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 Pune-Nashik 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 Bhosari 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-Chinchwad 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 Indrayani River. 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 Dehu-Alandi 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 India. 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. Maharashtra 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.