June 13, 2024

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Birla entry sparks buzz in Pune real estate market

Pune’s real estate market has got a new player.

Birla Estates, the real estate arm of the Aditya Birla Group, has announced its entry into the market by acquiring 5.76 acres of land at Sangamwadi inside the city – joining the long list of corporate realtors who have marked their presence in Pune.

Abhay Kele, secretary of the Pune chapter of the National Real Estate Development Council (NAREDCO), says the latest move proves that Pune has both the buying power and the potential to attract and accommodate industry players of all “sizes, shapes and price bracket”.

According to Birla Estates, the land in Sangamwadi was purchased from Sudarshan Chemical Industries Ltd (SCIL). “This land parcel is located in one of the most premium locations in Pune with an estimated revenue potential of approximately Rs 2,500 crore,” the company said.

After taking a severe hit during the pandemic and the lockdown, Pune’s real estate industry has not only staged a speedy recovery but also surprised the industry by touching new heights.

In its report about housing sales during the (Jan-March) quarter of 2023, property consultancy Anarock pointed out that Pune has recorded sales of 19,920 housing units. This was a 42 per cent rise from the corresponding period of 2022. Mumbai Metropolitan Region (MMR) and Pune alone accounted for 48 per cent of the total sales of the top 7 cities in the first quarter of the current calendar year, it said. Interestingly, the majority of the sales are in the high end housing sector.

Pune’s market at present has a healthy mix of corporate, mid sized and local realtors The advent of MahaRera, Kele and other realtors said, was responsible for bringing order in what was a highly fragmented market. Players like Godrej, Tata Housing, Mahindra, Paranjape Schemes, Goyal Ganga Group, VTP represent a certain segment, while players like Prithvi Edifice, Rama Group and others cater to a certain segment.

Kele, the proprietor of Prithvi Edifice, said the entry of Birlas is proof that the market has buyers. “I see this move slightly differently- because Pune has buyers who can afford various groups who are eyeing and investing in the city,” he said.

Birla’s entry comes at a time when global headwinds have rattled many economies. Despite layoffs and a chill due to the recessionary hints in the economy, Pune’s real estate market is doing well, say Kele and others in the sector.

Unlike Mumbai where investors form a sizable part of the buyers, Pune’s market has always been driven by end consumers. “So some one like the Birlas would not enter say an area like Erandewane- there is room for development in many parts,” Kele said.

Anuj Puri, chairman, ANAROCK Group, said “This is a significant land deal which once again underscores Pune’s importance as a preferred residential real estate destination. Only recently, ANAROCK concluded another land transaction for 12.5 acres in Wagholi. The timing of this sale is impeccable. Driven by the ceaseless demand for high quality real estate in the city, leading developers have been on a land acquisition spree.”

K T Jithendran, MD and CEO, Birla Estates described the firm’s Pune foray as part of the company’s “exciting new phase after establishing itself in the MMR (Mumbai Metropolitan Region), Bengaluru and NCR (National Capital Region) markets”.

“Pune is one of the country’s largest residential markets and this land with high revenue potential is located at the heart of the city… The Pune foray is key to our growth strategy and our ambition to be among the top developers in the country,” he said.

Headquartered at Mumbai, with regional offices in NCR and Bengaluru, Birla Estates develops premium residential housing in key markets.