Corridor of growthCorridor Description and Rating

M O S H I - C H A K A N

Areas Included: Moshi, Chakan and Chikali

Fig 1: Map of the corridor

Corridor of growth (COG)02

About the CorridorIntroduction: The Chakan, Moshi and Chikali Corridor represents the peripheral residential market of Pune situated towards the north along and off the Pune-Nashik Highway. Of these three localities which form the corridor, Moshi and Chikali form part of the Pimpri-Chinchwad Municipal Corporation (PCMC) while Chakan falls outside its limit. Chikali is located to the east of Moshi while Chakan is located to the north across the Indrayani River.

Chakan is an established industrial hub with a presence of major national and international brands in the automobile and ancillary segments like Volkswagen, Mercedes Benz, Mahindra & Mahindra and Bridgestone India. There are more than 750 big and small industrial units in Chakan. Maharashtra Industrial Development Corporation (MIDC) has acquired further 1400+ acre land for setting up Phase-2 of the industrial estate in Chakan. It has received good response from the industry for leasing of land and facilities in this phase.

The locality is home to sizeable blue-collar and white collar work-force which is employed directly or indirectly in these industries. Residential and commercial developments have taken place in the locality to cater to the purchase and rental demand from this segment. Consequently, the locality has seen lot of urbanization over the last couple of years.

Moshi is the last locality of the Pimpri-Chinchwad Municipal Corporation (PCMC) towards the north. It is

strategically located along the Pune-Nashik Highway and between two established industrial hubs – Chakan to the north and Bhosari MIDC Estate to the south. Demand from the southward direction is for relatively affordable options as prices in Bhosari and other areas around it are higher than Moshi. Demand from north (Chakan) is for options in the established part of Pune outside the industrial hub. Moshi also has many small scale industries across a couple of industrial land use pockets.

Chikali is situated to the east of Moshi and is connected to it through the Dehu-Alandi Road. Residential development in Chikali is a spill-over of demand from the industrial area to the south and development is happening in Moshi.

Development Pattern: Development in Chakan is spread across a large area. Two main development corridors within Chakan are the Pune-Nashik Highway in the north-south direction and Talegaon-Chakan Road in the east-west direction. Projects are widely spaced and not localized in a particular area.

In case of Moshi, development is along the Pune-Nashik Highway, Dehu-Alandi Road and along a sector road going west from the highway and connecting to the Spine Road.

Bhosari Road and Chikali Road are the two centres of development in case of Chikali.

Present Scenario: This corridor has been the center of development activity for the past couple of years

and accounts for a major share (40%-45%) of projects launched in the affordable section as per Pune’s price levels.

In Chakan, 65% supply is in the Rs 20-40 lakh price bracket followed by the sub-Rs 20 lakh segment. The 2BHK is the dominant format forming 50% of the supply. There is significant supply of 1BHK format as well. It has 47% share of supply. The average size of apartments is also smaller with the 1BHK formats being close to 600 sq ft and the 2BHK formats being close to 1000 sq ft.

The average price range in Chakan is Rs 3,300-3,500 per sq ft. Consumer preference in Chakan mirrors the supply with 60%+ demand being in Rs 20-40 lakh segment. The 2BHK is the preferred format followed by 1BHK units.

Moshi also has similar demand and supply characteristics. It was noted that 64% supply and 77% consumer preference is in the Rs 20-40 lakh price bracket. However, supply in the Rs 40-60 lakh segment is comparatively much higher than in Chakan. While demand is less than supply, it is still higher in percentage terms than the corresponding demand in Chakan.

The average price range in Moshi is Rs 4,000-4,400 per sq ft. The 2BHK segment again dominates supply with 55% share. However, consumers have higher preference for 1BHK segment (53%) as compared to the 2BHK format (43%).

In case of Chikali as well, most of the supply is in the Rs 20-40 lakh

Properties available in the corridor

The corridor represents the affordable housing market of Pune and this is reflected in the distribution of supply

by budget segments. Most of the supply is in Rs 20-40 lakh segment followed by a much

smaller share of Rs 40-60 lakh price bracket. Chakan, Moshi and the area to the south of Moshi forms an industrial belt with a large number of industries. Employees working in the industries in this belt are the main

demand drivers for the residential segment. However, the purchasing power of these industrial employees is less as compared to those in the IT/ITES sector. This is the reason 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

Corridor of growth (COG)04

bracket. Supply and demand in terms of BHK format also follows the same pattern. Apartments of 2BHK form 69% of supply and 77% of consumer preference.

The average price range in Chikali is Rs 4,000-4,300 per sq ft.

Both supply and demand parameters highlight the affordable nature of the real estate in this locality of the corridor.

Amongst the three localities, Moshi has seen relatively better price gain of 17% over the last two years. Whereas, Chakan and Chikali witnessed an price increment of 5% and 9% respectively, between March 2014 to March 2016

Social Infrastructure: Social infrastructure in the form of support retail and primary healthcare facilities

exists in all the three localities of the corridor. Chakan is more self-sustaining than the other localities and has facilities required to meet the need of the socio-economic profile of its population, though schools are available in limited numbers.

Outlook: Considerable development activity has taken place in the corridor over the last two years. Given the slow market conditions, there is unsold stock in the market. This will take some time to clear. Further, the market has evolved against demand from blue-collar workforce. The purchasing power of white-collar workers employed in the industrial sector would also be on the lower side and cannot be compared with those in other sectors like IT/ITES or BFSI sectors (Banking, Financial Services or Insurance).

Therefore, this will remain a price sensitive market and scope of major price gains is low. Reason being, if the prices rise too high and too fast, the real estate will go out of the affordability of its main demand segment.

There is a possibility that the new International Airport in Pune might come up in a location towards the north-west of Chakan in the general area of the Bhama-Askhed Dam. Once in operation this will help in improving the connectivity.

If this happens, it will lead to up-gradation of infrastructure as connectivity to Pune city and airport is improved. However, there is no clarity on the way forward at present on this aspect.

Overall Connectivity Social Infrastructure Security/Water

Corridor of growth (COG)03

Moshi is centrally located within the corridor. It has good connectivity to Chakan to its north and Chikali to its

west. It is also well connected to other major localities in Pimpri-Chinchwad or Pune. This

makes it an ideal destination for consumers looking for rental options in the corridor. They can commute to Chakan or other nearby areas for work from Moshi. Chakan being a major industrial belt, derives demand from

people working within Chakan. Demand in Chikali emanates from consumers looking for residential options close to the industrial belt to its south.

segment. The relatively much less supply in the Rs 40-60 lakh or Rs 60-80 lakh is aimed at the blue collar workforce in these industries or the trading segment in the corridor.

The corridor has seen considerable amount of construction activity and large number of ready-to-move-in properties are available. The 2BHK format dominates both supply as well

as consumer preference. More than 50% of the 2BHK supply is in the 800-1200 sq ft area bracket with 70% of them being in the Rs 20-40 lakh range. Units of 1BHK also have a large share of supply with most of it being in the 550-700 sq ft area range. In terms of prices, 97% of the 1BHK supply is in the Rs 20-40 lakh price segment.

Sales Price Covered Area ( Lacs) (Sq.ft)

1 BHK 13.5-40 550-700

2 BHK 21-65 800-1200

3 BHK 40-75 1150-1520

4 BHK and Above 75-125 1450-2000

Best sectors to invest in a home Based on rental demand in sectors

Table 1: Sizes and prices of flats available for various room configurations

Based on home buying demand in sectors

Fig 5: Top localities by consumer for renting a house

Fig 6: Top localities by consumer for buying a house

Best bedroom configurations to buy Preferred buying and renting options

Buying Renting Total (BHKs) Total (BHKs)

1 BHK 38% 38%

2 BHK 57% 53%

3 BHK 5% 8%

4 BHK and Above 0% 1%

Table 2: Demand distribution for buying and renting

Analysis of consumer preference for buying shows that Chikali is the most preferred locality within the corridor

with 47% share. Moshi comes second with 36% share of consumer preference for buying.

Break-up of consumer preference by budget segment shows that in the sub-Rs 20 lakh and Rs 20-40 lakh price segments, the share of consumer preference is almost the same. The main difference comes in the Rs 40-60 lakh

price bracket. More than four times consumers are looking for properties in the Rs 40-60 lakh budget in Chikali as compared to Moshi.

Most consumers prefer 2BHK formats when looking for a residential option for rent or from a house purchase

perspective. It has more than 50% share of consumer preference in both these segments. The corridor being a price sensitive market, relatively smaller size of 2BHK apartments helps a buyer to keep the overall purchase cost

on the lower side. About 65% of consumer preference in the 2BHK segment is in the Rs 20-40 lakh segment followed by the Rs 40-60 lakh bracket with 22% share. More than 70% of 2BHK availability is in the 850-1150 sq ft range. This gives flexibility to consumers to choose an option as per their budget.

Price changes and future prospects Historic Price movement Table 3: Historical Price changes

Moshi-Chakan represents the affordable housing corridor of Pune. The demand driver 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

Corridor of growth (COG)04

6 monthly change Yearly change

-3% 5%

Price movement for top localities by Consumer Preference

The quarterly price change in each of the localities in the corridor reflects the overall scenario in the corridor. The price change has happened 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

Corridor of growth (COG)05

Infrastructure UpdatesChakan Industrial Estate – Phase 2

Maharashtra Industrial Development Corporation (MIDC) has acquired a further 1400+ acre land for setting up Phase-2 of the industrial estate in Chakan. It has received good response from the industry for leasing of land and facilities in this phase

Dehu-Alandi Road to Kalewadi BRTS

A 10.2-km Bus Rapid Transit System (BRTS) is under construction which will connect Kalewadi Phata on the Aundh-Ravet Road with the Dehu-Alandi Road via Kudalwadi. This will improve connectivity and accessibility of Chikali to other parts of Pimpri-Chinchwad

Pune International Exhibition and Convention Centre

The PCNTDA is in the process of developing a world class exhibition and convention center at Moshi along the Pune-Nashik Highway. Pune Metropolitan Development Authority is likely to take over the development of this project.

Moshi and Chikali fall under the Pimpri-Chinchwad Municipal Corporation (PCMC) area while Chakan is outside

this limit. Parts of Moshi and Chikali fall under the purview of the Pimpri-Chinchwad New Town Development Authority (PCNTDA).

This authority is responsible for planned development of peri-urban areas of PCMC

Master Plan

Where to buy small, affordable apartments in Pune

Along with flourishing retail and hospitality segments, property market is witnessing an increased activity. Chikhali and Rahatni localities are witnessing maximum supply of smaller units. There is a maximum supply of 1BHK and 2BHK units in both the two localities. Rentals at both, Chikhali and Rahatni, are lower in comparison to some of the developed areas of Pune such as Hinjewadi and Koregaon Park. Most of the people buying apartments in the area are mid-level professionals. Obviously, they cannot avail home loans for larger sums. There is still scope for many developers to bring and launch their projects in Chikhali and Rahatni areas.

n Source: The Times of India

A 1BHK in Pune for Rs 5L? It’s possible!

The government has observed that there is a requirement of 25 lakh affordable houses across the state of Maharashtra. Of the 25 lakh, 11 lakh houses will be required in Mumbai city and suburbs. A total of 10,000 Smart 1 BHK flats will be built over a period of 3 years starting from May, 2016. These 10,000 Smart 1 BHK flats will be spread across 10 locations in Pune, namely Chakan Talegaon, Moshi Annex , Wagholi Annex- Shirswadi, Sanaswadi, Ranjangaon, Wai, Shirwal, Urali Kanchan, Kondhwa Annex- Bhopgaon and Paud New. It should be noted that as part of the ‘Housing for All’ initiative, formulated under the Pradhan Mantri Awas Yojana, the government has charted out four approaches to provide low-cost housing.

n Source: Magicbricks Bureau

Increased supply of independent houses in North Pune

The home buyers in Pune are more inclined towards luxury properties. There are consumers who prefer living in spacious and independent property types such as bungalows, independent houses, and villas. To meet these desires, several home buyers are selecting locations in North Pune such as Chinchwad, Akurdi and Talegaon Dabhade. These not only suit their budgets but also offer convenient access to the main city. Chinchwad is an established commercial area of Pune. With new companies setting their offices here, there is a scope for developing good business. The connectivity through the Mumbai-Pune Highway is an advantage. Such properties can be looked out in the areas like Chinchwad, Akrudi and Talegaon Dhabhade.

n Source: Magicbricks Bureau

Moshi offers many options for home buyers

Moshi has seen ample real estate development to fulfill the growing housing demand, raised because of the job opportunities at a close distance. The location is ideal for end users as there is an availability of large stock with options in multiple configurations. These attract the middle class buyers the most. Moshi sees maximum housing demand from the professionals working in the Bhosari and Chakan industrial belt. These are white-collar job generators where people from the middle and senior management work and look for housing as per their stature. Moshi is emerging as a potential real estate investment destination for end users. Reasons are availability of wide options in varied budget ranges and its economy, which contributes, majorly to housing demand.

n Source: Magicbricks Bureau

IN NEWSCorridor of growth (COG)06

MOST POPULAR PROJECT in North Punehttp://magicbricks.com/investment-hotspots/pune/north-pune/

KEY DEVELOPERS in North Punehttp://magicbricks.com/investment-hotspots/pune/north-pune/

PROJECT SUMMARY BY POSSESSION STATUS in North Punehttp://magicbricks.com/investment-hotspots/pune/north-pune/

PROJECT SUMMARY BY BUDGET in North Punehttp://magicbricks.com/investment-hotspots/pune/north-pune/

CONTACT USl Join our discussion forum at - openhouse.magicbricks.com

l For business enquiries - sales@magicbricks.com

D I S C L A I M E R

Every effort has been made to make this report as complete and accurate as possible. MagicBricks accepts no responsibility for inaccuracies in the information/data contained in this report. It shall have neither liability nor responsibility to any person or entity with respect to any loss or

damage caused, or alleged to have been caused, directly or indirectly, by the information contained in this report. The information/data in this report is subject to change from time to time due to market condition.