INRnews - Indian Real Estate News

The IT/ITES sector has been expanding rapidly in Pune driving demand for both commercial as well as residential real estate. IT major Infosys recently announced the opening of the first of two new buildings at Hinjewadi. The 5-storey building will cover 1.5 million sq.ft. and seat 2,000 people. Infosys also has 55 hectares in Pune only half of which has been developed and staff strength for the company in Pune has crossed 11,000.

Baner in the west of Pune is seeing an influx of IT professionals drawn by its proximity to Hinjewadi IT Park. This is driving up real estate prices. A flat in Baner that would have cost Rs.1,700 per sq.ft. a year ago is now going for Rs. 2,500 per sq.ft.

The Kharadi area in the east of Pune is growing rapidly with IT companies and real estate developers attracted by its proximity to Koregaon Park and Kalyani Nagar. Citigroup and Gera Developers recently announced a JV to develop an Rs.550 crore residential and commercial property in the area.

Other areas seeing real estate appreciation in Pune include Wakad, Pimple-Nilakh and Pimpri-Chinchwad. Prime Properties recently announced the purchase of a property in Pimpri Chinchwad, Pune - Mumbai road. The company plans to develop a 400,000 sq.ft. mall catering to residents of the Pimpri Chinchwad area as well as IT professionals in Hinjewadi.

Infrastructure development has however not kept pace with the frenetic residential and commercial development. The Pune Municipal Corporation is moving slowly on its Integrated Road Development Project. As an example only 25% of the work on the Baner road has been done so far. 

With real estate prices increasing, the consumer price index in Pune has increased from 467 points to 504 points during July 2005-2006, the highest increase of seven cities including Delhi, Mumbai, Hyderabad, Bangalore, Ahmedabad, Chennai and Kolkata.