Pune’s real estate market may not be as big as Delhi’s or Mumbai’s but it does have a few good pegs on its map for the investor. Charholi, on the city’s northern fringes, is one of them. Primarily an agrarian locality, the face of this micro market is gradually changing, which makes it a compelling case for investors, especially those looking at the real estate market in Pune.

Location. Charholi is located approximately 22 km from Pune via the Alandi road. Even though it is some distance away from the main city centre, it does boast of some advantages that are rather difficult to ignore.

It is only 6 km from the Pune international airport and around 17 km from the Pune railway station. But what makes it unique is its proximity to the city’s IT hub, Kalyani Nagar, which is just 9 km away.

There are also a number of educational institutions nearby, most prominent among them being the DY Patil Knowledge Centre. Capital value and rentals. According to Sachin Sharma, assistant manager-research, Colliers International, capital values of residential units in Charholi are in the range of Rs. 4,000-Rs. 4,500 per sq. ft. He adds: “They were in the Rs. 3,500-4,000 per sq. ft range in the past one year,”. That said, the rental market here is yet to pick up pace as Charholi is still in its development phase. Adds Sharma: “Once commercial hubs become operational, Charholi will see a good hike in rental values as seen in the past for Magarpatta city.”

Says Shantanu Mazumder, director-Pune, Knight Frank (India). “Delivery of projects has started now. One year down the line, Charholi will be a good market for

rentals.” Investment options. You can invest either in residential or commercial property, depending on your risk appetite. Adds Sharma: “Developed areas nearby like Viman Nagar and Vishrantwadi are commanding residential capital values in the range of Rs. 6,000-Rs. 8,000 per sq. ft. Rentals are in the range of Rs. 45-Rs. 75 per sq. ft per month.” The investment potential of this micro market has also prompted people to put their land for sale. Though the rates could appear enticing, it’s better to stay away from them unless you are very clear about the ownership of the land. What’s in it for you? There are a fair number of reasons to warrant investment in Charholi. With prices reaching a saturation point in areas such as Viman Nagar, Kalyani Nagar and Vishrantwadi, buyers with modest options are now looking at the surrounding areas. Dhanori, which is nearby, has already seen a significant amount of development in the last few years.

Says Sanjay Bajaj, managing director-Pune, JLL India: “Now, with the proposed Ring Road running alongside Charholi, this fast-paced development trend is going to extend into this upcoming suburb.”

In all, Charholi will be one of the first regions to receive the benefits of the Ring Road as well as other proposed development projects. So far, the growing demand for homes in Charholi was being met only by the local developers. Pride Group’s 400-acre township project here has really shaken things up.

Says Bajaj: “Townships have historically proven to be game changers for locations where they have come up, as is the case with Magarpatta and Amanora.” The other reason that makes Charholi an attractive destination is the location advantage. This micro market is very close to the Pune airport in Lohegaon and has swift connectivity to the IT and residential hubs of Karadi, Hinjewadi, Alandi, Moshi, Viman Nagar and Wagholi.

Says Mazumder, “There is a limited time opportunity to enter the real estate market in Charholi.” Capital values in this micro market have been going up by 14-15 per cent, for the past 2-3 years and will continue to do so at the same rate for the next 1-2 years before it breaches the price point of Rs. 5,000 per sq ft. Adds Mazumder: “The upper limit for affordable market in Pune is around Rs. 5,000 sq. ft.”

Charholi is offering units below this price point now, but the nature of developments that have been happening in this micro market will soon push capital values beyond the Rs. 5,000 per sq. ft mark. So, if Pune is big on your real investment radar, then Charholi is an option you can definitely consider.

OLMdesk@outlookindia.com