Pune property mkt will continue to be upbeat
PUNE: Business is looking up in Pune, and for the realty market, that can only spell good news. According to a recent market intelligence survey conducted by Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) and Vascon Engineers Pvt Ltd, Pune has in the past five years, witnessed an amazing growth story and is poised to see more growth in the near future. There have been as many as 128 manufacturing proposals from new medium and large-scale players wanting to set up their operations in Pune. These imply an additional investment of more than Rs. 800 crore that has entered Pune, apart from the investments being made by the existing companies in the region. As business activity picks up, the property market will continue to be upbeat. Lease rates for commercial premises will be steady, helped by the huge capacity that is being created in the city areas. Lease rates in areas such as Camp, Kalyaninagar, Shivajinagar, Wakdewadi, Deccan, F.C. Road, J.M. Road, and Nagar Road are among the highest in the city and lease rates for retail spaces have increased by nearly 25-50 per cent over the past two years. Lease rates for commercial spaces, however, have been more or less steady over the same period.
Aggressive marketing has helped in competitive prices. Also, there are still areas like Nagar Road or Wakdewadi with potential for space creation; this takes off the pressure from the prices. Around 4.5 to 5 million sq.ft commercial office space will be developed in Pune over the next two years and should be enough to keep the prices steady in the near future. The average lease rates for constructed office premises are the highest in the Camp Area (including East Street and M. G. Road), Deccan and Laxmi Road and hover in the range of Rs. 38 to Rs. 40 per sq.ft. This is followed closely by the F.C Road and J.M. Road areas, wherein a monthly lease for office space could cost anywhere between Rs. 35 to Rs. 38. Currently, lease rates at Nagar Road are on the lower side; with the lease rate in the area hovering between Rs. 25 to Rs. 28, this site looks to be extremely attractive as the new hot spot for commercial development in Pune. Lease rates for retail spaces could be upto 120%-150 % higher than the corresponding figure for office spaces. Thus, while a monthly lease in Camp for an office space could roughly be at Rs 39, that for retail space could be around Rs. 95. This trend indicates the strong growth the retail segment is currently enjoying in the city. The trends in the outright sale rates are very similar to that in the lease rates. The areas with the maximum lease rates for constructed commercial spaces i.e. Camp, Lakshmi Road and Deccan are also the areas with maximum outright purchase rates per sq.ft.. The rate in these areas is between Rs. 3700 and Rs. 3900 per sq.ft for an outright sale. If the sale happens at a construction level, the client could get upto 15-20 per cent discount on the deal. Areas like Wanowrie, Kothrud, Bavdhan, Hadapsar, Kondhwa, Kharadi, Katraj/ Baner Road and Aundh are also witnessing good growth. While lot of industrial activity has been happening in Hadapsar, Kondhwa and Katraj, one finds more of commercial development happening in Kharadi and Kothrud. Areas like Baner and Aundh are primarily residential zones; one does find evidence of some IT activities in these areas.
The outskirt areas in Pune are the ones where industrial/manufacturing activity has been very rapid, though one finds places like Hinjewadi and Talawade that lie in the outskirts and are today hubs of service-oriented businesses like IT. Pimpri-Chinchwad , Hinjewadi, Chakan, Pirangut upto PaudandMulshi, Mohammedwadi and Talawade have been classified to be the outskirt areas of Pune. Most of these areas are best suitable for factory spaces. For sustained growth in all these areas, state and local authority intervention will be needed. The government needs to take steps to improve infrastructure like roads, water supply, electricity and public transport system , the study says. These steps will definitely help in attracting investors, multinational and software companies to enter Pune and take the city to a different horizon.
Aggressive marketing has helped in competitive prices. Also, there are still areas like Nagar Road or Wakdewadi with potential for space creation; this takes off the pressure from the prices. Around 4.5 to 5 million sq.ft commercial office space will be developed in Pune over the next two years and should be enough to keep the prices steady in the near future. The average lease rates for constructed office premises are the highest in the Camp Area (including East Street and M. G. Road), Deccan and Laxmi Road and hover in the range of Rs. 38 to Rs. 40 per sq.ft. This is followed closely by the F.C Road and J.M. Road areas, wherein a monthly lease for office space could cost anywhere between Rs. 35 to Rs. 38. Currently, lease rates at Nagar Road are on the lower side; with the lease rate in the area hovering between Rs. 25 to Rs. 28, this site looks to be extremely attractive as the new hot spot for commercial development in Pune. Lease rates for retail spaces could be upto 120%-150 % higher than the corresponding figure for office spaces. Thus, while a monthly lease in Camp for an office space could roughly be at Rs 39, that for retail space could be around Rs. 95. This trend indicates the strong growth the retail segment is currently enjoying in the city. The trends in the outright sale rates are very similar to that in the lease rates. The areas with the maximum lease rates for constructed commercial spaces i.e. Camp, Lakshmi Road and Deccan are also the areas with maximum outright purchase rates per sq.ft.. The rate in these areas is between Rs. 3700 and Rs. 3900 per sq.ft for an outright sale. If the sale happens at a construction level, the client could get upto 15-20 per cent discount on the deal. Areas like Wanowrie, Kothrud, Bavdhan, Hadapsar, Kondhwa, Kharadi, Katraj/ Baner Road and Aundh are also witnessing good growth. While lot of industrial activity has been happening in Hadapsar, Kondhwa and Katraj, one finds more of commercial development happening in Kharadi and Kothrud. Areas like Baner and Aundh are primarily residential zones; one does find evidence of some IT activities in these areas.
The outskirt areas in Pune are the ones where industrial/manufacturing activity has been very rapid, though one finds places like Hinjewadi and Talawade that lie in the outskirts and are today hubs of service-oriented businesses like IT. Pimpri-Chinchwad , Hinjewadi, Chakan, Pirangut upto PaudandMulshi, Mohammedwadi and Talawade have been classified to be the outskirt areas of Pune. Most of these areas are best suitable for factory spaces. For sustained growth in all these areas, state and local authority intervention will be needed. The government needs to take steps to improve infrastructure like roads, water supply, electricity and public transport system , the study says. These steps will definitely help in attracting investors, multinational and software companies to enter Pune and take the city to a different horizon.
I dont think so, the income levels of people are not rising in compared to the rising prices of land, whatever is bought right now is being done by business or NRI who have a lot of "unaccounted " money. there would be a stop to all this price rise at some point of time when these people have already bought a couple of houses.
ReplyDeleteNo doubt Pune market is one of the best real estate market in India. Real Estate investors are very happy because they invested in Pune Property. Now days many residential and commercial property construction is going on in Pune.
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