Quick project approvals fuel Pune's real estate boom

The Pune real estate market, unlike Mumbai or Delhi-NCR, is dominated by end-users, not investors, says Ashish Jain, Director, Kundan Spaces, a leading real estate developer in the city. "So when markets crash elsewhere, the Pune property sector remains stable. Prices don't drop as drastically as they do in Mumbai or Gurgaon," he points out.
Jain expects the Pune property market to remain buoyant, thanks to the continued inflow of investments in the information technology and automobile sectors. Companies are pouring money into these sectors, creating thousands of new jobs. "These will drive demand for real estate over the coming years," adds Jain.
According to him, demand for space at IT parks far exceeds supplies in Pune. "The city is also an education hub and many people from all over India come here for pursuing higher education," he notes. NRIs from the Gulf are also major buyers and investors in Pune properties.
Asked about the state of infrastructure in Pune, Jain says it has improved a great deal in recent years. The Maharashtra government has also announced the setting up of the Pune Metropolitan Region Development Authority, which will be the town planning authority for both Pune and the twin city of Pimpri-Chinchwad.
The new BJP government in the state has also sped up the approval process and is pushing ahead with new infrastructure projects, he says. The Pune Municipal Corporation further fast-tracked the approved projects and has made the process online.
Jain, whose company participates in property exhibitions in Dubai, says that NRIs have been investing in his company's projects for several years now. Most of them have seen their investments soar, so they continue investing in new projects.
According to the developer, fast-moving properties are those in the range of Rs5 million to Rs6 million for a two-bedroom flat measuring between 1,000 square feet and 1,200 square feet.
But Pune has a wide range of properties, ranging from budget apartments to mid-segment ones, and even premium luxury flats.
"We have a premium project in Baner, where we offer a four-bedroom apartment with servant quarters for Rs30 million. The apartments feature top-of-the-line amenities and the project has been designed by an international architect," he says.
Kundan Spaces was established in 1986 and has executed several projects in Pune. It currently has eight projects on hand. The company plans to launch three to four more large projects this year. It has already taken up a 150-acre township project in Pune.

• India