Then, in 1990, Pune began to emerge as a destination for Information Technology companies. At first, this was limited to BPOs who sought to capitalize on Pune's considerable English-speaking manpower and its low property rates. Nevertheless, the economic impact was visible almost immediately. Young people who, in the previously existing scenario, would not have reached any kind of impressive earning capacity before their mid-thirties began earning hitherto unheard-of salaries at the ages of 20-24.
This, coupled with the traditional desire for home ownership and ready availability of home loans, had a 360-degree effect on the requirement for homes in Pune. It also had an impact in terms of locations. IT/ITES companies prefer to set up shop in the less expensive outskirts of a city, and people who work in these industries prefer to live close to their workplaces. With the emergence of Hinjewadi, areas around it suddenly sprang into sharp focus and demand for more central areas began slowing down.
The effect of the It revolution on Pune's real estate market has indeed been tremendous. Today, Pune's developers are catering to an entirely different set of demographics than they did 15-20 years ago. The onus is now large flats with ultra-modern amenities, and on locations which offer fast access to the city's IT hubs. Simultaneously, the MIDC in Pimpri-Chinchwad is boosting demand for homes in its vicinity, driven by well-paid employees from those industries.
Today, the annual demand for homes in Pune is close to 46000 units, where it was less than 20000 units per annum just 15-20 years ago. While Mumbai is staggering under the weight of unsold units all across the city, supply and absorption of homes in Pune continues to make both property development and property investment eminently viable. Even in such a vibrant market environment, Pune's property rates remain relatively rational....home ownership in this city is a dream which can be translated into reality.
(Kishore Pate is the CMD of Amit Enterprises Housing Ltd.)
