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Last two decades have been a game changing period for Pune’s Hinjewadi, with a lot happening in terms of growth and development. From a mere suburb in Pimpri Chinchwad on the outskirts of Pune city, its transformation into a burgeoning IT has led to the overall economic growth of the city of Pune city.
Hinjewadi’s upsurge started in the year 1998 with Maha- rashtra government’s renewed IT policy and establishment of 2800 acres of Rajiv Gandhi Infotech Park also renowned a Hinjewadi IT Park, came into the picture.
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, fol- lowed 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.
PROPERTY RATES
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.
According to the industry survey, In Hinjewadi, the circle rate applicable to residential flats is Rs. 53,780, whereas for offices, it stands at Rs. 88,500. In residen- tial, the average price per square foot for residential properties is Rs 7,461. The residential circle rates have a considerable range, starting from Rs 571 per sq. ft. and going up to Rs 12,690 per sq. ft. The average rental rate in Hinjewadi is Rs 28,065. Rental rates can vary significantly, with properties available for rent ranging from Rs 10,000 to Rs 75,000.
THRIVING HOUSING SECTOR
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. Hinjewadi’s phase-1, a residential cum commercial neighbourhood offers a large number of luxury housing units. The area is densely populated with residential apartments and independent homes built by city-based developers. The adjoining areas of Bavdhan, Pirangut, Baner, Balewadi and Mahalunge are other options for reasonably priced housing localities that are well connected to Hinjewadi. The key developers in the region include Lodha Group, Shapoorji Pallonji, GERA Developments, Pride Group, Mahindra, Life spaces, VTP Realty, Kohinoor Group, Kolte Patil Developers Limited, Nyati Group and Godrej among others.
ATTRACTIVE COMMERCIAL SECTOR
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.
Industry reports reveal Hinjewadi is attractive to tech and finance industries needing spacious offices. It caters to 20% of Pune’s office space and with recently approved Maharashtra IT-ITES Policy aiming to create more business opportunities, Hinjewadi is likely to attract life sciences, GCC and industrial occupiers.
In terms of retail real estate, post covid, retail es- tablishments in Hinjewadi have bounced back, given return of employees and more national and interna- tional brands showing interest. For instance, Global High Street Mall, the retail hub in Hinjewadi Phase-2 has attracted considerable interest amongst retailers due to the readily available catchment.
THE INFRASTRUCTURE BACKBONE
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. Hinjewadi not only emerges as a thriving business hub but also as a strategically connected locality, nurturing economic activities and making it a perfect destination for professionals and residents alike.
The thriving real estate market in Hinjewadi is led by the promising infrastructural growth in the region. Hinjewadi has seen a lot of infra projects in the recent times, while several are still under pipeline and will bring a major difference to the real estate market here. The support that Infrastructure has given to the flourishing IT hub is the highlight of this region which attracts investors and homebuyers.
The proposed infrastructure projects by the state include:
- Widening of roads to six lanes, construction of flyovers and establishment of a 100-ton capacity solid waste management project.
- Pune Metropolitan Region Development Authority will start land acquisition in adjacent areas to build roads and flyovers.
- The four-way connecting routes between Hinjewadi and Pimpri-Chinchwad, Mhalunge-Chande-Nande-Ghotawade, from Sus to Nande, and Pirangut and Gho- tawade via Maan will relieve the traffic in peak hours. The Upcoming Mahalunge – Hinjawadi IT PARK Bridge on Mula River Connecting Baner & Balewadi will further disperse the traffic congestion.
- Hinjewadi will get its metro station connecting the area to Shivaji Nagar. This has increased the property valuation of Hinjewadi among ongoing residential projects in Pune.
- The upcoming 110m Wide Ring Road will link PCMC to major highways, along with multiple connectivity from Rajiv Gandhi IT Park.
BUT NOT ALL IS OKAY
Of course, with infrastructure development comes lot of responsibilities towards other basic amenities that fulfils the needs of its residents. In the case of Hin- jewadi, these responsibilities were left behind while the region grew in terms of its commercial development. In May this year 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. Hinjewadi IT Park, established 25 years ago, now faces inadequate infrastructure. The civic authorities have failed to keep pace with fast-track development & expansion of Hinjewadi to offer holistic services & facilities to the lakhs of IT employees living in the area and in the vicinity. Some of the key issues residents often deal with include:
Traffic Congestion: Heavy traffic, especially during peak hours, is a significant problem due to the influx of IT professionals commuting to work.
Infrastructure Strain: Rapid urbanization has led to stress on existing infrastructure, including roads, public transport, and utilities. The reduction of green spaces and recreational areas due to urbanization has also impacted resident’s quality of life.
Water Supply: Inconsistent water supply is a common issue, with residents sometimes facing shortages or relying on tankers.
Waste Management: Efficient waste management is lacking, leading to improper disposal and sanitation issues.
Public Transport: Limited and overcrowded public transport options make commuting challenging for those without personal vehicles.
Pollution: Increasing pollution levels, including air and noise pollution, are concerns due to heavy traffic and construction activities.
Safety Concerns: With rapid urban development, ensuring the safety of residents and tackling crime can be challenging.
Addressing these challenges requires coordinated efforts from local authorities, developers, and the community to ensure sustainable and inclusive growth. Locals claim, the current solutions and implementations are not up to the mark. While, the public and private stakeholders have initiated new steps to resolve these problems, the execution is going at a snail’s pace and does not match the rapid development of Hinjewadi.
ENVISAGING A BALANCED FUTURE
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 de- velopment. 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.
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.
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.
