14.7.11

Pune realty

Its proximity to India’s financial capital Mumbai has led to substantial spillover of real estate demand in Pune, thereby accelerating activity in the region, says a new report on Pune’s commercial real estate market. Traditionally known as the Detroit of India for its stronghold on the automobile industry, Pune has of late emerged as a preferred IT/ITES destination of India, said the report prepared by global property consultant firm Knight Frank India. “The office market in Pune has evolved primarily due to the growth of the IT/ITES sector in the city. While a number of industries like manufacturing and engineering have their stake in the economy of the city, it is the IT/ITES sector that has predominantly been the driving force,” said the report. Hinjewadi in the west, and Viman Nagar and Hadapsar towards the east are some of the prime IT/ITES office markets in Pune. Between January and June, 2011, the IT/ITeS sector was responsible for around 73% of the total office space absorbed, followed by the manufacturing and engineering sector which contributed about 8.5% and 8.6% respectively. “Pune is known for its educational institutions and is the eighth largest urban agglomeration in India. The Mumbai-Pune Expressway, which connects both the destinations, has made Pune a much sought after destination for out of town investors. In present times, Pune is one of the leading software exporters in India,” it said. These factors have fueled development of Grade-A office space in the region. Locations like MG Road, Deccan, Camp and Bund Garden Road form the Central Business District (CBD) of the city while other key office markets include Kalyani Nagar, Viman Nagar, Aundh, Kothrud and Baner in the suburbs. “New office developments are being witnessed in peripheral and suburban locations providing quality built-up space, which includes columnless spaces, large floor plates, ample parking area, etc. A number of prominent IT projects have come up in regions like Baner, Kharadi, Phursungi and Bavdhan as well,” said the report. The office market in Pune recovered in 2010 and leasing activity increased with IT/ ITeS sector taking up new office space. In 2010, out of the total 3.54 million sq ft absorbed, about 77% was absorbed by the IT/ITeS sector. Key transactions were led by companies such as Synechron, Persistant, Tech Mahindra, HCL and Syntel. Some of the prominent consulting companies which took up office space in the city in recent months include PWC in Yerawada, KPMG in Bund Garden Road and Capstone on Airport Road.

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