Like any other growing city Pune too has witnessed a paradigm shift in commercial & retail spaces. As the Indian IT sector boomed there was huge impact for cities like Pune & Bangalore. Driven by requirements to seat larger teams in swankier buildings with greater amenities and more upscale settings, the Commercial Real Estate market boomed. IT & ITeS also brought a big influx of people with residual incomes, need for shopping - both as a necessity and retail therapy - a need for entertainment, and a growing need to throw down roots by acquiring permanent base in the city. This drove both Mall spaces, Multiplexes, and a plethora of upscale residential developments across the city.
In recent times, demand patterns are shifting. IT & ITeS sector, that was the largest commercial real estate consumer in Pune in the recent years, is seeing a significant global downturn. This sector therefore will no longer be looking as much at large, swank, expensive floor plates and deals will drop in that segment. This means, we can expect the Co-working segment to target & convert some of the ready and non-saleable real estate into shared work spaces. Lower prices with built in facilities will attract a larger number of Freelancers, Independent Professionals and smaller teams to such spaces. Also expect to see more and more project teams and downsized teams move into shared workspaces and co-working spaces as they attack fixed costs.
I would also expect more boutique buildings, mixed commercial - retail development and a boom in more rationally priced housing. Pune does not make for easy commutes and real estate prices are not as friendly as they were a decade ago. I would also expect a significant mushrooming of co-living and alternate residential solutions in the next couple of years.