With the economy once again shifting into high gear, all eyes are once more turned to India’s most promising retail markets. Pune is again in sharp focus by retailers because of its continued favourable demographics and generous availability of investment-grade retail space. As we take stock of the city’s retail potential towards the close of 2014, we are seeing a very convincing return of demand for retail spaces in most areas.
The Indian monsoon months are synonymous with low activity in real estate, but this year witnessed considerable amount of activity in the office sector. Compared with last year’s monsoon months of July, August and September (3Q CY 2013), this period in 2014 showed 58% growth in office space demand. A net absorption of 9.3 million sft (or 93 crore sft) of office space during 3Q CY 2014 is a good 1.58 times the same seen in 3Q 2013. This performance for a quarter’s net absorption was bettered only once in the year 2011.
Leading international property consultancy JLL India has closed a landmark joint development deal between Bangalore-based Puravankara Projects Limited, Pune-based Oxford Group and Mumbai-based EKTA World, who will jointly develop close to 30 acres of prime residential land in Mundhwa, East Pune.
The ugly caricature of Indian real estate as an industry controlled by corrupt despots is naive, hopelessly outdated and extremely damaging to the country’s global image as a thriving economic dynamo. The fly-by-night players who were responsible for this image are still around, but their ranks are rapidly decreasing. In the meantime, it makes absolutely no sense to paint every real estate developer with the same brush. Most large listed real estate developers in India today have wholeheartedly embraced the mantra of complete transparency.
Real Estate Monitor is out for the month of November, 2014. Get the market highlights of the top eight cities of India.