Is Pune the hottest new IT hub in India? A couple of decades ago, one would have only heard of Pune as a city famous for its historical monuments, and as a hub for education. So what brought so much commercial property investment in Pune? Today’s blog shall address this question with respect to Pune being one of the upcoming business hubs of India. There has been an extrem growth for the demand of commercial properties in Pune, thanks to a collective’s efforts such as a growing economy, heavy concentration on IT enabled services, advancement in infrastructure, very progressive and able policies of the government, trained staff, decent living standards, creative designs in real estate, and much more. So what exactly is the defining factor and the magnifying pinpoint for such growth of demand for commercial properties in Pune.
1. Growth and Stability in the Economy
Pune is quite dynamic when it comes to the economy and it is one of the factors behind the growth of commercial property in the city. The city is one of the most industrialized in the country, with major industries being manufacturing, information technology (IT), automotive, and education. Economic diversification thus provides the degree of security that enables many businesses to set up offices, big or small, in Pune. Furthermore, with the increasing purchasing power of Pune’s people, consumer spending has increased which in turn has created a need for more retail and commercial space. The rapid growth of professionals has also been a significant factor for the growth of businesses.
2. Successful IT and ITES Industry
Hinjewadi, Magarpatta City, and Kharadi have emerged as prime IT zones and numerous multinational companies and tech parks are located there. Such increase in the numbers of IT companies has elevated the demand for office space and subsequently, considerable development of commercial property took place. So also, the growing nausea of startups in Pune is one of the other markets of the commercial properties. Nowadays, the city has joined in the rank of communities favorable for positioning of start-ups because of existence of funding, mentorship and talents. This ecosystem has been helpful in establishing many co-working spaces and business incubators.
3. Well Configured Framework
The growth of the commercial property market in Pune owes a lot to real estate infrastructure development in the city. The integration of an interstate highway system with a network of flyovers and mass transport has changed the city’s transportation landscape. The Pune Metro, which is expected to improve the intra-city movement of people, is likely to further increase the demand in the commercial real estate space.
4. Policy and Government Steps
There are various schemes of the government that helps to ease the business in Pune. The government policy and initiatives support the development of business and commercial property. With the introduction of the Real Estate Regulatory Authority (RERA) and the implementation of the Goods and Services Tax (GST) there have been increasing confidence and increased transparency in the real estate market. This has led to the establishment of Special Economic Zones (SEZs) which has increased the interest to invest in key location in Pune. SEZs provide a constellation of benefits, such as tax reductions and relaxation in regulations that makes it easy for businesses to establish a presence in the region. Such areas have been ideal for rapid growth of commercial property appealing to both the local and offshore investors.
5. Educational Institutions and Skilled Workforce
The presence of a skilled workforce in a city or region is an important factor and can influence the market for commercial properties. As Pune is also a renowned educational centre, it has an impact on the market for commercial property in Pune. The city has some of the well-known educational institutions in the country such as Savitribai Phule Pune University, Symbiosis International University, and the College of Engineering Pune. The graduates from these institutions provide plenty of workforce and hence Pune becomes an appealing option for companies that are in search of professionals.
6. Quality of Life
As such it is no surprise that Pune scores high when it comes to standards of living with its mature environment comprising of climatic conditions, vegetation and even its crime rates, all add to its growth. This standard of living in Pune serves as an attraction to professionals as well as their families increasing the need to establish more and more facilities such as malls, and hotels as well as places for leisure activities such as parks and movie theatres. Also, the employment opportunities coupled with the distinctive culture and leisure activities on offer in Pune further interesting making it a Dream Location for several.
7. Mixed-Use Developments
The shift towards that idea has become noticeable within the boundaries of Pune towards the middle and end of the last decade. Integrating various concepts, the functions of the projects interlink with one another including residential areas, business sectors, and recreation opportunities. Offering a ready market and an active setting, mixed-use developments are of interest to the proprietors.
8. Righteous High Return on Investment
Investment in Pune’s commercial real estate market will yield a higher ROI than other locations. The continuous increase in property prices, together with high demand, makes it a prominent area for investment.
Conclusion
Those who intend to invest in a commercial property in Pune should excitedly rub their hands as Mundhwa office space should be the most.
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