By Prasanth Gopinath on Jan 17, 2024 11:34:13 PM
It goes without saying that Pune has always been one of the most preferred residential locations because of its pleasant weather. What has changed recently is the fact that Pune is now both - the most preferred residential and commercial destination as well. Albeit, because of different reasons. The emergence of IT hubs has worked wonders for Pune, giving it a magnetic effect of attracting skilled professionals from all corners of the country. The demand for commercial property in Pune has grown exponentially, and rightly so. After all,, Pune offers an array of advantages that an office space in Pune or a commercial property in Pune would find extremely conducive. In this blog, we will take a look at the recent trends in retail and office spaces that make Pune an irresistible investment option for smart investors. In addition, we will also explore the best commercial property in Pune. Read on!
Pune’s retail scenario has witnessed remarkable growth and transformation in recent years, which is a reflection of the changing preferences and lifestyles of its diverse population. Let’s take a look at a few trends in the retail sector.
Locations near transportation hubs and residential areas are the hotspots to buy shop in Pune:
Retail spaces strategically located near transportation hubs and residential areas have seen the maximum investment. One of the most prominent reasons for this trend could be the steady flow of footfalls such locations ensure for the retail shop owners.
The emergence of malls as experiential hubs: Gone are the days when malls were looked at as mere shopping destinations. With most of the malls incorporating entertainment zones, fine dining options, and interactive spaces, these have become more like avenues that create an immersive experience for shoppers. What is worth noticing in the recent mall culture is the integration of technology, such as smart parking solutions and virtual shopping assistants.
If you are looking to invest in a commercial property in Pune, a retail space in a mall could be one of the most alluring options.
Local and Global Brands are hanging out together: The transformation of the retail sector in India has opened doors for local brands, and now they are matching their shoulders with global brands by getting more visibility. From quaint boutiques to international labels, Pune now caters to diverse tastes. The arrival of global brands is not only transforming Pune's shopping streets but also exceeding the expectations of discerning consumers.
Tech-driven retail - a peek into the future: Pune’s retail spaces are now getting the Midas touch of technology, and it is working wonders for them. Contactless payments, augmented reality (AR) in dressing rooms, and personalized shopping experiences are becoming standard features. What is even more interesting is the fact that retailers are leveraging the power of digital analytics and marketing to understand consumer behavior and make customized offerings.
Here’s some interesting fact about the retail sector -
After the successful listing of India’s maiden retail REIT, a new office REIT by a consortium of prominent asset owners 600 with a total of 45 million sf is expected by the end of the year. NDR Warehousing, based in Delhi NCR, is evaluating its maiden INR 2,000 Cr InvIT by listing its 19 msf portfolio across India.
Source: Cushman & Wakefield Report
Now that we have looked at the detailed overview of the retail sector, let us see how office spaces are transforming, and the latest trends.
The demand for contemporary offices is ever-growing in Pune. The credit must obviously go to Pune’s reputation of being the IT and educational hub, which has inarguably transformed and redefined Pune’s commercial workspaces.
The surge in co-working spaces: Co-working spaces are growing in Pune, and how?
Especially startups and freelancers are opting for flexible office spaces. Prominent destinations in Pune are witnessing a surge in co-working facilities, as they offer a collaborative environment for professionals, and are comparatively less expensive as well.
Sustainable Workspaces: Pune's commercial real estate is embracing sustainability. Green buildings, energy-efficient designs, and eco-friendly features are becoming prevalent. Employees and businesses are increasingly prioritizing workspaces that align with environmental consciousness.
The growing demand for mixed-use developments: Mixed-use developments are on the rise, offering a seamless blend of work and leisure. Areas like Kharadi, Koregaon Park Annexe and Magarpatta are witnessing the integration of office spaces within expansive mixed-use complexes, creating vibrant live-work-play environments.
Office Sector - Investment Overview
The investment activity recorded in Q2 was INR 158.5 bn (USD 1.92 Bn) which was 63% higher than the previous quarter’s activity and 60% higher than the activity recorded in Q2-22. The office segment regained its ‘most preferred asset class’ status by capturing almost 65% of the total quarterly PE flows. Foreign investors accounted for nearly 84% of the investment flows driven by Singapore, Canada, and USA-based institutions. Q2-23 also saw the listing of India’s maiden retail REIT ‘Nexus Select Trust’ which raised close to USD 390 Mn (INR 32 bn) from its share sale in May 2023.
H1-2023 witnessed a cumulative inflow of close to INR 246.8 bn (USD 2.99 bn) which is 51% higher than H1-22, mainly driven by investment in the office segment and also increased investments in alternate segments like L&I and data centers. Equity investment constituted about INR 203.7 bn (USD 2.47 bn) during H1-23, accounting for 87% of the total inflows.
If you are looking for a commercial property in Pune, you must take a look at Kohinoor World Towers and Kohinoor Business Tower. These two commercial developments have transformed Pune’s commercial sector, and are looked up to as the benchmarks for offering a global experience.