Demand for serviced properties rise in Pune

The real estate market in Pune, unlike in any other Indian city, has been witnessing sustained growth for well over a decade, says Atul Chordia, Director, Chordia Group.
"It has transformed itself from a retiree's paradise to one of the fastest growing cities in the country. The last 10 years have been golden when it comes to growth in Pune from all aspects - information technology, automobiles and real estate," he says.
Fortunately, this is just the beginning, he believes. The city has a new development plan for 20 years that envisages all-round growth.
The Maharashtra government has also announced the setting up of the Pune Metropolitan Region Development Authority, which has ambitious plans to invest in beefing up the infrastructure. There are plans for an excellent ring road covering all parts of the city, as well as a metro.
"From a real estate point of view, there are very few cities in India that can grow on all sides. Pune is one such city," says Chordia.

Atul Chordia, Director
Developments are occurring on the western side - which is closer to the expressway and Mumbai - where the sprawling IT park at Hinjewadi continues to attract investments. Similarly, the automobile and manufacturing sectors are also expanding in this part of the city.
The eastern parts, including Kharadi, are also witnessing rapid growth, he notes. "Pune will very soon emerge as a really large city. Indeed, in terms of geographical size, it will be larger than Mumbai," Chordia says.
Property prices in Pune have never crashed over the past decade, he adds. "We have seen very good times and great times, but not bad times," he adds.
Naturally, many NRIs - especially from the Gulf - have found Pune to be a very safe city for their investments. It is safe both for short-term investments and long-term ones, he notes. "I would say Pune is the safest and most reliable real estate market in the country," adds Chordia.
The proposed international airport at Panvel - less than a two-hour drive from Pune - will boost the real estate sector in the city. "Many Mumbai residents take more time to reach the Panvel airport, compared to residents of Pune," he points out.
Referring to the IT sector, Chordia says that besides all the top Indian software majors - including TCS, Infosys and Wipro - international biggies also have a strong presence here. Accenture, Deutsche Bank, Citibank and Cummins India have a huge presence in the city. In fact, Cummins India has put up a two-million-square-feet campus-cum-headquarter.
The rapid growth witnessed in Pune has attracted top international funds including private equity major Blackstone to the city, says Chordia. Blackstone has invested about a billion dollars in the Indian real estate sector, acquiring office space and IT parks in cities such as Pune and Bengaluru.
The Chordia Group operates under the Solitaire brand in the property market. The company has three major verticals: commercial parks (under the Solitaire Business Hubs brand), premium luxury residences (Solitaire Homes) and serviced apartments (Solitaire Studios).
While the group has a presence in other cities, its primary focus is Pune. It has so far developed about a million square feet of real estate and is currently executing projects adding up to 2.5 million square feet. "Over the next 12 months, we will be taking up another four million square feet of projects in Pune," says Chordia.
"We feel there is huge demand for serviced properties here and it fits with the NRI investment plans," he explains.
Chordia participated in a property exhibition in Dubai recently and was amazed at the tremendous NRI response. "We featured just one of our 11 projects in Pune at the exhibition, but we had an overwhelming response," he says.
About a hundred NRIs are currently negotiating with the company. "Even if this results in 20 conversions, it would be remarkable for a single project," adds Chordia. "This means we have the right product to cater to the demand from NRIs in Dubai."
The company was promoting its Solitaire Business Hub at Yerwada in the heart of Pune. It comprises three, 20-storey towers - a commercial tower, corporate tower and serviced apartment building.
"The project is located in Pune's central business district, and is very close to the airport, and projects in the neighbourhood include Trump Towers, Ritz Carlton, IBM's 1.2 million square feet main campus, and a huge Deutsche Bank facility. Besides, there are half a dozen five-star hotels within a two-kilometre distance from our project," Chordia adds.
NRIs can invest in office space starting from Rs7.5 million and the company guarantees an annual yield of six per cent for two years. Solitaire will maintain the property, lease it out, and even sell, if the owner wants it to be sold.
Serviced apartments and offices are ideal for NRIs, who do not want to bother with maintenance and management of the properties, says Chordia. They prefer committed rentals and a professional brand taking care of the property.

• India