Survey reveals Kalyaninagar, Airport Road, Yerawada and Ahmednagar Road areas give 14% returns.
A recent survey by real estate consultant Knight Frank ranks Pune suburbs as third in terms of country’s investment destinations when it comes to office properties.
According to the nationwide survey, Pune’s suburban business district gets an annual return of 14 per cent, just behind Central Mumbai who topped the list with 19 per cent annual returns and Mumbai West (15%).
The suburb district as mentioned in the survey consists areas like Kalyaninagar, Airport Road, Yerawada, Ahmednagar Road and Vishrantwadi.
Besides, the survey also states that the prices of the office properties in these areas are expected to rise by 38 % in the next five years.
The survey
Knight Franks India’s office investment advisory report titled ‘Top Business district in India to invest in’ studies 33 business sectors divided as business districts of the country.
Reason of the upsurge
Samantak Das, director of research and advisory services of Knight Frank India, said, “Pune’s office real estate market is primarily driven by the IT and ITES sector. Any slowdown in this sector will have an adverse impact on the demand of office properties.”
How Pune fares?
The report states that Pune has a total area of 43.1 mn sq ft area of office space of which 34.2 mn sq ft is already occupied.
While the IT sector occupies nearly 75 per cent, 12 per cent is occupied by the manufacturing centre.
In numbers
Capital values of the office properties in areas like Kalyaninagar, Airport Road, Yerawada, Ahmednagar Road and Vishrantwadi varies from Rs4,800 to Rs6,000 per square feet and by 2017, it is expected to rise up to somewhere between Rs6,650 and Rs8,300 per square feet.
Area-wise
The survey shows that though areas like Kalyaninagar, Airport Road, Yerawada, Ahmednagar Road and Vishrantwadi are expected to get higher investment returns, areas like Bund Garden Road, Senapati Bapat Road, Camp, Deccan, Pune station area has the highest capital value in terms of office property rate in the city.
In these areas, present rate of properties varies from Rs7,200 to Rs8,400 per square feet and by 2017 these rates are expected to increase upto Rs8,600-Rs10,100 with annual investment returns of only 9 per cent.
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