Pune, often called the “Oxford of the East,” is home to some of India’s top universities and educational institutions. With over 500,000 students coming to Pune every year, the demand for hostels, PGs (Paying Guest accommodations), and rental apartments is constantly rising. For investors, this presents a lucrative opportunity to earn steady rental income while catering to a market that will never run out of demand.
In this blog, we’ll explore the best areas in Pune for student housing investment, expected rental yields, and key factors investors should consider.
Why Invest in Student Housing & PGs in Pune?
- Consistent Demand: Pune attracts students from all over India due to institutions like Savitribai Phule Pune University, Fergusson College, MIT-WPU, Symbiosis, and more.
- High Rental Yield: Student accommodations offer 7-10% rental returns—higher than traditional residential properties.
- Lower Vacancy Rates: Unlike traditional rental markets, student housing has minimal vacancy as new batches arrive every year.
- Affordable Investment: Compared to luxury apartments, student PGs require lower capital investment and have faster ROI.
Best Locations in Pune for Student Housing & PG Investment
1. Kothrud
✅ Why? One of the most preferred locations for students due to top colleges like MIT-WPU, Cummins College, and BMCC.
💰 Investment Range: ₹50L – ₹1.5 Cr
📈 Rental Yield: 6-8%
🏡 Ideal for: PG accommodations, rental apartments
📍 Example: A 2 BHK in Kothrud (₹1.2 Cr) can fetch ₹35,000/month if rented to students as a shared PG (₹8,000-10,000 per student).
2. Viman Nagar
✅ Why? Close to Symbiosis Institute, Christ College, and Pune Airport. Also has IT hubs nearby, increasing demand for working professionals.
💰 Investment Range: ₹45L – ₹1.5 Cr
📈 Rental Yield: 7-9%
🏡 Ideal for: PGs, studio apartments
📍 Example: A 1 BHK flat in Viman Nagar (₹60L) can generate ₹20,000-25,000/month by housing 3-4 students at ₹6,000-7,000 per head.
3. Hinjewadi & Wakad
✅ Why? Students from Indira College, JSPM, and Balaji Institutes look for housing here, plus it’s Pune’s biggest IT hub.
💰 Investment Range: ₹40L – ₹1 Cr
📈 Rental Yield: 8-10%
🏡 Ideal for: Co-living spaces, PGs
📍 Example: A 3 BHK in Wakad (₹90L) rented as a PG with triple-sharing rooms (₹7,000 per student) can earn ₹50,000/month.
4. Baner & Aundh
✅ Why? Premium location with high demand from Savitribai Phule Pune University, FLAME University, and IT professionals.
💰 Investment Range: ₹60L – ₹2 Cr
📈 Rental Yield: 7-9%
🏡 Ideal for: Studio apartments, 1 BHKs, and co-living spaces
📍 Example: A 1 BHK in Baner (₹75L) can be converted into a fully furnished PG and rented for ₹10,000/month per student.
5. Shivajinagar & Deccan
✅ Why? Located in the heart of Pune, near Fergusson College, Modern College, and BMCC.
💰 Investment Range: ₹75L – ₹2 Cr
📈 Rental Yield: 7-8%
🏡 Ideal for: PGs, hostels, small apartments
📍 Example: A 4 BHK apartment in Deccan (₹1.5 Cr) can be converted into a high-end student PG with single rooms at ₹12,000/month.
6. Karve Nagar & Sinhagad Road
✅ Why? Affordable housing options near MIT College, Bharti Vidyapeeth, and Sinhagad Institutes.
💰 Investment Range: ₹40L – ₹1.2 Cr
📈 Rental Yield: 6-8%
🏡 Ideal for: Budget PGs, hostels
📍 Example: A 2 BHK in Karve Nagar (₹70L) rented as a 6-bed PG (₹5,500 per student) can yield ₹33,000/month.
Key Factors for PG Investors in Pune
✔ Proximity to Colleges & IT Hubs – Ensure your property is within 2-3 km of universities or tech parks.
✔ Amenities Matter – High-speed WiFi, common study rooms, and food services increase rental value.
✔ Furnished vs. Unfurnished – Fully furnished PGs (beds, AC, wardrobes, WiFi) get higher rents.
✔ Legal & Compliance – Ensure RERA registration, fire safety, and rental agreements are in place.
✔ Co-Living Trend – Many students prefer co-living spaces like Zolo, Stanza, and Nestaway over traditional PGs.
Conclusion: Best Student Housing Investment Strategy
🔹 If you want low investment + high rental yield, go for Hinjewadi, Karve Nagar, or Viman Nagar.
🔹 If you want premium student tenants, invest in Kothrud, Shivajinagar, or Baner.
🔹 If you want long-term appreciation, Aundh and Wakad are great choices.
Final Thought: Student housing is one of the most profitable and stable rental investment opportunities in Pune. With smart planning, an investor can earn consistent passive income with minimal risk.
💬 Thinking of investing in student PGs in Pune? Let’s discuss the best options! 🚀
