The Hindu Business Line : As Pune grows, its realty can’t lag behind

Pune can no longer be described as a pensioner’s paradise. It is bubbling with energy and has blossomed into a major IT and automotive hub, not to speak of its educational institutions, service industries and hospitality. Pune Tithe Kay Une -- meaning nothing is less in Pune, always a plus; that is how one can best describe the growth of Pune. While it is fondly described as the Oxford of the East, it is also an automobile city with the Tatas and Bajajs and global ma jors like General Motors and Volkswagen setting up shop. With all in this, it has become the most sought after place after Mumbai in terms of real estate.

Retaining its strong traditional and cultural roots, Pune has not looked back when it comes to welcoming new technology. The growth has come mainly due to its proximity to the country’s financial capital Mumbai -- about two-and-a-half hours drive by the Expressway. Good railway connections and an international airport are all reasons for its growth.

According to Ms Kruti Jain, Executive Director, Kumar Builders, “I remember a few colleagues visited me from Bangalore and called Pune a small town five years ago in comparison to Bangalore. Today even they can’t ignore Pune - as competition nor as a business opportunity. The fact that names like Infosys and Wipro, which are synonymous with Bangalore, have chosen Pune to be their largest recruitment and operating centres for the future speaks a lot in itself.” “In terms of real estate market Pune is second to none. The opportunity and foreign funds interest in the city is only growing. I think connectivity has played the most important role,” Ms Jain says. Among the fastest growing cities in India, Pune enjoys various advantages such as good climate, rivers, forts, lakes and cultural legacy.

Pune has witnessed constant industrial development. Auto clusters always preferred the city as the best manufacturing region. IT is one sector that is growing rapidly. Today one will not get a single piece of land in Hinjewadi. Exports from Pune have reached billions and are rising further. Job opportunities are aplenty with creation of one lakh a year. Ms Jain points out that Pune has already incorporated the fringe areas and is growing in a decentralised fashion in all four directions. But the infrastructure needs to move at the same pace.

Pune has dynamic leadership both in the public sector, and the private. PMC that is Pune Municipal Corporation has received an award for having the most sophisticated IT ERP system for sanctioning of development plan. ``But the expectation is to get a better deal to Pune from the State Government. We need a better policy framework by which we can provide cheap and quality housing consistently,” she saysMajor area of quandary is traffic and roads, but steps have already been taken to improve the conditions Interaction with tram service providers in Bremen (Germany) is going on.

Some of the initiatives include a Metro service where both the corporations, PMC and PCMS (Pimpri Chinchwad Municipal Corporation, the sister city) have initiated discussions. With all these major developments happening, how much of land is available in the city for construction? Ms Kruti Jain notes that land is available in plenty- but land is frozen under development plan, which is not passed.

So when it will be ready for development is a question mark.

“If you want to compare land availability, here is an analogy. Pune is a little smaller than Singapore itself and Singapore is a self-sustaining economy for which real estate is an important industry for its growth, growing at a consistent rate! So saturation point is not even close.”

According to real estate sources, for the growing demand of IT sector there is a requirement of around 5,000 acres of land.

Since the IT Park in Hinjewadi is full, the real estate people are scouting for land in the vicinities on Ahmednagar road and Lohegaon.

MIDC (Maharashtra Industrial Development Corporation) has already begun the task of identifying various locations.

So what would be the requirement in both commercial and residential spheres? Ms Kruti Jain says there is demand for one lakh houses but the supply is only 35,000.

Real estate sources also point out that various demographic studies indicate that population in urban cities will double by 2025 while Pune’s population would double in the next 15 years.

One of the concerns amid this hectic development is how the infrastructure is going to maintain itself, in terms of water, power, transportation, roads.

All these aspects need to be properly managed. Most of the cities are conscious about this. One of the role models that can be duplicated is that of Hyderabad. They note that it is one city which has focussed planning about infrastructure.

“But how to acquire these changes in reality depends upon political leadership, supported by effective role of administration.”

“At present we are hampered by coalition politics. That is a big setback. Our political parties need to rise beyond partisan politics. And concentrate on what the city needs now and in future,” the sources add.

Yes, Pune’s future is looking bright with many of the MNCs and other organisations setting up shop. But consumers are waiting to see how the basic requirement of housing will be met.

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