COVER STORY - Up for a SOARING '16

Jan 02 2016 : The Times of India (Pune)

-Amit Sethi





In 2016, experts are predicting a robust growth momentum in Pune's real estate market

Pune's realty market is considered an all-weather per former. Despite several ups and down in the country's property market in 2015, Pune's real estate market performed well and proved its strength by growing steadily. Attractive emerging locations, infrastructure development and support of business and service sector kept the realty market dynamic in 2015. Experts and developers are predicting a robust growth momentum for Pune's realty market in 2016. Listing achievements of Pune's re ealty market in the year gone by, Surajit Chanda, regional head (Pune), Sobha Ltd, says, “Pune's economy has witnessed a significant boost due to various MNCs consolidating their presence in the city, allowing the residential real estate market to grow. With increasing disposable incomes and influx of foreign labels in the market, there is always a demand for luxury housing here. Announcement of the Pune Metropolitan Regional Development Authority (PMRDA) had propelled the realty growth. Inclusion of Pune in the centre's Smart City project is expected to make a prominent impact in the coming years. The latest amendment introduced to increase the floor space index (FSI) in the Development Control (DC) rules, would prove beneficial in the long run for development of the old city. Housing for all is expected to boost the buyer sentiment and purchasing activity in future.“Today, Pune attracts people from across the country as it offers affordable housing, cleaner environment and enhanced lifestyle. Development of Pune can be attributed to its proximity to Mumbai and quicker connectivity between the two cities.
Experts opine that compared to other cities, Pune's realty market has performed reasonably well in terms of sales across housing segments in 2015. The main reason for this is due to the fact that prices of property are sensibly priced within the Rs 20 lakh to Rs 60 lakh range, which makes things affordable for home buyers.There has been a major shift in n the buying pattern witnessed during the last two to three years. Property in the affordable, lower to mid segment is seeing an increased demand.
GROWTH DRIVE TO CONTINUE IN 2016
“Pune, as a city, has an immense potential for growth. There are various factors that will propel it. Primarily, a number of large multinational companies are setting up operations in Pune attracting white and blue collared personnel seeking employment here. This gives rise to housing requirements and commercial space too. This influx of people has led to demand for residential and commercial property coupled with increased demand for retail and hospitality space. Also, it is important to o note that Pune is not dependent on a particular industry or two and hence has a robust and stable e foundation for growth in long run,“ explains Shrikant Paranjape, chairman Paranjape Schemes (Cons struction) Ltd.
REALTY ATTRACTIONS IN 2016
Experts believe that housing in the range of Rs 20 lakh to Rs 60 lakh will be the defining factor in n Pune for the year 2016. The areas to look out for in Pune are Hinjewadi IT Park, industrial belt of Chakan and Talegaon. Also areas like Wakad, the upcoming areas like Tathavade, Baner and Bale ewadi have seen lots of growth. There is also a lot of development being seen in the Paud Road areaa like Bhugaon and Bhukum.
Shailesh Puranik, MD. Puranik Builders Pvt Ltd, suggests “In Pune, locations such as Baner and Bavdhan are likely to be in focus in 2016 along with other emerging locations. Currently east and west Pune are providing to be the major real estate destinations.East Pune remains the most developed area of Pune and is being largely driven by CBDs. West Pune is being largely driven by demand from emerging IT hubs, SEZs conceptualised Hinjewadi. Aundh, Baner, Bavdhan, Balewadi, Hinjewadi etc, are strategic location in west.These locations are noticeable examples of old Bungalow culture to tall towers in the city. PMRDA, METRO are likely to be in focus, since most actions would be noticed in 2016 on both the fronts. Similarly, the Smart City project is also expected to be in the limelight.“
Experts claim that infrastructure development would be a key aspect in 2016 for real estate growth in Pune as the new areas in the periphery being developed need better road connectivity and other infrastructure such as electricity and water.