Pune and Hyderabad Office Markets Note Healthy Development in 2015

Market sentiments in the corporate real estate space of Pune and Hyderabad remained positive throughout 2015, which was reflected in their healthy growth rates for the year. While transaction activity in the office markets of the top three cities of Delhi NCR, Mumbai and Bangalore clearly cornered the market, significant development was also noted in the office markets of Pune and Hyderabad. Both noted a healthy demand/supply scenario during the year. 

Pune’s SEZ Rentals Likely to Rise by 20–25% in 2015

City expected to face shortage of new SEZ space in the medium term

Pune’s Grade A commercial office real estate market has been increasingly attracting the attention of major office space occupiers as a second option to Mumbai, because of its freshly available quality space options, comparatively affordable rental rates, as well as its proximity to and excellent connectivity with India’s financial capital. 

Nearly 80% of Global Retail Brands Enter India through New Delhi

Followed by nearly 70% preferring Mumbai as their entry option

The expanding retail footprint of global brands in India has been a major growth driver of retail real estate in the country. In an effort to map and analyze the spread of international retailers, CBRE undertook a research study of more than 300 prominent global retailers—Expanding Horizons of Global Retailers in India—to identify operating trends, expansion strategies, and extent of penetration across leading cities. 

What Is Driving Pune’s Realty Market?

Studying the city’s real estate development for the way forward

A burgeoning automobile ancillary industry and the IT/ITeS sector’s growing presence have been the major growth drivers behind the notable transformation of Maharashtra’s second largest city—Pune. Over the past couple of years, the city’s IT sector in particular has seen significant growth, leading to sustained demand for office space in the city. The State Government of Maharashtra’s initiative to promote Pune as an IT/ITES destination; and promoting the Rajiv Gandhi IT Park (Hinjewadi) as an IT/ITeS knowledge center by acquiring large tracks of land and inviting large Indian MNCs such as Wipro, Infosys, and TCS, in the early 2000s set the tone for the city. Today with quite a few global majors having set up base here, Pune is home to several major IT parks

Pune sees highest office space addition in Q4, 2013

Close to 7.3 million sq. ft. of office space supply entered the market in Q4 2013, as compared to less than 3 million sq. ft. in Q3 2013. This was led largely by a number of commercial and SEZ developments that had been delayed over the previous two quarters, and were finally completed in Q4 2013. Pune led these project completions, followed by Bangalore and Hyderabad—together contributing to about 71% of the total new supply in India’s top office markets in the last quarter of 2013.