It is estimated that in 2011, the service sector accounted for about 70% of the demand for commercial office space in the seven major Indian cities – Mumbai, NCR-Delhi, Bangalore, Chennai, Hyderabad, Pune and Kolkata – with the remaining 30% coming from manufacturing and other industries.
Some of the best areas in Pune to invest in commercial real estate include Magarpatta City, Kharadi and Kalyaninagar (for IT office space) and MG Road and Dhole Patil
The availability of skilled manpower supported by availability of cost effective commercial real estate – especially in terms of Grade A projects – continues to drive demand for office properties in Pune.
Much like in Bangalore, the primary catalyst for Pune’s residential real estate market are the Information Technology and Information Technology-Enabled Services sectors. The central parts of the city have more or less used up their development potential, and it is now in Pune’s secondary and suburban markets where the highest growth potential for residential property lies.
IT SEZ spaces in Pune accounted for approximately 66% of the total absorption in 1H11. Rentals remained stable despite strong absorption activity due to additions to office stock. Capital values registered a marginal increase in the CBD and SBD, compressing yields in these two micro-markets.