Pune is a vibrant and rapidly expanding city in the west of Maharashtra. By its location alone, Pune has several advantages. The climate is moderate and it is only 160kms away from India’s most populous Metropolis, Mumbai. But it isn’t only for geographical reasons that the city is one of the most sought after living destinations in the country.
Mercer’s Quality of Living Report for 2016 ranks Pune high on its list of Indian cities; second only to Hyderabad. In fact, Pune even scores better than Mumbai and New Delhi, which are India’s more conventional business centers. The relatively lower crime rate and better air quality are amongst the reasons that Pune is largely preferred. Apart from this, a large portion of Pune’s population consists of students and young professionals. Pune, also fondly called India’s ‘Oxford of the East’, is one of our country’s main educational hubs. With the reputed Pune University, Symbiosis University, Fergusson College, and other well-known educational and research institutions, the city attracts students from all over the country, south-east Asia, the Middle East and Africa.
A flourishing manufacturing and IT industry also add to the city’s advantages. India represents one of the largest automotive industries in the world. Pune could very well be its proverbial headquarters. Pune has been cited as India’s ‘Motor City’ because of the number of automobile manufacturers that have set up base there; from Tata Motors and Mercedes Benz to Volkswagen and General Motors. The city is also home to a large IT sector. The sprawling Rajiv Gandhi Infotech Park in Hinjewadi is just one amongst many examples of the prominence of Pune’s IT industry. This is further augmented by the presence of IT majors like Capgemini, Vodafone, Infosys, etc.
With a developing and productive economy comes growth in business and trade. In turn comes the demand for housing and property. As a front runner in creating jobs that attract qualified professionals from around the country and the world, Pune is a desirable market for real estate developers and investors alike. While the city center may have expanded organically and reached its space limits, there is plenty of scope for expansion along Pune’s periphery. Surrounding areas like Wagholi, Chakan Alandi, Pirangut, etc. are experiencing rapid urbanization thanks to the industrial development in their vicinity.
The availability of land at a cheaper cost in Pune also incentivizes the real estate industry. As much of the city’s expansion is taking place along its outskirts, planned and integrated townships are the latest response by developers. The aim is to promote all-inclusive living environments to attract more investors. Pune has witnessed integrated township success stories like Magarpatta City (a 400-acre township). Magarpatta city is the first township in the country that was built on agricultural land, not by buying the land from the farmers, but by making them shareholders in a development company that stood to profit from residential construction. 120 farmer families gained from this endeavor. Similarly, 235 farmer families benefitted from Nanded City, a 700-acre township based on the same model.
These are only 2 examples from an extensive list of existing townships, and there are many more in the pipeline. Whether in residential or commercial construction, the booming economy of Pune that is creating jobs and attracting migrants, can be credited for the diverse opportunities presented to the real estate industry. Therefore, it leaves no doubt why a commercial real estate investor needn’t think too hard before digging in to what Pune has to offer.