Recession continues to grip sector
The ongoing recession continues to have its impact on real estate, including commercial properties in the city, as Pune Municipal Corporation (PMC) registered the lowest number of building construction permissions given since last year.
Going by the figures, the PMC gave 3,866 building permissions in 2014-15 which is lowest in the last eight years. “The maximum growth in real estate industry in PMC was registered in 2011-12 when 4,623 permissions were given for building constructions. This has shown a decline thereafter,” said civic official.
The only new trend that can be observed since last year is that the floor space index (FSI) has not shown a steep decline compared to the number of proposals. “The high FSI and less number of proposals mean that upcoming buildings, both residential and commercial, are highrises and mega structures,” the official added. Thus, large apartments are under construction and commercial establishments are getting bigger in size, he added.
Also, construction activities are more focussed in certain areas, such as Kothrud, Aundh and Hadapsar. New constructions which were at a peak in the suburbs have slowed down in the last few years.