PUNE - COMMERCIAL REAL ESTATE MARKET Overview 2014

Mr. Sanjay Bajaj, Managing Director – Pune, JLL India

While the residential real estate market in Pune is definitely slow this year, the demand for office space has been more upbeat over the past two quarters. Out of the total supply of 54 million sq. ft. at this point in 2014, 12 million sq. ft. are currently available for absorption.

Pune has seen marginal but satisfactory growth in the office space market over the last two years. In 2013, the absorption of office space in Pune clocked in at 4.5 million sq. ft., similar to the preceding year but marginally short of the estimated 5.1 million sq. ft. mark. Pune currently has 20% of vacant Grade A office stock available for absorption.

Mr.Sanjay Bajaj, JLL India

The fourth quarter of 2013 saw an addition of 7.3 million sq. ft. of office space, significantly higher than the 3 million sq. ft. added in the preceding quarter.

Of this, Pune contributed almost 30% followed by Bangalore (26%) and Hyderabad (15%). Higher vacancies and lower demand levels have resulted in the delay in the delivery of a significant number of projects in the eastern corridor.

LOCALITY		RENTAL RANGE IT RENTAL (Rs./sq.ft.)		RENTAL RANGE NON-IT RENTAL (Rs./sq.ft.)
Aundh		60-70		60-75
Baner		40-55		50-70
Bund Garden Road		50-70		70-110
Hadapsar		40-60		40-70
Hinjewadi		30-45		45-60
Kalyani Nagar		45-55		55-105
Kharadi		35-45		50-60
Nagar Road		40-50		45-70
Viman Nagar		40-50		45-70
Yerwada		45-85		53-64
Shivaji Nagar		60-90		65-150

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