Area Round Up: Advantage Lonavala

Located between Mumbai and Pune : 

Advantage Lonavala

By Mr. Alok Jha JLL India

Already, an increasing number of young families are making Lonavala their home, since it offers a good quality of life and a decent commute to both Pune and Navi Mumbai. 

It is only a matter of time before Lonavala becomes an end-user driven residential market.

Located between Mumbai and Pune, Lonavala – ever-popular for its scenic beauty, excellent weather, greenery, historical monuments, ancient caves and hangout spots - has always been a popular destination for weekend and second homes for both cities.

 

Alok Jha – Manager,
Research & REIS,
JLL India.

It also is likely to become a satellite town for both Pune and Navi Mumbai in the future. Given the economic activity and employment generation in Navi Mumbai – which now has the potential to become a serious office district - Lonavala can mature from a mere weekend getaway into a residential investment hotspot and end-user-driven market. 

Once the Navi Mumbai international airport becomes operational, Lonavala will stand to benefit from excellent air connectivity.

The rising office stock both in Mumbai and Pune has increased the demand for training centres in the region, and Lonavala is already home to the corporate training centres of L&T and Tata.

Lonavala has excellent boarding schools, spiritual retreats and alternate medicine centres, and is also a well-established senior living destination. The town has become the most preferred choice for celebrity events and conferences. As the concept of destination wedding picks up, Lonavala is also witnessing increasing demand as a venue to host weddings, especially ‘monsoon weddings’.

Already, an increasing number of young families are making Lonavala their home, since it offers a good quality of life and a decent commute to both Pune and Navi Mumbai. The current trend for new residents is to rent accommodation first and then go on to buy homes.

Distinct lifestyle contrast over its bigger neighbours..!

In Mumbai, rapidly increasing population density, gruelling commutes and extremely high real estate costs have compromised the quality of life in the financial capital. Left with little choice by the unaffordable property rates, a significant part of Mumbai’s population lives in far-flung suburbs like Karjat, Kasara, Kalyan, Virar and Panvel and travel two hours – one way- each day to reach their offices in the Island City.

Meanwhile, Pune’s city limits are also expanding due to the rising population; meanwhile, escalating real estate costs and the steady erosion of its once scenic areas are insurmountable market realities. Some of Pune’s residents – most notably IT professionals – face daily hour-long drives commuting between their work places, (e.g. Magarpatta to Hinjewadi, Magarpatta to Chakan or Talegaon).

Locations which are within a comfortable driving distance from both Mumbai and Pune are these cities are now in high demand - and Lonavala, situated  only 53 km from Navi Mumbai and 55 km from Pune, therefore assumes renewed importance.

Market activity..!

Given these dynamics, it is only a matter of time before Lonavala becomes an end-user driven residential market.  Aware of this fact, developers began creating land banks in and around the town several years ago with the intention of build lucrative projects to tap into the demand from buyers seeking to take the advantage of low prices and favourable locational attributes. 

In fact, several notable Pune and Mumbai-based developers have already launched projects over the last couple of years to leverage rising residential demand in this hill station. Prominent names now targeting this region include Tata Housing, Kalpataru, Puranik, Ajmera and Lakhani.

Over the last two years, the average y-o-y appreciation for residential real estate prices has been in the range of 7-9%. Currently, residential property prices range from Rs 2,800-4,000/sq.ft.

                            

         Cost Advantage / Affordability Matrix..!

Location / Micro Market	2 BHK Rent	Average Sale Price (Ready Apartment) (INR)
Lonavala	7,000-10,000	2,800-4,000 p sft
Kalyan	9,000-12,000	4,000-6,200
Navi Mumbai	9,000-18,000	4,000-9,000
Karjat	6,000-8,000	2,700-4,000
Hinjewadi / Wakad	9,000-13,000	5,500-6,500
Shivajinagar	13,000-18,000	9,000-15,000

The average rental rates in Lonavala are less than or at par with a few locations in Mumbai and Pune. In Pune, rents in areas like Hadapsar, Viman Nagar and Nagar Road range from Rs 14,000-18,000, and the travel time to Hinjewadi is more than one hour. As an alternative, it is possible to pay a rent of Rs 10,000 in Lonavala and still benefit from a rational commuting distance to Hinjewadi.

Similarly in Mumbai, people paying rents in the range of Rs 20,000-30,000 for homes in old, run-down buildings and travelling to offices in Navi Mumbai can rent a home in Lonavala around half the cost and still save on travelling time.

Connectivity

While the train network on the Lonavala-Kalyan-Thane-Navi Mumbai and Lonavala-Pune routes is well-established, there is need to enhance direct train connectivity between Lonavala and Panvel. Once this is achieved, this hill town will become a preferred alternative for residents of both Pune and Mumbai.

            Location Advantage

Work Location	Average Travel Time to Lonavala	Proposition – Staying at Lonavala and Travelling by Road	Travel Time by Train	Proposition – Staying at Lonavala and Travelling by Train
Kalyan	1.5-2 hours	Not attractive	2 hours	Not attractive
Navi Mumbai	0.45-1.0 hour	Attractive	1 Hrs	Moderately Attractive
Hinjewadi	30-40 minutes	Highly attractive	No direct trains	Not attractive
Pimpri Chinchwad	40-50 minutes	Highly attractive	30 minutes	Highly attractive
Talegaon	20-30 minutes	Highly attractive	20 minutes	Highly attractive
Pune City area	1-1.15 hour drive	Attractive	1 hour	Attractive

About the author 

Mr. Alok Jha is Manager (Research & REIS) at  JLL India

For media contact

Mr. Arun Chitnis

Head – Corporate Communications & Media Relations

JLL India 

Level 6, Amar Avinash Corporate Plaza
Bund Garden Road,
Pune 411001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9657129999

Website: www.joneslanglasalle.co.in

Blog: www.joneslanglasalleblog.com/realestatecompass

Twitter: @JLLIndia

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