With nearly 20 new malls coming up in the next few months, the city's real estate market is heading for a steady upward spiral
With nearly 20 new malls coming up in the next few months, the city's real estate market is heading for a steady upward spiral
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After a steep downward curve in the wake of economic slowdown, the realty sector with several malls coming up is slowly but surely spiraling its way upwards. Though the builders are optimistic, there are others who feel that the surge is unsustainable.
Ravi Varma, president of National Association of Realtors, said, "Obviously, there's an oversupply of shopping centers in the city as 20 more malls are coming up (adding to around 12 malls that are already in the city).
Besides, every business enterprise has been suffering in the slowdown, due to the geographical location or high prices." He, however, added that there will be a sea change taking place.
Preet Solanki, a real estate consultant, was cynical when he said, "Pune does not need so many malls. There is a limit to which this city can grow, and it has reached its peak. The situation to me looks difficult."
A similar view was expressed by Kiran Sanghvi, partner Sim Properties. He said, "Malls do give a shopping experience to the family, but I feel Pune does not have the infrastructure to sustain the mall culture."
However, real estate developers are optimistic about the booming market. Speaking about the reviving market Satish Magar, President, CREDAI and Chairman & Managing Director of Magarpatta Township, said, "The market is good now and sales have picked up."
A sentiment echoed by Anand Dutta, head retail and leisure advisor, at Jones Lang Lasalle Meghraj. Dutta said, "The real estate scene is picking up and more retailers are signing up for mall space or properties at minimum guarantee or revenue-sharing model."
Jewel in the crown
With this changed state of affairs the latest mall to hit the city this weekend is the Jewel Square at Koregaon Park, next to the Taj.
Nishit Sabra, Marketing Head of the Jewel Developers is all set for the big launch.
Sabra said, "We had started work in 2006 and now it's time to take off. Our core strength is the location, which is upmarket, and we are catering to the premium segment."
With its unique D-shaped interior to ensure maximum visibility, escalators and its array of brands like Chemistry, Mango, Tommy Hillfiger etc this is just the starting point.
Another huge mall Market City is coming up in Hadapsar. Anirudh Deshpande, Managing Director of City Corporation Limited, said, "What we are providing is a 'Day-Out Destination.' The project is expected to be completed by October 2011.
Growing city
According to Prashant Waghmare, the city engineer at PMC, "For a city to grow, you need more malls. Thus, not only locals but also tourists and outsiders will be benefited."
As for the shoppers' take on the mall culture, Tresha Guha a post-graduate student who is pursuing media studies, said, "I am happy that I have more shopping options and places to hangout over the weekend."
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