Over the last few years, real estate in Pune has grown massively. The rate of advancement of the sector has witnessed a constant growth as compared to its neighbouring metropolis of Mumbai. A steady inundation of various workforces from all across the country along with the rise in the construction of real estate in the city has produced splendid opportunities for investors. The sustained migration of professionals to Pune has led to the transformation of the city into a vibrant technological hub, an urbane cosmopolitan community of sorts.
Out of the numerous reasons, these are the major reasons that have resulted in the development of Pune.
Rise of Commercial Real Estate
Thanks to the flourishing IT sector and coming together of people, professions and resources, Pune has is expecting a rise in property rates in future with upcoming infrastructure and residential developments. With a large consortium entering Pune real estate, it is much eyed upon by the Investors for maximisation their returns. Pune has been currently seeing commercial leasing of a stable 4-5 million sft per year and this is expected to go to 6-8 million sft in upcoming year.
Pune houses some of the biggest automobile, engineering and electronics companies. Betterment in infrastructure and ease in commuting has led to a massive warehouse stretch across the city. The logistics sector had a massive jump-start in the first quarter of 2019 when private equity players like Morgan Stanley, Warburg Pincus and LOGOS India pumped in nearly $200 million into cities like Bengaluru, Chennai and Pune. Increase in e-commerce players has led to the increase in demand for warehousing sector which is complimented by warehousing receiving the Infrastructure status.
Increasing Rental Income
The cash influx from real estate properties in the form of housing rents and leases has maintained a constant rate and the high predictability factor of such income sources is higher than those of other sectors. Owing to its evolution into a technical hub along with a few top educational universities presence in the city, the place attracts countless professionals seeking work and educational opportunities. Therefore an investment made to earn a stable rental income from residential and commercial properties in Pune can never go wrong due to the high migrant population preferring leasing over owning an asset.
Easy accessibility backed by an efficient transport model enables easy commuting for a vast multitude of professionals who have to regularly frequent between their homes and workspaces. The Pune Metro project too is nearing its point of realization which will further enhance the quality and ease of travelling in and around the city. Connectivity with the Finance hub of India, Mumbai, is also leading to the growth of Pune city.
Education and Employment
Pune is also considered the Oxford of India. Its traditionally been a student town and has over half a million students during any given year. This adds to the talent pool which is also a reason as to why we are witnessing a remarkable rise in job opportunities in the city. Boost in the employment rate implies an upsurge in the demand for better accommodation and real estate due to the rise of income.
Owing to these factors, Pune has become the hotbed for real estate investors and developers in India and is considered as one of the most livable cities in India as per Mercer and no surprise leading real estate investors and developers are queuing up to become a part of the ‘Pune real estate boom’.
The author is the managing partner at EverVantage