According to latest report by CII and Grant Thornton, Pune is becoming increasingly integral to the real estate sector of Maharashtra and the country at large. It continues to witness good traction as the real estate market here is still relatively affordable with new launches helping maintain the momentum.
There are various reasons for Pune’s sudden rise in real estate fortunes. The city is home to a large number of educational and training institutes that cover every aspect of academics. Pune also boasts of attractions for tourists such as a full-fledged horse training infrastructure which is a major attraction among people from other cities. Another, major driving force behind Pune’s success is the information technology edge. Pune and its outlying localities such as Hinjewadi, Kharadi, Hadapsar, Aundh and Wakad are much under the spotlight since the first multinational giants began expressing serious interest in them.
Pune offered big IT/ITeS companies the required huge spaces and infrastructure they needed for building their offices as well as residential complexes for their employees. Pune sufficed their requirements and offered them a high level of comfort, security and civic amenities. Close proximity to the financial capital – Mumbai and rapidly improving infrastructure further made Pune one of the most sought-after destinations in the country. Pune real estate industry’s growth is also linked to the simultaneous developments in the retail, hospitality and Special Economic Zones (SEZs) of the city.
The real estate sector in Pune has seen a lot of deviations. The market was earlier dominated by commercial real estate projects but with the increasing number of immigrants and working population driven by the IT boom, the demand for residential housing projects has increased tremendously. The demand for residential units in Pune is driven primarily by the end-user segment. These comprise of Kharadi, Hinjewadi, Nagar road, Vimannagar, Kalyannagar, Hadaspur, Aundh, Baner, Bavdhan, and Pimpri Chinchwad. Even during the economic slowdown, the decline in capital values in Pune was on the lower side as compared to most of the other major cities. As far as increase in capital values is concerned, Pune is expected to grow at about 8% year-on-year during 2012 to 2013 according to CRISIL.
Real estate developers see considerable growth opportunities in the residential segment as the annual requirement of houses in Pune is estimated to remain in the range of 45,000-55,000 per year over the next couple of years. It’s a win-win situation for buyers also as real estate prices are expected to remain firm with low vacancy levels and steady absorption trends. Buyers have the widest choice in Pune because of the large number of projects coming up all over Hinjewadi, Wakad, Pimple Nilakh, Pimple Saudagar, Aundh and Balewadi.