Pune- A faster growing city

Delhi Central - Monday, March 26, 2012 10:45:04 PM

After Bangalore, Pune is emerged as one of the faster growing cities in India on the back of information technology and IT base services. Real state hubs spring thanks to this commercial development. For IT driven demand, western part of the city are performing well. Kalyani Nagar, Magarpatta and Viman Nagar in eastern part of the city are driven by IT as well. In this area, some part like Kalyani Nagar, a premium residential hub with robust rental demand has been posting good return.

If we talk about the rental demand, education is playing major role for real estate sector. There is healthy demand for rental property driven by student, particularly in western and eastern Pune area such as Wakad and Balewadi. As a result, property investment in city ent ails rental return. There is currently over 75 per cent of stock uptake in the pune market, according to estimate by the credai pune. The rate of development is approximately over 55000 units being sold per year.

However, the pune buyer is quite demanding and has set a high benchmark for quality. Currently, malls are concentrated in traditional hubs such as Koregaon Park, Viman Nagar and Magarpatta City. However, there is growing demand for retail developments in western Pune and three new larger malls are in the planning stage. Another new trend sparked by the growing education sector in city involves pre- commitments in college and school properties.

All these trends point to a growing demand across segments in the city.

Most of the developments along these corridors are backed by transport corridors. However, like most other premium cities in the country, real estate development precedes infrastructure development.

The city is expected to continue on growth path in 2012. All categories of residential property market are expected to remain active. There is robust rental demand driven by IT and manufacturing industries which is expected to continue if all economic and political conditions remain stable.

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