While IT-ITeS, manufacturing and retail sectors in Pune have been generating a steady demand for cuttingedge commercial properties, new-age startups and co-working culture have redefined office space landscape in the city

Kanchan.Gogatetimesgroup

Changing skyline and towering commercial complexes have brought about a paradigm shift in Pune’s commercial real estate as the city has been attracting investments from private and institutional investors. While commercial real estate was largely concentrated to the metros, retail expansion, job generation and changing trends in entrepreneurship and work culture have paved way for commercial towers in Tier-II and Tier-III cities. Pune has been witnessing a growing demand for the commercial real estate.

IT has been a long-standing generator for office space while, manufacturing, BFSI, education, hospitality, retail healthcare and F&B have contributed to the cumulative demand for the commercial real estate. Pune is leading from the front for the IT, technology and gaming startups. Hinjewadi, Kharadi, Senapati Bapat Road, Nagar Road, Vimanagar, Hadapsar, Deccan, Baner and Aundh have emerged as thriving hubs for IT parks, malls, multiplexes, educational institutes and corporate offices.

Due to less supply, Pune has been witnessing a huge demand for office spaces. There are good rental returns at right locations, say reports. Startup ecosystem has alerted commercial real estate landscape in Pune for better.

EXPERT SPEAK:

SATISH MAGAR’s, PRESIDENT ELECT, CREDAI NATIONAL

Pune has quickly become one of the key economic hubs of India. A sharp rise in economic and commercial activities has also had a cascading effect on the demand for commercial real estate in the city which has witnessed rapid growth in recent years. With the presence of superior connectivity, infrastructure and favorable demographics, we expect this remarkable momentum to continue, which is bound to have a positive effect on the commercial real estate sector in Pune.

RAM CHANDNANI, MANAGING DIRECTOR-ADVISORY & TRANSACTIONS SERVICES, CBRE INDIA

With the emergence of various IT majors and multi-national companies, Pune has been witnessing a rapid influx of commercial activity. Areas such as Koregaon Park, Kalyaninagar, Camp, Wakdewadi, Shivajinagar and Yerawada are key residential clusters and command premium over other parts of the city. Commercial activity has picked up pace with locations such as Hinjewadi and Kharadi emerging as key commercial clusters.

ANUJ PURI,
CHAIRMAN, ANAROCK PROPERTY CONSULTANTS
Â# The average rental yield of good commercial properties falls in the range of 6%-10% - which is definitely more attractive to investors than the rental yields for residential properties. The consistent and increasing demand for good office real estate assets in Pune rides on the back of the rapid employment generation in the city, and also the imminent possibility of the first REIT listings. While India has already transformed itself into one of the world's most promising and prominent countries for start-ups, Pune has managed to corner a significant share of the pie because of the several advantages it offers to such firms.
RITESH SACHDEV,
SENIOR EXECUTIVE DIRECTOR, OCCUPIER SERVICES, COLLIERS INTERNATIONAL INDIA

Office demand continued to be driven by technology occupiers with the sector accounting for about 87 per cent of the total leasing volume in the city. We expect the leasing momentum to continue with the influx of new supply. As per Colliers Research, Kharadi and Hinjewadi will remain the most popular locations among occupiers. The new supply should continue to entice technology occupiers' focus towards micro-markets such as Kharadi and Hinjewadi in the next three years.

DEMAND DRIVERS IN PUNE’S OFFICE SPACE

NCR, Mumbai and Bengaluru house most of the coworking stock in India followed by Pune and Kolkata, says Knight Frank India's Co-working: The office of the future report;

Transactions were better in H2 2017compared to previous years - demand from manufacturing and other services sector, says Knight Frank's Report;

Mumbai, NCR, Bengaluru, Hyderabad, Chennai and Pune are currently the hottest cities for investments into Grade A offices, co-working office spaces and IT parks, says ANAROCK research;

In India, the growth of flexible office space is expected to grow at 40% - 50% in 2018, says JLL research;

Pune has witnessed that coworking is a key occupier in city.