In the wake of Dubai's economic debt crisis, Pune's real estate sector is keeping its fingers crossed
In the wake of Dubai's economic debt crisis, Pune's real estate sector is keeping its fingers crossed
A mixed feeling of optimism and pessimism prevails in the Pune's real estate industry in the wake of the disturbing news of Dubai's economic debt crisis.
Described as the Oxford of the East, Pune is also an automobile city with the Tatas, Bajajs and global majors like General Motors and Volkswagen setting shop here. With so much happening, the city is viewed as a fruitful real estate investment avenue, after its much sought after neighbour Mumbai. However, the news of the Dubai crisis has unsettled realtors in the city.
Though builders in Pune have no direct investments in Dubai, they do fear that several Indians currently working in Dubai may face lay-offs and be forced to return home empty-handed.
No worries yet?
This could have an adverse impact on the city's real estate sector, as the NRI populace has heavy investments in Pune. Realtors fear that such a move could result in cancellations of bookings affecting this sector that is already reeling under the slowdown.
Ravi Verma, president of National Association of Realtors (NAR), an apex organisation of real estate brokers in the country, said, "It's too early to say how the Dubai crisis will affect Pune. We will have to wait and see if there are any cancellations from people laid off in Dubai, and returning home."
He said that though this possibility seems remote, it cannot be ruled out.
City connection
However, there are some that view this crisis with a positive outlook. According to D S Kulkarni, chairman of the DSK Group, said, "We do not have any investments in Dubai so we are not in anyway going to be affected."
"Unlike Kerala where a large section of the population is employed in Dubai, the number of people going out from Maharashtra is considerably less. But in case they lose their jobs in Dubai, they have all the more reason not to cancel their bookings as this city can give them better returns than Dubai which has neither oil nor petrodollars", he added.u00a0
Lalit Kumar Jain, former president of the Promoters and Builders Association of Pune, said, "The Dubai crisis affecting Pune is akin to Birbal's pot of khichdi where the fire is too far away from the pot to have any effect on the rice."
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