The state of commercial real estate in Pune

In human history, there has never been anything like the Novel Corona Virus epidemic. A catastrophe of this size that threatens the entire globe has never been witnessed before. In addition to posing a threat and claiming millions of lives, this new virus has also negatively impacted significant portions of the world economy. Very few companies have been able to escape the onslaught of this new virus unharmed. Naturally, like in every other region of the country, the real estate ' sector has been severely impacted in Pune.

The pre-pandemic times

Things had been looking up for commercial real estate in Pune and the area of real estate expansion until the epidemic broke out. Numerous large-scale, important building and real estate development initiatives had begun in the city's various neighbourhoods. These commercial projects in Pune were developed not just in the city's central business district but also in the outskirts.

One of the primary factors that effectively drew the focus of some of the leading real estate firms in the state was the growth of the cityscape, not only on all sides but also in the industrial suburban zone. Additionally, Pune's economy has been quite advantageous for this sector. The city had seen tremendous rates of industrialisation from the early 1960s. The economic situation and per capita income of the city and its residents have experienced an additional increase in recent years with the development of commercial projects in Pune like IT hubs and SEZs.

All of these elements, along with others, have played a significant role in the expansion of commercial real estate in Pune. Nevertheless, this was the situation before COVID-19's introduction.

Post pandemic times

Before the pandemic's emergence, commercial projects in Pune had been looking rather good. In 2019, the leasing business in commercial real estate in Pune was quite positive. Unfortunately, the lockdown caused a significant decline in business from April to June of 2020. The great majority of businesses nationwide were impacted by the epidemic, including those in Pune. They were prompted by this to revaluate their capital expenditures, including office leasing and rent payments. Commercial real estate in Pune witnessed a decrease of 70% in leasing.

The global epidemic has significantly altered the way that business decision-makers think and perform. The working world of today will be very different from the workplaces of the past. After the pandemic's onset, the idea or concept of office has significantly changed from how it was previously perceived.

The scenario is very different from what was anticipated for the viral breakout in early 2020. Industries and the economy slowly started to open up after the middle of 2020, and the markets started to regain their former splendour. Although the market is still opening slowly and returning to its regular working pattern, the older business pace could not yet be fully renewed. Even though most corporate brands will seek remote and dispersed workers in the future, offices are also gradually opening and staff members are gradually returning to these locations which in turn has boosted the renewed interest in commercial projects in Pune.