With the changing rupee to dollar ratio and a dent in India's software exports, will IT continue to drive Pune's real estate or will the city look for alternate drivers of commercial real estate.
According to real estate consultants in the city, the strengthening of rupee has affected the small software companies a lot but the big IT giants will be able to weather the loss in exports. According to property consultant, SS Gill CMD of Gilson Realtors, Pune, "The big and established software companies will be able to sustain the loss but it has definitely impacted the small start ups and medium sized software companies in Pune. They may not be able to withstand the losses and some of them could even shut shop."
Pranay Vakil, Chairman - Knight Frank India Pvt. Ltd. had mooted this idea at a recent NATCON convention of Credai that the IT sector is driving the country's real estate in a big way with an annual demand of 30 million sq ft. Now what happens if rupee to dollar value is 35. then there will be a slowdown in the IT sector and hence demand for real estate. Developers need to think of alternate growth drivers.
So is Pune looking at alternate real estate drivers. The real estate industry feels that the market will always be buoyant, as Pune is an attractive place to all sundry investors due to its climate, cosmopolitan profile and the good blend of people from all communities. The automobile sector could well emerge as a significant other driver what with Volkswagen construction plant setting up base at Pune.
There are rumours of other automobile majors eyeing Pune as a manufacturing base. Education has always been a significant driver of realty as Pune has a good number of institutes of under graduation and post graduation and is driving the rental market in a big way. Besides, the industry insiders feel that IT and ITES' slowdown may be temporary and these two sectors are here to stay.
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