Nashik's residential property market had grown at a leisurely pace until about 2006. Thereafter, growth accelerated and started showing significant annual appreciation rates. In investment terms, Nashik emerged as a realistic alternative destination for buyers from Mumbai and Pune.
Even today, the Nashik property market offers relatively low entry costs and attractive appreciation rates. This is also because of the IT/ITES sector in Nashik. Business processing outsourcing (BPO) companies have begun recognising the city as a viable destination, thanks to the lower real estate costs and the availability of educated, English-speaking talented youth.
Also, perhaps because of its relatively late entry into the real estate sweepstakes, Nashik far remained more or less insulated from the regressive dynamics that have impacted markets such as Mumbai.
Nashik's real estate sector benefits from the fact that it is equidistant from Mumbai and Pune. Moreover, it has a pleasant climate, and does not face any shortage of water.
With the rapid development of connectivity between the two cities, we are looking at a future wherein people will live in Nashik and travel to Mumbai and back for their work. With real estate prices in Mumbai unaffordable for all except the rich, Nashik is well on the way to becoming an extended suburb of the financial capital.
With the western side of the city already well-developed, one of the fastest-developing areas is the southern side. Pathardi, which already has fast-selling projects such as Amit's Eka by Pune-based developers Amit Enterprises Housing Ltd, holds immense promise for future appreciation.
For one, rates here are relatively low and are set to rise steadily on the back of local demand and increasing interest by investors from Mumbai and Pune. Pathardi is an ideal residential property investment destination, which is also seeing healthy demand from second-home buyers motivated by the lower property rates.
Apart from local demand, the fact that Nashik is a religious destination has been another reason why affordably-priced homes in Pathardi have seen increased interest by buyers from Pune and Mumbai. The areas along Pathardi Link Road are major developing residential destinations that are in high demand by second home buyers.
The city's pleasant climate attracts buyers for whom religious sentiments are not major motivators for their property purchase decisions. On the whole, Nashik is seeing very credible infrastructure and connectivity upgradation with every passing quarter. This will translate into increasing credibility and potential for its real estate market in the future.
The writer is managing director, Pune, Jones Lang LaSalle India