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Which is an ideal place to invest in – Mumbai or Pune?

09.30.2015 · Posted in Real estate

Mumbai – the Financial Capital of India, and Pune – the country’s educational hub, are two of the biggest cities in Maharashtra which seem to be booming with realty. While both cities are more than just favorable to live in, one has to keep in mind many variables before deciding which one to invest in. Let’s have a look at the following pointers before coming to that!

Investing in Mumbai?

Pros

Metropolitan life – Mumbai, being a metro, sure has a hyping lifestyle which draws in quite a bit of crowd.
Economic activity – Reasonable; and markets are safer when compared to those of tier-II and tier-III.
High returns – For builders and developers, investing in such a happening city seems very beneficial.
Transport infrastructure – Connection to major cities via rail, roads and airways.
Business opportunities – Due to industrialization, the city is open to a whole new set of businesses which easily attracts migrants.
City of Dreams – Home to Bollywood. Enough said.

Cons

Too expensive – Property rates are going through the roof when compared to those in cities like Pune.
Low scope of appreciation – Higher the supply-demand gap, higher is the appreciation. Mumbai is currently going the opposite, with a large portion of property falling outside the common budget range (60-85L), resulting in increased number of luxury property sales and decreased availability of budget friendly realty, thus decreasing the supply-demand gap.
Unstable market – There have been ups and downs in the past one year.
Geographical limitations – There is almost no scope for growth towards any other direction but to the north of the city.

Investing in Pune?

Pros

Reasonable rates – The prices are budget friendly for middle-class population. The average per square feet price is about 5000 to 8000 INR.

Real estate expansion – Unlike Mumbai, Pune has a greater scope of expanding and developing and improving real estate landscape.

Consistency in market – There were positive improvements (or at least no negatives) in the past one year, despite difficult situations.

High scope of appreciation – Due to fair rates, only few people are actually interested in high investment rather than low investment. This means demand exceeds supply and thus chances of appreciation are higher.

Proximity to IT companies – With so many major IT hubs present in the city, migration of young IT professionals is a sure thing. This is an asset which can add a good value to the rent.

Mumbai-Pune Expressway – Though this is common for both the cities, it is an added advantage for Pune since it connects the city to Mumbai, one of the major cities of our country. This adds a lot of worth to the investment.

Laid-back quality – The city is not as chaotic as the financial hub. For a number of people, Pune is of greater preference than Mumbai in terms of its easy lifestyle and decent cost of living. Most probably this tends to attract buyers to suburban areas where little investment is required when compared to the city side.

Cons
No guarantee about the intactness of current scenario – Pune offers a lot of advantages for investors now, especially in terms of affordability, when compared to Mumbai. But if Mumbai gets back on track (hopefully rationalizing the rates), majority of preference would go to Mumbai.

We can see from the analysis drawn above that currently investing in Pune would be a wise idea. But before choosing the ideal place for investment one should evaluate all the personal points too– money, growth, and returns.

Author Bio:Kamala is a graduate in business management, and works for a property management consultancy. During her free time, she blogs and connects with investors. She writes for indiaproperty.com.