Why Buy Commercial Property in Pune?

commercial property agents Pune

Commercial real estate is an asset which has huge returns but also has numerous complexities like higher ticket size, liquidity and maintenance issues among others. So should you go for it? Today, we talk about buying a commercial property in Pune.

Why You Must Consider Buying Commercial Property in Pune

Pune has been at the forefront of the real estate sector for the past few years. It has been among the top performing real estate markets in the country consistently. According to a report by Colliers, “the city recorded about 1.8 million sq ft (0.17 million sq m) of gross office absorption in Q1 2018. This is an increase of about 131% in gross absorption YOY. “
The report further states that it is optimistic about the demand for commercial real estate in Pune, while the vacancy is “likely to remain low at 5-6% over next three years due to consistent demand and the level of pre-committed future supply.” While talking about the rent, the report states, “After a double digit increase in rents over last two years, rents are likely to stabilise over 2018; however we expect 8-10% increase in rents over 2018-2020.” And the prices are also likely to increase by 5-7 percent in the coming years, making Pune one of the most sought after destinations to buy commercial property.

Reasons behind Pune’s Commercial Real Estate Demand

While Pune has multiple active sectors like manufacturing, automobile, and banking, Colliers states that, “office demand continued to be driven by technology occupiers with the sector accounting for about 87% of the total leasing volume in the city.”
A report by Knight Frank claims, “The IT/ITeS sector has been the largest consumer of office space in the city” and “the Banking, Financial services and Insurance (BFSI) sector has consistently taken up an increasing amount of space”.
With respect to the rent, Knight Frank says, “The sustained decline in vacancy levels coupled with a steady interest by occupiers looking to consolidate or expand their real estate footprint within the city, has kept rental growth strong at 8% YoY in H1 2018.”
At Brick Folio we help you buy the right commercial property in Pune. We understand the market and firmly believe that in the right location the yield on commercial property in Pune is significantly higher when compared to other investment avenues.
We help you increase your cash flow by helping you buy the best commercial property in Pune. We believe that commercial real estate in a scare resource in Pune, and its value will always appreciate with time. As Pune continues to grow the demand for commercial real estate properties is bound to rise. It would be wise to invest now, to ensure maximum leverage in the future.
For more information on real estate trends and buying commercial real estate in Pune, contact us!

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