Pune’s gets institutional investments of Rs 9,600 cr, student housing demand to grow 31% by 2023
New Delhi: Pune’s realty market received institutional investments of Rs 9,600 crore in the five-year period from 2015 to 2020 wherein office projects accounted for the highest share. The office assets got 49 percent of the overall institutional investments owing to high demand and low office vacancy of around 5 percent. The residential segment received 25 percent share of the total investments.
Pune has an off-campus student accommodation demand of about 1.6 lakh beds. This is likely to grow to 2.1 lakh beds by 2023. Employment of migrant millennials in the city is likely to grow fast and touch 7.3 lakh mark by 2023, according to a report by JLL.
Institutional investment pace picked up in the first quarter of 2021 but the lockdown during the second wave of corona led to a brief halt.
In the five year period from 2015 to 2020, foreign institutional investors (FIIs), mostly PE funds, dominate the deal volumes in Pune. They accounted for as much as 77 percent share of total investments. Many leading funds have taken office spaces to build a strong portfolio for listing through REITs. Global funds, on the other hand, have largely purchased office assets out rightly.
“Pune’s urban infrastructure is set to receive a major facelift with the planned metro network and the Ring Road. The city’s metro network is expected to go operational in the next 24 months. In terms of Ring Roads, the city is getting two of them, the first of the two is under Pune Metropolitan Region Development Authority (PMRDA) and is going to be 65 meters wide. The second Ring Road which is 110 meters wide is under Maharashtra State Road Development Corporation (MSRDC). The outer Ring Road is expected to be completed first before the inner Ring Road. On the outer Ring Road, we are also expected to see a new three strip greenfield airport coming up at Purandar for which land acquisition to the tune of 4000 acres is underway. The airport is expected to have one cargo and three passengers’ strips. This will be a bigger than Panvel or Mumbai airport. Panvel airport is also expected to provide a boost to the growth story of Pune. Further, the city’s advantage of talent, technology, industry, and connectivity will propel it towards becoming the next megacity of India. As the real estate sector grows in tandem and quality assets are developed continuously, the city is expected to provide huge opportunities for occupiers, developers and investors, across the globe,” said Sanjay Bajaj, Managing Director - Pune, Logistics & Industrial, JLL India.