Pune Real Estate – A Brave New World

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kishor pate.1Kishor Pate, CMD – Amit Enterprises Housing Ltd.

Pune is growing – literally every single day. It is home to some of the biggest names in manufacturing, IT, services, retail outlets and more. A steady growth of IT and ITES segments has set off the demand for quality residential projects in new areas of Pune. In fact, the residential requirements of ITES companies will continue to be the primary demand drivers on the Pune residential property market in the future, as well. Today Pune is ranked best for its quality of living and space, educational institutions, climate and affordable cost, compared to other major metros.

In previous times, property buyers in Pune showed a marked predilection for low-rise structures like row houses, twin bungalows and independent bungalows. Today, this trend has given way to a preference for apartments in multi-storeyed residential projects, thanks to the increasing space crunch in the more preferred areas and the overall economies of scale. It is a simple fact of life that flats in multi-storeyed projects can be mass-produced and therefore come at a lower cost than stand-alone or semi-exclusive homes.

Nevertheless, with a definite crystallization of income segments that has emerged on the simultanous growth of Pune’s industrial sector, the IT/ITES segment and the services industry, there is a more or less balanced demand for all kinds of homes today. Interestingly, Pune’s developer community has been able to cater to all demand segments throughout, though rates for stand-alone and semi-exclusive units have certainly risen in tandem with the aspiration and purchasing power of the targeted buyers.

With the rapid saturation of Magarpatta, Hadapsar and Aundh, the walk-to-work theory has now been almost fully exploited. The next step on the evolutionary ladder of Pune’s residential property market is the short-drive-to-work concept, which is gaining popularity. With the emergence of more and more projects that offer this facility in key locations, Pune properties are set to become even more attractive investment opportunities. Many developers are actively facilitating this concept in areas such as Baner, Undri and Ambegaon.

Meanwhile, there are definite danger signals ahead. If not kept in check by a more rational supply pipeline, the ever-increasing property prices in Pune could eventually rob the city of its competitive edge as an investment destination in the face of stiff competition in the IT/ITES race from cities like Chennai and Hyderabad. Inadequate infrastructure is another key issue. The city’s planning authorities should observe and learn from the steadily declining state of affairs in the larger cities and take steps to ensure proper planning of infrastructure to match the growth.

As the Pune property market in set to grow further in the times ahead, it looks forward to more proactive support from the state government and local municipal authorities in terms of taking the necessary steps. With a conducive environment for growth, Pune is all ready to be a mega city of the future.