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A view of Kolte-Patil's Nano Space project that targets the city's IT sector

A series of planned and ongoing infrastructure improvements have provided a fillip to Pune’s growing reputation as a preferred destination for IT and ITeS players, writes Prachi Bari.

Pune first emerged on the country’s IT map back in 2002 when a handful of IT companies set up base there. Buoyed by the city’s strategic location, abundant talent pool, easy availability of land at competitive prices and basic infrastructure facilities it wasn’t long before this trickle turned into a flood transforming the city to its present status as a preferred IT & ITeS destination.

Subsequent investments into infrastructure development designed to boost the IT presence in the city have also paid off handsomely. A case in point is the Rajiv Gandhi Infotech Infotech Park at Hinjewadi, one of the first IT-specific parks in the city that today boasts of the presence of some of the top IT and ITeS companies in the country.

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According to some of the city’s leading developers, better infrastructure facilities, a large pool of educated and skilled professionals and an inherent cost advantage when compared to larger metros like Mumbai, are some of the reasons that have encouraged reputed software giants like Infosys, Satyam, Tata Technologies, TCS, Kanbay, Veritas, Cognizant, PCS, and Mahindra British Telecom to set up base at emerging IT hubs in the city like Hinjewadi, Nagar road, Kharadi, Baner road and Bavdhan among others. A trend, that has also created an estimated 70,000 employment opportunities for the city’s denizens.

“Lower costs and wider options are two of the key advantages that this city offers players looking for commercial space,” says Sunil Kolte, director, Kolte-Patil Developers that has a slew of completed and ongoing projects targeting the IT sector in the city.             

“Leasing commercial space at Pune comes at a fraction of the cost for a comparable property at Mumbai,” he adds. “Even when compared to other cities like Hyderabad and Bengaluru, the price for commercial space at most of the city’s well-equipped IT parks is very competitive.”

On the residential front, the increasing number of IT professionals shifting base to Pune is already having a positive impact on the city’s lease market for residential accommodation. As per the findings of a recent survey approximately 37,000 flats have been rented out to mostly IT professionals at Hinjewadi alone at a time when property prices in the city are down by anywhere between 20-40% as per the estimates of the Promoters and Builders’Association of Pune (PBAP).  

Key players like Satish Magar, CMD, Magarpatta Township Development and president, PBAP attribute this to a fear psychosis fuelled by the prevailing employment insecurities but are optimistic about the future. He says, “Though the IT community has adopted a wait and watch approach with regard to their property buying decisions we are bullish about the future since the city’s IT sector is still growing at a rate of 10-15% year-on-year.”

“Given the economic turmoil over the last few months, Pune today is viewed as the perfect venue by many companies to increase operational efficiencies and reduce infrastructural costs,” says KP Baney, MD, Devi Constructions. “Moreover the scope for price negotiation offered by emerging realty destinations like Pune, Hyderabad and Kolkata is a lot higher than matured markets like Mumbai and Delhi. This in turn has translated into a significant cost benefit for companies looking at cutting property costs without compromising on basic facilities.”