power of this buyer segment is limited because of their income level. Therefore, price level in such corridors is unlikely to see drastic increments. This aspect is reflected in the long term price trend in the corridor. The market condition is weak at present and this has further subdued the price movement. This situation will persist for some time as the corridor has seen considerable supply in last couple of years. It will take time for market to exhaust this supply to reach required demand- supply balance. Fig 7: Historical Price changes of corridor 05 Corridor of growth (COG)

Price movement for top localities by Consumer Preference he quarterly price change in each of the localities in the corridor reflects the overall scenario in the corridor. The price change has Thappened over a narrow range from +2% to -2% with average increment being -1%. Chakan and Chikali have seen price drop while Moshi has seen increment of 2%. The long terms price trend has been of marginal increments with a few price drops. Current price change is in line with general trend in the market. Over next 4-5 quarters, the price trend is expected to be stable with only marginal increment. Both Moshi and Chikali also serve demand outside of industrial workforce. Some projects therein might see higher price movement. Fig 8: Price changes in top localities by consumer demand

Infrastructure Updates Chakan Industrial Estate – Phase 2 Dehu-Alandi Road to Kalewadi BRTS Pune International Exhibition and Convention Centre Maharashtra Industrial Development A 10.2-km Bus Rapid Transit System (BRTS) Corporation (MIDC) has acquired a further is under construction which will connect The PCNTDA is in the process of developing a 1400+ acre land for setting up Phase-2 of the Kalewadi Phata on the Aundh-Ravet Road world class exhibition and convention center at industrial estate in Chakan. It has received with the Dehu-Alandi Road via Kudalwadi. This Moshi along the Pune-Nashik Highway. Pune good response from the industry for leasing of will improve connectivity and accessibility of Metropolitan Development Authority is likely land and facilities in this phase Chikali to other parts of Pimpri-Chinchwad to take over the development of this project.

Master Plan oshi and Chikali fall under the Pimpri- this limit. Parts of Moshi and Chikali fall under This authority is responsible for planned Chinchwad Municipal Corporation the purview of the Pimpri-Chinchwad New development of peri-urban areas of PCMC M(PCMC) area while Chakan is outside Town Development Authority (PCNTDA). 06 Corridor of growth (COG)

IN NEWS Where to buy small, affordable apartments in Pune Increased supply of independent houses in North Pune Along with flourishing retail and hospitality segments, property The home buyers in Pune are more inclined towards luxury market is witnessing an increased activity. Chikhali and Rahatni properties. There are consumers who prefer living in spacious and localities are witnessing maximum supply of smaller units. independent property types such as bungalows, independent There is a maximum supply of 1BHK and 2BHK units in both the houses, and villas. To meet these desires, several home buyers are two localities. Rentals at both, Chikhali and Rahatni, are lower selecting locations in North Pune such as Chinchwad, Akurdi and in comparison to some of the developed areas of Pune such . These not only suit their budgets but also offer as Hinjewadi and . Most of the people buying convenient access to the main city. Chinchwad is an established apartments in the area are mid-level professionals. Obviously, they commercial area of Pune. With new companies setting their cannot avail home loans for larger sums. There is still scope for offices here, there is a scope for developing good business. The many developers to bring and launch their projects in Chikhali and connectivity through the -Pune Highway is an advantage. Rahatni areas. Such properties can be looked out in the areas like Chinchwad, Akrudi and Talegaon Dhabhade. n Source: n Source: Magicbricks Bureau A 1BHK in Pune for Rs 5L? It’s possible! Moshi offers many options for home buyers The government has observed that there is a requirement of 25 lakh affordable houses across the state of Maharashtra. Of the 25 Moshi has seen ample real estate development to fulfill the lakh, 11 lakh houses will be required in Mumbai city and suburbs. growing housing demand, raised because of the job opportunities A total of 10,000 Smart 1 BHK flats will be built over a period of 3 at a close distance. The location is ideal for end users as there is an years starting from May, 2016. These 10,000 Smart 1 BHK flats will availability of large stock with options in multiple configurations. be spread across 10 locations in Pune, namely Chakan Talegaon, These attract the middle class buyers the most. Moshi sees Moshi Annex , Wagholi Annex- Shirswadi, Sanaswadi, , maximum housing demand from the professionals working in Wai, Shirwal, Urali Kanchan, Kondhwa Annex- Bhopgaon and the Bhosari and Chakan industrial belt. These are white-collar job New. It should be noted that as part of the ‘Housing for All’ generators where people from the middle and senior management initiative, formulated under the Pradhan Mantri Awas Yojana, the work and look for housing as per their stature. Moshi is emerging government has charted out four approaches to provide low-cost as a potential real estate investment destination for end users. housing. Reasons are availability of wide options in varied budget ranges and its economy, which contributes, majorly to housing demand. n Source: Magicbricks Bureau n Source: Magicbricks Bureau MOST POPULAR PROJECT in North Pune http://magicbricks.com/investment-hotspots/pune/north-pune/

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