While boutique towers may have a place in the market, large-scale developments spanning five to ten-acre plots are increasingly becoming the focus for multinational corporations, large private equity players, and corporate houses in Pune.
Amit Jaitly, Deputy Managing Director – Mid India at Colliers, led the conversation, highlighting the significance of Grade-A commercial developments, stating that well-managed facilities offer a major advantage compared to boutique towers. “Larger-scale commercial developments offer better prospects due to their scale, infrastructure, and location advantages, whereas in Pune, developments typically range from smaller boutique projects on one to two-acre plots.”
Multinational companies, private equity players, and corporate houses are driving the demand for larger office spaces in Pune. This brings to the fore the future of Central Business Districts (CBDs) in the city. Gopal Sarda, Founder & CEO of Vibe Realty, stated that land scarcity in CBD areas presents a significant challenge for further development. Land availability remains a key concern. The limited availability of land within city centres makes it difficult for developers to meet the growing demand for commercial spaces, forcing them to look beyond traditional CBD areas to meet market needs."
Ashish Madhav Malpani, Director of Malpani Group, shared his perspective on the high cost of land in CBDs. “Landowners in the CBD expect very high profits, and achieving rental prices of Rs 110 – Rs 120 per square foot in these areas is difficult for developers. However, as metro connectivity expands to areas like Hinjewadi, Kothrud, and other peripheral locations, the need to be located in the CBD is diminishing. The expansion of metro lines and the availability of larger plots in the suburbs are making these areas more attractive for companies, particularly in the IT sector.”
Jaiprakash P. Shroff, MD & Chairman of Shroff Group, agreed on the significance of metro extensions reaching Hinjewadi, a major IT hub in the city and Kothrud, an emerging commercial district. “With better infrastructure and connectivity, businesses no longer need to be confined to the CBD and are more likely to value access to modern infrastructure and large plots of land available in peripheral areas.”
Impact of Navi Mumbai Airport on Pune Real Estate
The Navi Mumbai Airport, which is expected to begin operations in the near future, will significantly reduce travel time between Pune and Mumbai, enhancing connectivity between the two cities. This major infrastructure development is poised to influence Pune’s real estate market by bringing greater accessibility and appeal to the city, opined Amit Jaitly.
Jaiprakash Shroff noted, “The availability of better connectivity via the new airport will drive demand for both residential and commercial properties in Pune, making it a more attractive destination for businesses, residents, and investors alike. Navi Mumbai Airport’s proximity—just one to one and a half hours away from Pune—makes it a viable option for business connectivity, including access to major transportation hubs essential for Pune’s continued growth.”
Ashish Madhav Malpani proposed that rather than focusing on building an airport in Pune itself, the city should prioritize faster road networks connecting Pune with Navi Mumbai. He emphasized that this would effectively resolve Pune’s connectivity challenges. Developers, policymakers, and local authorities must collaborate to ensure that improved connectivity aligns with the city’s broader development goals.
Better road access, combined with metro systems, will not only facilitate smoother transportation but also create new opportunities for both businesses and residents."
Pune's Investment Perspective
Pune’s real estate prices have been growing steadily, and the market has remained resilient even amid global challenges. According to Ashish Madhav Malpani, the demand for land continues to outstrip supply, indicating strong long-term growth prospects. “Pune is a beautiful city with consistent demand for real estate, and it will continue to rise. While there may be cyclical fluctuations, the long-term outlook for Pune’s real estate market remains positive,” he said.
Gopal Sarda observed that following the COVID-19 pandemic, there has been an increased demand for larger homes with better amenities. “The demand for bigger homes, especially those with quality construction, has driven up prices. Construction costs have risen as well, and with the shortage of labour and rising infrastructure expenses, prices are not likely to come down anytime soon.”
Jaiprakash Shroff shared that despite challenges related to land availability, high costs, and cyclical fluctuations, Pune’s market shows promise for sustained growth. The anticipated expansion of metro systems and the Navi Mumbai Airport will further bolster Pune’s position as a key real estate hub in India.
Amit Jaitly highlighted that Pune is currently experiencing a building boom, with developers focusing on high-quality, long-term construction projects. This emphasis on quality is contributing to rising property prices, as developers invest in premium materials and modern facilities.
While short-term price fluctuations are inevitable, Pune’s long-term prospects remain bright, driven by a thriving economy, improving infrastructure, and consistent demand for quality properties. Real estate investors and developers alike are likely to continue exploring Pune’s potential as a dynamic and profitable market.
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