Strong Leasing Of Commercial Real Estate To Revive Pune’s Residential Real Estate Market: CBRE

Mr. Steve Swerdlow, CEO, Asia Pacific, CBRE and Mr. Anshuman Magazine, Chairman, India & South East Asia, CBRE, inaugurate PropFair

Pune, February 24, 2017: CBRE South Asia Pvt. Ltd, one of India’s leading real estate consulting firms,organised the sixth edition of CBRE PropFair 2017 in Pune. This is the third edition of the event in Pune, which has been organized at Deccan College ground.  Identified as one of the top 20 cities under the Smart Cities Mission by the Government, Pune is emerging as a key destination for real estate investment and development.  The event was inaugurated by Mr. Steve Swerdlow, CEO, Asia Pacific and Mr. Anshuman Magazine, Chairman, India and South East Asia, CBRE. Other dignitaries at the event included Satish Magar, Managing Director, Magarpatta and Sameer Mutha of Mutha Group Developers.

Highlights of Pune PropFair:

·         More than 5000 footfalls on day one

·         Close to 12,000 footfalls expected during the 3 day event

·         Participation of top 70 developers from Pune and Mumbai

·         300 residential projects showcased

·         Top financial institutions represented

 

Speaking on the sidelines of the PropFair, Mr. Anshuman Magazine, Chairman – India and South East Asia for CBRE said, “The strong leasing activity in Pune’s office segment, coupled with current and planned infrastructure development is providing a much needed thrust to the residential real estate market. Post demonetization and the implementation of various government initiatives, we can expect key segments of the city’s residential real estate market picking up in the near future.”

Thanks to the city’s strong IT/ITeS and industrial activity, high employment levels and overall positive dynamics investment grade office space has witnessed significant growth over the past few years. This coupled with a robust retail growth, is helping fuel the revival of the residential real estate market in the city.

Other key factors helping the city become a preferred location of residential development include close proximity to major IT/ITeS hubs and key infrastructure projects including the Mumbai-Pune Expressway and Pune-Bangalore Expressway. Proposed infrastructure initiatives including the development of an international airport, the Pune Metro, and building of flyovers and underpasses will have a positive impact on the real estate market.

The recent demonetization drive, coupled with existing inventory and cautious buyer sentiment did have an impact on residential demand in the city. However, with increased transparency coming into the sector and the recent policy initiatives including implementation of RERA and affordable housing receiving infrastructure status will give a necessary boost to the segment in the city.

Elaborating on the potential of the city, Mr. AS Sivaramkrishnan, Head of Residential Services, CBRE India said, “In the coming year, Pune is expected to witness an overall stability in housing sales. Increase in demand in the high end / mid end and affordable segments, besides a relatively larger presence of end use buyers is expected to revive the decline in sales by the second half of the year here. ”

Due to the recent demonetization drive, going forward, Pune’s residential real estate market will be driven by end- user purchase rather than investment in the coming months. With a view to reducing inventory and spurring sales, developers will consider rejigging their marketing strategies by including flexibility in pricing schemes and payment structures. With the various government initiatives being implemented, Pune’s real estate market is expected to witness positive movement in the coming year.

 

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.​

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Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.​

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