Robust Pune Realty

ROBUST PUNE REALTY

“Buy real estate in areas where the path exists and buy more real estate where there is no path, but you can create your own.”

– David Waronker, an American real estate investor.

In a developing country like India with a combination of unorganized and organised market structure, the real estate industry is a booming sector in general. Though traditionally being unorganised and fragmented, the commercial property market is in the boom. Post the liberalization of the economy, in the past fifteen years the country’s real estate sector has seen an upsurge estimated to grow to USD 102 Billion from its current USD 14 Billion within the next decade attributed to the favourable demographics, urbanization, increasing in purchasing power of the people and a general flexibility in credit policies of financial institutions.

The reason for the growth:

  • Booming economy – boosted to 7.4 % and an all-time high of 11.4 % in 2010.
  • Raise in the Personal Disposable Income (PDI) of the middle class and real estate becoming an investment option.
  • The emergence of India as a lucrative offshoring destination with a pool of brilliant minds.
  • Trends toward growth and improvement of infrastructure facilities in Tier-II and Tier-III cities.

Known as the ‘Queen of the Deccan’, Pune is Maharashtra’s second largest and India’s Eighth largest metropolis emerging as one of the primes hubs for the IT sector in India. With the emergence of the industrial development in Pune during the 1950-1960s, it has become of the cream locations of India has some of the highest-valued commercial and residential spaces in the country. The Phase-I and Phase-II of Hinjewadi have alluded a large number of people interested investing, especially from the IT sector and has been declared as a Special Economic Zone (SEZ).

Factors promoting the Realty sector of Pune:

  • Manufacturing Industries: In recent times, the Gamma Global City has emerged as one of the leading business hubs and is home to a variety of sectors like automobiles ,chemicals, electrical and electronics, textiles &garments, castings, and forgings, etc. with manufacturing units of Coca-Cola,Mercedes, Volks wagon, GM motors, Sandvik, Alfa Laval, Forbes Marshall, Bajaj, Tata etc.
  • IT Hub: Emerged as a prime hub for information technology and BPO industry.
  • Rapidly Developing Infrastructure: Due to the enduring support of the govt. It boasts of a highly developed infrastructure and has the tag of an advanced city.PMRDA is established now after a long wait, which will be responsible for the further congruent growth of expanding the city.
  • Prevalence of Education Institutes: A high demand for residential spaces has been experienced due to the 150+ odd institutes, 300+ affiliations and student from all parts of India and overseas coming here for studies, of course, It’s called Oxford of the east!
  • Pune Metro: The newly constituted Pune Metropolitan Region Development Authority (PMRDA) has proposed a Metro rail line from Shivajinagar to Hinjewadi even though the Pune Metro rail project to be implemented by Pune Municipal Corporation (PMC) and (PCMC) for other routes await the Union government’s nod for implementation.
  • Nagpur- Mumbai Express way: Pune may become part of Nagpur- Mumbai Expressway plan, as hinted by Union minister for road transport and highways Nitin Gadkari. It will reduce the travel time between Pune and Nagpur from the current 12-14 hours to 6-7 hours. Besides, it will connect the Vidarbha region with the IT hub in Pune.
  • Pune BRTS: Pune Municipal Corporation (PMC), Pimpri Chinchwad Municipal Corporation (PCMC) and transport utility Pune Mahanagar Parivahan Mahamandal Limited (PMPML) will soon launch BRTS operations on the 7.1km Sangamwadi-Vishrantwadi BRTS corridor in Pune, and the 14.5km Sangvi-Kiwale corridor in Pimpri Chinchwad.
  • PMC is all set with Rs 3,480 crore smart city plan (SPC), out of which Rs 1,035 crore is earmarked for pan-city development and Rs 2,445 crore for the development of Aundh-Baner that have been identified as an under- developed areas. The plan will be submitted to the Central Government for further approval
  • Maharashtra government is under the phase of finishing the policy which focuses on boosting the economy in the tourism sector. Some of the features of the policy are the introduction of a new category for ‘Ultra Mega Projects’ and a slew of fiscal and financial incentives. With the new policy, the government hopes to attract investments worth at least Rs 30,000 crore and create a minimum of 1 million additional jobs in the tourism sector.
  • Maharashtra state government new IT Policy is likely to boost demand for commercial and IT campus in Pune and Mumbai. The policy will include incentives such as additional FSI, exemption for IT/ ITeS companies from paying stamp duty, the power to such units at industrial rather than commercial rates, along with these additional subsidies on electricity tariffs and concessions on works contract tax and value added tax.
  • Bombay HC has put a stay on PMC’s decision to appoint a consultant for the smart cities project. The civic body was to pay a sum of Rs 2 crore to McKinsey & Company for preparing the plan in a time span of 100 days

These series of special events will make PUNE Realty robust than others!