Magarpatta City, India - Pune’s Real Estate Jewel

The boom that has been witnessed in the Indian real estate sector so far has now begun to permeate to smaller towns and satellite cities. The main reasons for this are:-

• The Information Technology and Business Process Outsourcing sector is looking towards smaller towns in order to cut costs and maintain their global competitiveness. Rising cost of real estate and labor in big cities such as Mumbai has prompted this move to cities such as Pune. These smaller cities have ready land available for development, untapped manpower and a rising quality of life.

• Growing urbanization is another factor which is aiding the growth of small towns. According to the UN population Division, the urban population in India will grow at the rate of 2.5% p.a. for the next two and a half decades. The Census of India of 2001 has estimated that 41% of the Indian population will be living in urban centers by 2011.

• Real estate developers and retailers are also trying to cash in on the ‘first mover’ advantage by moving into the smaller towns and cities.

• All these factors coupled with increased liquidity being pumped into the Indian real estate sector by the international real estate funds and the private equity funds has aided the growth of these smaller urban growth centers.

Pune - a hive of real estate activity

Previously known as a pensioner’s paradise the real estate sector in Pune has been undergoing a rapid transformation during the past few years. Pune is located at a distance of approximately 200 km from the metropolis of Mumbai and its connectivity with Mumbai was greatly improved with the opening of the 93 km long Mumbai-Pune expressway in 2002.

Pune has also seen much corporate growth in the city with companies such as HSBC, Whirlpool and Mphasis setting up shop there in recent times. Infrastructure has also been developed in the city and this has bought a host of IT and ITES companies to Pune, which is rapidly transforming into a ‘tech city.’

Hinjewadi, located in the Western Suburbs of the city, is at the center of this activity as it comprises an IT park that has attracted big players from the Indian and global Information technology sector such as Infosys, Wipro and Cognizant. This has given a boost to residential property prices in the surrounding areas of Aundh, Baner and Bhugaon.

The current real estate activity in Pune is not just limited to areas around the IT Park but has spread to areas such as Kalyaninagar, Bund Garden, Vimannagar and even the highly desirable area of Koregaon Park. However the area which is the cynosure of this activity at present is the marvelous area of Magarpatta City, on the outskirts of Pune city.

Magarpatta City - From farmland to tech town and special economic zone

Like many upcoming cities in India, Magarpatta City as we know it today has its origins in farm land. The idea to create such a mixed use township took off in 1993 when 120 farmers who lived on the outskirts of Pune city decided to pool together all their small ancestral plots of land - a total of 400 acres - for this project.

The mind behind this plan was a well connected and persuasive landowner called Satish Magar. Magar had a tremendous entrepreneurial vision and he, together with his family owned 40% of the land involved. He also had the trust of his fellow farmers and was able to convince them easily of his ideas.

The project first met with much resistance from the Pune Municipal Corporation but the Corporation soon caved into popular demand and the development company was created with the land that was pooled together, with the farmers becoming proportionate shareholders. Many of them actually got into the business of construction and development as a result of this development.

Encouraging walking to work

Satish Magar dreamed of transforming the land within the township into a software park rather than inviting heavy industry to set up base there. The resultant structures which have developed or are in the process of development include around twenty gleaming office blocks which are located in concentric circles around a central park. The township also has three hundred residential buildings also in various stages of development. The office blocks and residential buildings have been constructed in this manner so as to facilitate the mantra of ‘walking to work’ which the township actively promotes.

Satish Magar, today is the managing director of Magarpatta Township Development and Construction Company which is involved in the actual construction and development of a few of these residential buildings.

Moreover the Government of India in August 2007 approved of the development, operation and maintenance of a Special Economic Zone for Electronic Hardware and Software, including Information Technology in the township. The area covered under this SEZ is a massive 119,800 sq meters.

The development of both commercial and residential real estate in Magarpatta is on international lines with much emphasis on the environment, education, health care and fitness and recreation. The buildings within this township all have state of the art world class amenities including high-end gyms and fitness centers, multiple Internet Service Providers , 100%Power Backup, parking facilities and top notch security systems.

A choice of residential and commercial investments

A number of prominent Pune developers are currently involved in on-going residential and commercial projects in Magarpatta City. Some of the developers who have large developments in Magarpatta City are Kumar Builders, Runwal Builders, D.S.Kulkarni Developers Ltd., and The Magarpatta Township Development and Construction company.

Another great advantage of Magarptta City is its close proximity to the main city of Pune. It is located at a distance of 7 km from Pune’s railway station and is at a distance of 5 km from the city’s business center.

Even though Pune’s Lohegaon airport is currently a domestic airport save for two international air links to Singapore and Dubai, as Pune and its surrounding areas develop into an important hub for technology, its airport is also bound to grow and attract more international links. All this will in turn continue to aid the growth and development of both Pune and Magarpatta City.