New Delhi: We already know that Pune is no longer just a Pensioner's Paradise (though it still is the #1 city of choice for retiring people in Maharashtra). At least three other factors now define Pune - the growth of the Information Technology, the massive spread of organized retail and the city's changing demographics.
The last factor has had a significant impact on the demand for real estate in Pune, both in terms of sizes and types of homes. Until the late 1980s, residential real estate demand in Pune was driven largely by people who were working in a rather laid-back services industry. The modus operandi for home purchase in those years predominantly revolved around saving up a sizeable financial corpus and purchasing whatever home was affordable in that budget, preferably with little or no leverage.
Pay scales were moderate to low, and a comparison with the far more favourable pay scales prevalent in Mumbai was inevitable. As a result, there was a more or less constant flight of talent and capital from Pune to Mumbai. At the same time, lack of international employment opportunities prevented Pune's qualified youth from exploring their fortunes abroad.
As a result, the city's residential real estate market catered to a very basic level of requirements. There was little incentive for developers to be adventurous in unit sizes, specifications and locations. Property rates - and therefore property investment potential - remained low as the city awaited new market triggers.
