by Sanjay Bajaj, Jones Lang LaSalle India
* Ø Pune Residential Real Estate In 2012..!
The
prices for houses in Pune city moved up by an average of 12 %. Average
appreciation in 2013 will be between 12 to15 % across the city. Hinjewadi,
Kondhwa & Undri contributed almost 40 % of the total sales in 2012.
There
was a reduction in number of new launches in 2012, but supply increased in the
middle budget segment (Rs. 50 lakh to Rs. 1 crore) and the luxury segment (Rs.1
crore and above) across the city.
This
trend will continue in 2013. 2012 also saw an increasing supply of units in the
super luxury segment (Rs. 4 crore & above), predominantly in the Eastern
corridor (Boat Club Road, Koregaon Park, Kalyaninagar & Vimannagar).
 |
| Sanjay Bajaj, JLL India. |
A
growing number of local entrepreneurs are further fuelling the growth of the
super luxury segment. Developers in the super luxury segment are offering lot
of value - addition in projects that have international tie ups, such as with
reputed global developers (Panchshil – Donald Trump), international
architectural firms and international designers.
Such
tie-ups have increased the emphasis on detail in the projects, and to improve
technical parameters.
Pune Residential Real Estate - Outlook For 2013..!
Generally,
residential property buyers in Pune are now concentrating on location, developer
reputation, pricing, amenities and specifications as well as completion
schedule.
The
weightage given to each or combinations of these priorities varies. However,
the least level of flexibility is evident on the location and pricing
fronts.
The
demand for residential property in Pune continues to be massive in 2013, but
this demand is driven throughout by intelligent decision - making. As a rule,
most of Pune's house buyers know that they have options, how the market is
currently behaving and how it is likely to behave in the foreseeable future.
Pune
was one of the best-performing markets in 2012, which was by all standards a
challenging year for most cities. Given that the market drivers that made this
happen are still very much in place, this trend will continue in 2013, as
well.
The
available inventory in 2013 is equivalent to almost 9 months’ stock, which
indicates a very healthy absorption level in the city.
In
2013, Pune will see stronger demand from IT / ITeS and manufacturing sector
employees, Mumbai-based investors & NRI clients who are looking to invest
in stable markets.
Among
the developers who will be launching residential projects in Pune during 2013
are ABIL, Kumar Properties, Kalpataru, Tejraj Developers, Urban Lifestyle and
Urban Homes.
Pune Residential Real Estate - COMMERCIAL
REAL ESTATE..!
Ø * Commercial Space Absorption In 2012
In 2012,
the total absorption of commercial real estate in Pune clocked at 45 lakh
square feet, which was an increase from the absorption of 40 lakh square feet
in 2011. The region-wise absorption break-up was:
· Pune
West: 23 lakh square feet (51 %)
In
terms of commercial real estate asset classes, SEZs accounted for an absorption
of 17 lakh square feet (38 %).
Non-IT
commercial spaces constituted 90,00 square feet (20 %) and STPI spaces for 19
lakh square feet (42 %). Pune's total absorption of IT / ITeS real estate in
2012 was 36 lakh square feet, or 80 % of the total absorption in the city. This
represented a decline from the 83 % noted in 2011.
Ø* Office Rentals Movement In 2012
In
2012, the weighted rental rates in Pune rose by 18 to 22 %, largely as a result
of a constraint in the supply pipeline of Grade A office spaces available in
the city across all asset classes.
Rentals
in the Central Business District (CBD) – comprising
of Koregaon Park, Camp, Wakdewadi, Shivaji Nagar and Senapati Bapat Marg -
rose by 16 %, while rentals in the Secondary Business District (SBD)
- comprising of Viman Nagar, Yerwada (off Airport Road), Hadapsar,
Baner, Aundh and Bavdhan - and the Peripheral Business District (PBD) -
comprising of Hinjewadi, Bhosari, Kharadi and Phursungi - rose by nearly 25
%.
Ø * Office Space Demand Scenario In 2012
In
2012, demand for commercial real estate in Pune was primarily focused on the
SBD, which accounted for 24 lakh square feet of the overall demand within the
city.
The
PBD saw decent action as well, accounting for 16 lakh square feet. In
particular, Hinjewadi saw a high level of demand as it catered to the larger
requirements of corporate occupiers.
Pune
saw a large number of occupiers relocating from their existing offices and
moving into larger setups in 2012. Most of the absorption in the city was a
result of such expansion moves by occupiers.
Thanks
to the diversified profile of Pune's commercial real estate market, the city
saw traction not only from IT / ITeS firms; there was also a considerable
amount of traction from BFSI clients as these firms actively ramped up their
presence and manpower headcount in Pune in 2012.
Pune Residential Commercial Real Estate Outlook For 2013..!
Given
the diversity of office space demand, which encompasses the IT / ITeS,
manufacturing, automobile and BFSI sectors, Pune will continue to account for
healthy commercial real estate absorption in 2013.
While
office space demand across India saw a 16 to 18% dip in 2012, demand in Pune
surged upward by 6 %. This clearly signifies the confidence and intent that
clients have shown towards the city.
The
massive display of investor confidence seen in the city during 2012 will
continue to be a driving force in 2013, as well. Jones Lang LaSalle is actively
managing a large number of investment transactions coming from HNIs and
institutional investors, who are trading enthusiastically in commercial assets
because of the attractive valuations.
Office
space rentals in the non - IT commercial property asset class are likely to
stabilize after the 2nd quarter of 2013, thanks to the influx of fresh stock -
especially in the Eastern corridor. SEZ rentals in Hinjewadi are expected to remain
stable, since considerable supply is slated to hit the market there in the
second half of the year. On the other hand, rentals for commercial office
spaces in STPI projects are expected to increase because of the limited supply
of Grade A office spaces throughout the city.
About the author..!
Mr. Sanjay Bajaj is Managing Director -
Pune, Jones Lang LaSalle India
Contact: Ph: +91 20 4019 6100
Email : sanjay.bajaj@ap.jll.com
Media Condtact..!
Mr.
Arun Chitnis , Assistant Vice President, Marketing
Jones Lang
Lasalle India,
Level 6, Amar Avinash Corporate Plaza
Bund Garden Road, Pune - 411 001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9322738464
Bund Garden Road, Pune - 411 001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9322738464
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