By Soniya Gaonkar on Feb 18, 2022 12:41:00 PM
While a commercial property in the financial capital of India still remains the dream of almost every investor, lately, the focus seems to have shifted to Pune, Mumbai’s eastern neighbor. Pune has been attracting commercial investors of all types, from those investing in small shops to large showroom spaces. But what caused this shift to Pune, which was an average city from the real estate perspective a few years ago? Why should you choose Pune over Mumbai for commercial real estate investment? Let’s find it out.
4 Reasons You Must Choose Pune Over Mumbai for Commercial Real Estate Investment
From considerably low per square feet cost to being the next investment destination when it comes to business opportunities, Pune outranks Mumbai on many fronts. Let’s look at four of them.
1. Per Square Feet rate
Practically, comparing Mumbai and Pune is like comparing an apple with an orange. Both these cities have their unique significance. Pune isn’t like Mumbai. It is way different across every aspect from culture to commercial opportunities. As the financial capital of India and a commercially significant city for centuries, Mumbai is a different ball game altogether when it comes to commercial real estate.
Nevertheless, from the RoI perspective and getting more from less, many investors now prefer Pune. One of the first reasons is the per square feet rate in Pune, which is way lower than Mumbai.
For instance, let’s compare (only for the price sake) the rate between Worli, which can be considered Mumbai’s downtown or the city’s bustling commercial center, and Deccan, which is Pune’s financial district. The approximate range in Worli ranges from INR 22,000 to around INR 36,000 square feet. But when it comes to Pune, the rate falls in the 15-20,000 INR per square feet range.
(Note – The above per square feet figures are approximate and may vary)
Although Worli is way bigger than Deccan when it comes to business opportunities, Deccan holds a significant amount of promise within Pune’s context. Similarly, places like Pimpri Chinchwad, Shivaji Nagar, Koregaon Park, etc., aren’t any less either. Each has its geographic, strategic, and commercial advantage.
2. Geographical Advantage
A real estate commercial investment in the much calmer and cooler yet promising business destination like Pune has a strategic advantage associated with it.
For companies that target Maharashtra’s interiors, Pune proves a better option, as it is well-connected through various state and national highways. Reaching Mumbai isn’t only time-consuming but dealing with the high traffic levels and long distances within the city is a herculean task. Despite Pune’s high traffic levels, commuting within the city, for example from the airport to the downtown or PCMC, is yet feasible.
However, it isn’t only businesses targeting the interiors of Maharashtra that invest in Pune. The presence of various IT companies, global banks, and manufacturing companies makes Pune an amazing place for consultants, outsourcing organizations, financial management firms, etc. Consequently, it refers to lucrative investment opportunities for commercial investors, who look forward to leasing their property.
3. Availability of Resources
Many businesses prefer Pune over Mumbai owing not only to the low real estate costs but also due to the low employment and operational costs. This preference is in a way linked to commercial investments. The abundant availability of qualified resources, lower employment costs (average salary in Pune compared to Mumbai is lower) and reduced operational costs urge many companies to set up their business in Pune.
That, in turn, refers to a potential investment opportunity, as investors are pretty sure that their space wouldn’t remain empty for a long time. Businesses would get what they want from a particular location and they’d operate successfully and sustainably here. Although yes, the location matters. Smart locations like Pimpri, Chinchwad, and other growing vicinities such as Kharadi, Viman Nagar, etc. are likely to get a higher preference from businesses looking for the location advantage.
4. Steady Growth
Pune is a steadily growing market. Once again, there’s no comparison between both these cities, even when it comes to returning on investments. Mumbai has always been a larger market. But it is also an excessively expensive investment hub. The investment cost, as we saw earlier, is way higher than Pune.
For every investor, no matter whether small, mid-sized, or a large one, what matters, in the long run, is how sustainable is the return on investment. Pune, with its gradual yet promising growth, precisely offers that. It is projected to continue growing and sprawling on the commercial front for many years. Besides, the development of commercial hubs in Pune is another indication of the city’s potential growth in the future.
Related Post - Growth of Commercial Real Estate In Pune
Kohinoor World Towers: A Strategically Advantageous Investment – Tower 3 Already Sold Out!
Kohinoor World Towers is a prominent business landmark under development. The project is situated in PCMC, between the two towns of Pimpri and Chinchwad on the arterial old Mumbai Pune highway.
KWT offers offices of varying sizes meant for various types of businesses such as consulting, IT, finance, outsourcing, retail, restaurants, etc. It offers a strategic location and commercial advantage due to the ultra-modern office spaces it offers. Recently, the project’s Tower 3 got sold out.
To know more about KWT or to connect with KWT’s sales team, call +91-020-6764 1818.