By Nikita Parekh
Pune is developing rapidly and still it has huge potential to attract more developments and it will witness the progress in the coming months. In the first part of Prime Pune we have studied the cities overview, demographics and scenario over land use and housing. In the second part we will learn about the developments and current progress, demand and market view of the city, along with the developments of other sectors which contributes in the growth of Pune’s realty market.
Market view as per 2013
Wakad, Baner, Aundh and Pashan in the Western region continued to remain priority housing destinations due to their close proximity to the industrial zone of Hinjewadi, easy accessibility to the Mumbai–Pune Expressway, and the presence of a large IT sector workforce. Furthermore, demand remained high in the Eastern regions of Wagholi, Kharadi and Hadapsar owing to availability of developed physical and social infrastructure, established organized retail, and proximity to the city airport. Additionally, close proximity to the EON SEZ, Kharadi and Magarpatta continued to promote Keshav Nagar (Eastern Pune) as a priority housing market. Capital values rose during 2013.
Housing demand in Pune is likely to improve further by the second half of 2014. The Eastern and Western Suburbs of Baner, Balewadi, VimanNagar,Kharadi and Hadsapar, located in close proximity to IT and industrial hubs, are likely to attract major transaction activity. Additionally, the proposed infrastructure development of the Pune Metro Rail, the Bus Rapid Transit System (BRTS), and upcoming SEZ developments are all expected to provide impetus to residential developments in the Northern region of Chakan, Tavet and Talegaon.
Developments in Pune
Pune is rapidly developing as a IT/ITeS city and automobile ancillary, both the industry is expanding its growth in the city significantly, resulting in the growth and development of real estate and infrastructure sector. IT and automobile sector is supporting the city for its development in to a metropolitan city. The State Government of Maharashtra is implementing measures to promote Pune as an IT/ITES destination; and promoting the Rajiv Gandhi IT Park as an IT/ITeS knowledge center by acquiring large tracks of land and inviting large Indian MNCs such as Wipro, Infosys, and TCS, in the early 2000s set the tone for the city. Pune has many major IT parks like Magarpatta Cyber City, EON Free Zone, Commerzone, Embassy Tech Park, Marisoft IT Park (Kalyaninagar),Panchshil Tech Park and MIDC Software Technology Park (Talawade).
Education in Pune
The city’s premier education institutes have ensured that there is always a great talent pool available for various industries. With over six Universities and more than 500 colleges, the city boasts of leading institutes like the Armed Forces Medical College Pune, the College of Engineering Pune, the Symbiosis Institutes, and the Film and Television Institute of India. Another factor helping to position Pune strategically for businesses in India has been its excellent connectivity to Mumbai, and the infrastructure available due to the Mumbai–Pune Expressway.
Hospitality in Pune
Pune has witnessed huge growth in hospitality sector since 6-7 years, several ventures of hosipitality and serviced apartment are build. Currently, the city has nearly seven five-star properties, including the JW Marriot, the Hyatt Regency, and the Le Meridien. Additional supply of star-rated properties is under construction, and expected to enter the market by 2015.
Pune is emerging in to an IT hub and the demand and supply of commercial space is high in Pune. There is around 4.1 million sq. ft. of Grade A office space was transacted in 2013, of which around 2.4 million sq. ft. was absorbed in the city’s Off CBD micro-market—largely led by IT/ITeS occupiers. On the supply front too, of the approximately 4.4 million sq. ft. of Grade A office space that came on stream during 2013, around 2.16 million sq. ft. was released in the Off CBD market. The city also saw significant SEZ supply addition, with the completion of EON SEZ AatKharadi. Owing to enhanced demand levels, rentals appreciated across most micro-markets towards the end of the year.
Demand– During the year Pune market can see an increase in its commercial leasing activity ffolowing the demand The large anticipated supply addition, along with the consolidation and expansion of existing and new corporate occupiers is likely to generate demand for Grade A office space across all micro-markets in the medium term. The IT/ITeS,and BFSI segments will continue to drive demand for office space in the Off CBD and PBD locations.
Retail Market of Pune
The retails market is significantly increasing in the city, the high-streets of JM Road, Aundh, Koregaon Park and MG Road continued to be the preferred location for retailers, especially from the F&B and fashion segments. In terms of fresh organized retail space supply, Seasons Mall (0.65 million sq. ft.) at Magarpatta City became operational during 2013. Rental values remained under pressure, as retailers adopted a cautious approach amid continued sluggish market sentiments and consumer confidence. The city will soon witness new retail outlets during the year, some of the exclusive projects are Westend Mall at Aundh, the ICC Mall on SB Road, and the Royal Heritage Mall at NIBM. These projects will make an addition to city’s retail space of 1.5 million.