Hinjewadi: The Thriving IT Hub of Pune's Real Estate Growth Story
Hinjewadi, the IT hub of Pune, has been a major contributor to Pune's real estate growth story. The infrastructure challenges if addressed further will propel its growth.
HinjewadiPuneIt HubReal EstateInfrastructure DevelopmentReal Estate MumbaiAug 13, 2024
The infrastructure challenges if addressed further will propel its growth. Hinjewadi's upsurge started in the year 1998 with Maharashtra government's renewed IT policy and establishment of 2800 acres of Rajiv Gandhi Infotech Park, also renowned as Hinjewadi IT Park.
One of the earliest IT companies to set up a development centre in Hinjewadi was Infosys, which established a facility in 1999. Other major companies, such as Wipro, Tata Consultancy Services (TCS), and Cognizant, followed in the early 2000s. Hinjewadi soon turned into an investment hotbed for many. Today, the infotech Park consists of three phases and houses more than 150 to 200 IT companies.
The property prices in Hinjewadi have been steadily rising due to rapid urbanization, infrastructure development, and increasing demand for housing & other real estate segments. As a matter of fact, Hinjewadi boasts some of the highest rental yields in Pune, with rental growth of 17% Y-o-Y.
With its economic prosperity, Hinjewadi has taken the centre stage in Pune as a favoured residential market. In fact, when considering Pune for buying property, the area has become a top choice among buyers and investors alike. Apart from being near to workplaces, the other contributors to its attraction as a residential hub are its close proximity to Pune-Mumbai Expressway, which links Mumbai's commercial districts seamlessly and easy connectivity to Lohegaon Airport & Pune Railway Station.
A mid-housing locality in Hinjewadi has an average residential property price of approximately Rs 8,000 per sq ft which are on an upward trend. In addition to catering to the demand for affordable and mid-income categories, there has been an upsurge in premium & luxury housing as well in the area.
Home to IT parks Hinjewadi with many software companies and startups also boasts a wide range of commercial properties including office spaces and co-working spaces are presently on high demand. The office spaces here are offered at competitive rates, suitable for varied occupier needs.
Hinjewadi's contribution to Pune's total office leasing has nearly tripled from two years back. This increased demand is primarily driven by the IT-BPM, engineering, and manufacturing sectors. Others playing a substantial role in driving this demand includes Global In-house Centres (GICs), captive centres, and third-party off-shoring centres.
What makes the Hinjewadi and standout from other places in Pune, is its, accessibility and, positioning as a well-connected nucleus within Pune's urban landscape. Boasting a robust road network, Hinjewadi ensures seamless connectivity through major routes. The Mumbai-Pune Expressway acts as a lifeline, facilitating easy travel to Mumbai and other significant destinations.
However, with infrastructure development comes lot of responsibilities towards other basic amenities that fulfils the needs of its residents. In the case of Hinjewadi, these responsibilities were left behind while the region grew in terms of its commercial development. The Hinjewadi Industries Association (HIA) reported that 37 IT companies have moved out from the Hinjewadi Rajiv Gandhi Infotech Park in the last ten years due to the deteriorating conditions of the infrastructure and traffic congestion in the locality.
The road ahead for Hinjewadi prosperity and growth is unhindered as investors, home buyers and businesses continue to pour in the Silicon Valley of Pune. The IT sector growth assures that the demand for housing and commercials real estate in this region will sustain in the coming future. But, with the development, addressing basic civic infrastructure and amenities is crucial if it does not want to become another disappointing Whitefield (the IT hub in Bengaluru that was deluged in last rains).
The transformation of Hinjewadi is a dynamic process, with ongoing efforts to address challenges and leverage opportunities for sustainable growth and development. Like every coin has its two sides, investing in Hinjewadi also has its pros and cons. Before the cons overpower the pros, the administration needs to strike a balance that will take Hinjewadi on the global map as the sought after IT-business destination of the world.
Industry experts predict, that the rise in job opportunities in IT and allied sector in the region will likely to lead to a lot of interest from institutional investors and individual buyers in Hinjewadi real estate.
Frequently Asked Questions
What is the current state of Hinjewadi's infrastructure?
Hinjewadi's infrastructure is still developing, with some challenges such as traffic congestion, inadequate public transport, and inconsistent water supply.
What are the major industries driving demand for office space in Hinjewadi?
The IT-BPM, engineering, and manufacturing sectors are driving demand for office space in Hinjewadi, along with Global In-house Centres (GICs), captive centres, and third-party off-shoring centres.
What is the average residential property price in Hinjewadi?
The average residential property price in Hinjewadi is approximately Rs 8,000 per sq ft, which is on an upward trend.
What are the major challenges facing Hinjewadi's residents?
The major challenges facing Hinjewadi's residents include traffic congestion, inadequate public transport, inconsistent water supply, and safety concerns.
What is the future outlook for Hinjewadi's real estate market?
The future outlook for Hinjewadi's real estate market is positive, with the IT sector growth expected to sustain demand for housing and commercial real estate in the region.
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