Pune has emerged as the biggest commercial real estate market in India. According to the latest CB Richard Ellis (CBRE)’s India Retail Market View H1 2018 report, this city has been a recorded a remarkable up-work trend in commercial leasing rates for the past few years in terms of office space stock and office space absorption trends.
The economy of Pune is mainly dependent on the established industrial centre and the booming software industry. Pune is a major industrial centre, growing rapidly every year. It is home to one of the world’s largest two-wheeler manufacturers, Bajaj Auto. The Pune office market has a stock of 51.2 million sq. ft of Grade A office space. The overall vacancy rate is 6.5%.
Bangalore continued to be the dominant office market driving quarterly space take-up, followed by NCR, Pune and Hyderabad, all of which accounted for more than 80% of the leasing activity altogether. A combination of factors are responsible for making Pune, one of the most sought after corporate realty destination. Some of the most crucial factors have been discussed below :
1. Growing IT/ITES sector :
Over the years, Pune has become one of the biggest start-up hubs who often prefer office space in a good commercial centre. Pune is also among the top cities that saw a good demand and supply for commercial properties in India. In the recent times, Pune has evolved as one of the prominent markets to invest in commercial property. A large number of locations in Pune are developing & growing as business hubs and industrial sectors. The strategic location of the city and a plethora of opportunities which this city provides has captivated the interest of a large amount of corporate houses, eminent organisations and IT industries to set up small and large office spaces. Known as the Oxford of the East, Pune has witnessed phenomenal growth in the IT/ITES sector since the early year 2000 controversies. Home to major IT companies in India, the city still continues to attract foreign investment because of supportive government policies, conducive to growth culture and exceptional talent pool. This trend has created a huge demand for commercial real estate spaces in the city for constructing retail spaces, commercial office spaces, IT city centres and IT parks. The city is slated for new IT SEZ supply of around 3.3 million sq. ft by 2020.
2. Future Infra Developments:
Another reason why Pune city is considered as a preferred hub for commercial investment is its excellent planning as smart city. There has been an impressive development in the number of commercial properties around Pune lately. Pune is initiated as very first model of ambiguous smart city project, it is a major railway hub, a defence centre, and has convenient access to major economic centres of India – Mumbai region, Bangalore, Chennai and the West Coast. In addition, the city’s will soon have its metro route operational from the Rajiv Gandhi Infotech Park in Hinjewadi via Balewadi to Shivajinagar.
3. Matured ecosystem for Start-Ups :
The booming technology sector, availability of a huge talent pool and stable government has made Pune a powerful and positive base for starting and running successful startup. This flourishing start-up culture is also responsible for boosting the demand for commercial realty in Pune.
Concepts like co-working spaces and shared working hubs are increasing demands for real estate in central areas of city link Aundh, Baner, Bhosale Nagar.
4. Educational Hub :
As we have mentioned early Pune is known as oxford of the east, in recent worldwide university ranking, Savitribai Phule Pune university secured 93rd Rank in top 100 universities around the world. Educational infra availability is definitely a usp in Pune’s commercial real estate history.
5. Talent Pool :
Pune is home to many internationally renowned management, medical and engineering colleges. The availability of highly qualified skill pool has been one of the major reasons why corporates prefer to establish their operations in this city.
6. Pleasant Weather :
Good temperate weather and the city living upto its reputation as the ‘Pensioner’s Paradise’ are also responsible for attracting and retaining corporate investment in the city. Located in west India, Pune is the eighth most populous city in the country and the second largest city in the state of Maharashtra, after Mumbai. It is the administrative capital of Pune District and the seventh largest metropolitan region of India. Also called the “Cultural Capital of Maharashtra”, Pune is a premier educational destination in the country. It is known as the “Queen of Deccan”. Therefore, it is evident that Pune has all the potential to sustain its position as a favourite investment hub in corporate realty market in India.