Global commercial Rental Growth survey has officially listed Pune at rank 4th in a list of top cities that been placed here in the survey. The survey encapsulated 33 Asian cities and the data mentioned here clearly indicates that Pune realty market is seeing its best times now. The survey ranks the cities on the basis of close analysis of growth figures in the commercial as well as the residential arenas.
The major contributor in the survey, Cushman & Wakefield has listed National Capital Region (India) amongst the list comprising top 5 cities witnessing the highest rental growth. Pune has also managed to list itself in the top 3 rank in the survey. There is no doubt about the fact that Pune realty market is growing leaps and bounds; reason can be increased stationing of IT hubs in here or effect of Mumbai. Whatever it is, but Pune and its real estate domain is flourishing. Here are some of the factors that are anticipated to have placed the city in the top rank in the survey:
Why Pune Wins Extra Point!
Here are some of the factors that may have contributed towards keeping Pune at the top:
1. Crystallized Mid-Income Housing Market
The Mid-Income housing in the Pune real estate domain is experiencing a surge in the demand. There is a notable growth in every small and big locality of Pune. The areas that are in the outskirts of Pune are also experiencing a surged demand in the housing market. The main reason behind this is the high net migration rate that the city sees owing to career opportunities and chance to have a better life.
2. There is ‘Home For All’
Pune has homes for people with varying budget constraints and end-users belonging to different background. Pune is seeing a subdued market condition and the real estate property market here is quiet relaxed that every individual has the ability to own a property. The IT hubs and their best-paying career opportunity, together have managed to pull in a lot of expatriates from different Indian cities and thus there are homes for one and all.
3. Foreign Investment
Pune met with a major fortunate foreign investment; Blackstone, that incurred in approximately Rs. 450 crores for a 50% stake in Panchshil’s realty SEZ project, EON free zone at Kharadi. The last quarter of 2013 also saw IDFC putting in capital to buy out a constructed and leased phase (Phase 1) of Pune-based developer, Paranjape Schemes’ SEZ at Hinjewadi, Pune, for whopping Rs. 460 crores. The investments have raised the popularity quotient and given a good boost to the commercial zones here.
4. Better Affordability & Returns
Pune is believed to be a place where end-users can have more gains than the investors. The real estate market of the city looks more favourable for home buyers as there is a possibility of long-term appreciation of residential arena and the appreciation would hardly impact the buyer. Moreover, there are options for affordable housing and thus there is a huge sale graph of residential realty project anticipated in the coming quarters. For instance, the flats that 1 BHK in Pune city are available at a market standardized price.
Pune is at one of the brightest spots in the Indian realty market. The major reasons are availability of affordable homes, correct prices and well-laid commercial zones. All the factors together have attracted a lot of buyers and end-users for huge investments for assets.
Vineeta Tiwari is a keen writer on Global Economy and Realty market. She has written articles on Global realty market and ongoing trends and tips for investors. An ardent reader, she is happy to pen down research based write-ups for global audience. Currently, she is professionally associated with popular realty portal, 99acres.com.