The rapid rise of the automobile and IT/ITeS sectors have been the major growth drivers for Pune city; and have led to a massive transformation of the city. Over the past few years, the city’s IT sector has seen significant boom, with global majors setting up offices here and leading to a sustained demand for IT parks and office spaces. The burgeoning CRE hotspots of the city include:
- Hinjewadi: One of most the preferred office destinations in Pune, the setting up of the 2800 acre Rajiv Gandhi Infotech Park, led to the advent of several IT/ITeS giants such as TCS , CTS, Infosys, Capgemini, Wipro etc. Hinjewadi has witnessed the development of several IT/ITeS SEZs and standalone office buildings, offering adequate floor plates and world-class amenities. The ease of access has been boosted by factors such as low rentals, with average rental values in the range of INR 38-50/sq.ft per month, and a total office space stock of approximately 12.8mn.sq.ft.The future of Hinjewadi looks promising with an expectancy of robust demand for office space.
- Nagar Road (Yerawada-Viman Nagar-Kharadi stretch): Nagar Road, towards the East, is considered to be another prominent office destination in Pune. This stretch of road houses a number of important office projects at locations such as Kharadi, Viman Nagar and Yerawada. Owing to the increase in demand for office space in the eastern part of Pune and the rising rentals in adjacent CBD locations, it has been chosen by a large number of key IT/ITeS players, along with numerous small and mid-sized IT/ITeS companies. Currently, the office space inventory on Nagar Road totals up to approximately 12.4 mn.sq.ft., with average rentals in the range of INR 50-85/sq.ft. per month. There is substantial potential for the office market to thrive in this region, with the advantage of being in the vicinity of affordable residential markets, as well as the Pune airport.
- Hadapsar: Hadapsar, located towards the eastern part of the city, evolved post the launch of the 600-acre Magarpatta City, which soon became a prominent hub for several IT giants. The region is predominantly driven by the IT/ITeS sector with a number of residential localities in close proximity. At present, Hadapsar offers a total office stock of approximately 6.9 mn.sq.ft, with rental values in the range of INR 65-80/sq.ft. per month. The presence of several residential options in the neighbourhood along with Amanora Park Township, bodes well for Hadapsar office market. The airport is also located in relative proximity to the region, which boosts its connectivity to a great extent, making it one of the most promising hotspots.
Pune has emerged as one of the fastest growing cities in the APAC region with good connectivity, infrastructure, lower rental values, social infrastructure (healthcare, educational institutions, recreation options). Going forward, the city’s office market will continue to remain upbeat, the demand primarily fuelled by the IT/ITeS sector, while substantial demand from co-working operators and logistics & warehousing companies are expected to firm up in the short to medium term.