IT Growth in Pune Real Estate Market

Pune real estate residential market growth steady and on track

                      Pune’s real estate market has benefitted from the manufacturing and education sectors, last  35 years, equally or more getting support by  IT and ITeS sectors since 12 years.

When many IT companies began shifting their base to Pune, several property analysts and Developers  believed that the city would grow like Bangalore, given that a similar trend had been witnessed in Bangalore decade ago. However, the dynamics of the real estate market in Pune soon taken everyone on surprise  that it had more broad-based in catering to industries that what had been presumed. Pune is one  among the few cities where multiple demand comes forward.  A large number of small and medium enterprises,  manufacturing units and educational centres in the city and their close proximity to Mumbai, the financial capital of Indian cities, in terms of being an IT destination.

             Properties in close proximity to IT hubs have experienced healthy capital appreciation as a larger portion of the home buyers come from the IT related sectors. The city has been a Core  attraction  for IT companies, resulting in the rapid growth and development of special economic zone (SEZ) and IT parks in and around the city. Localities, such as Hinjewadi, Aundh, Wakad, Hadapsar and Kharadi  are well-known for their huge SEZs for ITeS and IT companies. The city has witnessed a high inflow of IT professionals to these areas. As employment drives demand for real estate, Pune’s pace of urban growth has been faster than many other metropolitan cities. The rate of migration to Pune has been increasing alarmingly every year. The growth of the IT sector in Pune has played a serious role in the development of its Pune real estate market.

               Gera Developers,  Panchshil Developers,  Paranjape Schemes,  Magarpatta City  are contributed  there major force  to  key growth and still drivers at present, for IT to take futher. According to them, IT will continue to fuel the residential market in Pune, until some other knowledge-based sector is created. This IT-driven growth will predominantly be in areas that fall within the municipal corporation. The IT, manufacturing, auto  and education sectors in and around Pune, ensure that the city remains as a core attraction  for professionals from across the country.

                           The manufacturing industry in Pune was the main catalyst for growth of the realty market, before the emergence of the IT sector continues to contribute to the development of the residential market around Pune. People working in the manufacturing sector usually focus on affordable housing options, situated towards the periphery of the city. The third important factor contributing to the growth of the property market in the city is its education sector. As Pune is an education hub, it also attracts students from across the country and the world, busting the demand for  rentals, PG and Hostels. These students  perhaps  opt for jobs within the city, after having spent three to five years in educational  in Pune City.

                          Constantly  growing IT hub and a well-established educational locality, constantly invite Settlers  for the city’s real estate market.  In addition to IT, the city is home to a large number of manufacturing   industries   and educational and training institutes, which attracts students and academicians. Pune has become one of the most selected city for retired  for many reasons like  weather, water, Connectivity and so on ..  The city is well-connectivity to Mumbai,  Pune has become  an economic powerhouse by its own  strength, providing  home to several multinational companies and industries. Consequently, it has emerged as one of the most important employment centre in the country. This has boosted infrastructure development, including road connectivity, parking facilities, public transport and uninterrupted electricity supply  and  better drinking water supply.

            The  pleasant climate and its close proximity to Mumbai, made Pune a preferred choice for many  “Mumbaiker”,  a Second home in Pune they love to invest.  Moreover, real estate in Pune is far more affordable compare to Mumbai city. This is one of the main reasons this property market is not experiencing a massive slowdown like many other saturated markets across the country.

            Pune Real  Estate  experts feel that projecting Pune as a mere IT hub, has restrained the true potential of the city. But the over all  contributions  are still boosting its economy and a constant demand for  luxury real estate growth can not be ruled out in the coming days.

             Pune Real  Estate  market was earlier dominated by commercial real estate IT Hubs. However, residential housing projects have now increased tremendously, owing to increased affordability, rising income levels, inflow of immigrants and a growing working populations. In spite of these factors, Pune Real Estate  market has not yet reached its peak. Nevertheless, as multiple demand drivers play their part in the property market, prices in the city are constantly appreciating, at a time when other major markets are stagnant, if not witnessing any price corrections but stability.

Here,  I join the team with the possibility of  Real Estate market correction, only after a 50% rise in most of the areas and a fall  to the tune of 20% can't be ruled out in the coming years.