Pune’s Game-Changer for Connectivity and Real Estate: Impact of Ring Road on Housing Trends

172 km expressway to reshape real estate, rentals, and township growth across Pune

Pune, once the cultural capital of Maharashtra, is rapidly evolving into a resilient urban economic hub. With projects in urban mobility, digital governance, and infrastructure transforming the city, the under-construction 172 km Pune Ring Road is set to be a game-changer for both connectivity and real estate.

The Maharashtra State Road Development Corporation (MSRDC) is executing the project in two phases:

• Eastern Ring Road: linking Pune–Nashik Highway with Pune–Solapur Highway
• Western Ring Road: connecting Pune–Mumbai Expressway with Pune–Satara Highway

By easing traffic, linking major highways, and cutting travel times, the project is expected to significantly alter housing demand, property prices, and township development in Pune’s outskirts.

Growth of New Townships

The Pune Metropolitan Region Development Authority (PMRDA) has already begun work on planned townships.

• The Mhalunge–Maan Township will be developed on 700 acres, modeled on Hinjewadi IT Park.
• Around 15 new townships are expected along the 32-km Phase 1 stretch, including areas such as Avatalewadi, Wadachi Wadi, Holkarwadi, Phursungi, Manjri Budruk, Yevalewadi, and Pisoli.
• Two large townships are planned in Holkarwadi, along with residential projects in Vadachiwadi and Autande Handewadi spread across 500 acres.

PMRDA aims to recover nearly a fourth of the project’s cost through land monetisation models and town planning schemes, expecting a return of over ₹10,000 crore in the next 4–5 years.

Real Estate Ripple Effect

The Ring Road’s influence is already visible in Pune’s housing market:

• Western corridors like Hinjewadi Phase 3 and Pirangut are seeing rising demand, with property values projected to appreciate by 20–25% in the coming years.
• Peripheral areas such as Wagholi, Chakan, Shirwal, and Uruli Kanchan are also expected to see a 10–15% price rise by 2025.
• Premium micro-markets including Viman Nagar, Kalyani Nagar, Koregaon Park, Kharadi, and Magarpatta may see prices cool down from their current ₹8,500–₹10,000 per sq. ft, as buyers shift focus westward to more affordable emerging hubs.

Boost to Rentals and Commercial Demand

With better connectivity to IT hubs, manufacturing belts, and e-commerce zones, demand for rentals is set to surge. Professionals working in Hinjewadi, Kharadi, and Baner will increasingly look to affordable housing options in nearby peripheral zones.

The MSRDC also plans five logistics hubs along the Ring Road, further boosting warehousing and manufacturing, which will drive both employment and housing demand. Retail, hospitality, and mixed-use developments are also expected to flourish.

Challenges Ahead

While the Ring Road promises transformation, a few hurdles remain:

• Affordability concerns for middle-income homebuyers as land prices rise.
• Delays in infrastructure execution due to land acquisition or environmental issues.
• Sustainability worries, with rapid urbanisation requiring careful urban planning, open spaces, and strong drainage systems to avoid flooding risks.

Outlook

Real estate experts agree the Pune Ring Road will unlock the next wave of residential and commercial expansion. Townships with smart-city features, sustainable housing, and green infrastructure are likely to dominate. Investors can expect healthy returns, especially from rental markets and mid-segment housing.

In short, Pune’s Ring Road is not just an infrastructure project—it is set to redefine where the city grows, how people live, and how investors build wealth in the next decade.