Arvind Jain, Managing Director – Pride Group
2014 was a good year for Pune’s real estate market. In fact, it was one of the few cities that were not seriously impacted even during the slowdown. When most markets went back into recovery mode post the general elections, Pune garnered the most attention from investors. Commercial real estate absorption increased visibly during the year, led by the IT/ITeS, BFSI and manufacturing sectors. Residential properties in both established and new locations were in big demand during the latter part of 2014, and luxury projects did especially well. Also, project launches across categories were toned down so as to aid absorption of existing stock.
In 2014, Pune ramped up its reputation as India’s new ‘Township City’, and the new trend of township properties being seen as the hottest new concept for both the city’s end users and property investors from all over took further hold. Living in these projects has become the latest lifestyle statement. Though townships generally take a longer time to be completed, most developers in Pune with such projects on the anvil were able to maintain a full-on pace of construction. As a result, buyers were encouraged by the fact that they were able to obtain possession dates within attractively shorter periods. This fact also increased investor interest in this category.
The single-most influential factor that will drive Pune’s real estate market in 2015 is job creation. A lot of large domestic and multi-national companies will either be entering or expanding their operations in Pune during 2015. This will result in a lot of commercial space absorption from IT/ITeS and manufacturing companies, which will directly influence residential sales as well. Areas that were still emerging in 2014 will see rapid further establishment in 2015 thanks to accelerated infrastructure development.