Tag Archives: Pune real estate

Pune realty blessed with local talent

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Track2Realty Exclusive

Bottom Line: At a time when the real estate developers across the country are cribbing against the labour shortage and absence of migrant work force to justify the cost over heads and delays in meeting the project timelines, Pune real estate is apparently showing the way forward.

Pune, Pune property market, Pune real estate market, pune property prices, India real estate news, India property news, Track2Realty, NRI investmentPune property market is meeting the two challenges with the use of local talent. Interestingly, there is no dearth of man power in this market, either skilled or unskilled and the reason is pretty simple; instead of looking to tap the work force from other regions developers in the city are banking on the local talent to meet the project requirements.

Moreover, this market is actually blessed with the availability of local talent; and the developers are giving preference to make use of it. Most of the developers in this part of the world are engaging the local work force (both skilled and unskilled) to make sure that labour shortage or absence of talent pool does not affect their timelines of delivery of the project. After all, talent shortage is a major issue confronting the real estate sector across the country and the Pune market definitely stands better positioned due to the focus on the local workmanship.

Analysts also point out that the realty business is quite different from other manufacturing businesses and this is one of the main reasons why it is a difficult business in terms of attracting, managing and retaining the work force. It has always been suggested that the sector needs real estate specific courses and the real estate community and government bodies need to work together in order to ensure that this demand supply gap is met. However, in Pune the developers are showing the way forward to other markets afflicted with the talent shortage.

This also raises a fundamental question as to whether this is a wilful strategy to use the local work force or is borne out of need to comply with certain mandate of the government authorities. In certain other markets, for example Noida, the government authorities have issued advisory to the developers to make use of more local talent. However, in Pune the developers insist it is a strategy that has evolved more by design than default.

Abhay Kumar, CMD of Grih Pravesh Buildteck maintains that realty business is such where requirement of local talent is always preferable and since it is available in Pune it always works in favour of the developers. He adds that the local manpower is also helpful for the developers as far as their understanding the market is concerned. Therefore, it is always a wilful exercise on the part of developers to hire local talent.

“Pune can be compared with any other metro as far as availability of talent is concerned. Both skilled and non-skilled professionals are found in abundance in the city and one of the main reasons is that Pune has got wonderful mix of urban and semi-urban population. On one side, Pune being closer to Mumbai adds to the supply of skilled talent, and on the other side the rural area supplies adequate non-skilled labourers,” says Abhay.

Kishor Pate, CMD, Amit Enterprises Housing agrees that for Pune-based developers, local talent is used in every project. According to him, in a regular housing project in Pune more than 80 per cent of the manpower used is local. There can be a higher percentage of outside talent in a luxury project; especially when it involves national or international level architecture firms, interior designers or other specialist consultants as these tend to have their own teams. Also, externally appointed firms who tackle facilities management post completion may have teams with a mix of local and outside manpower.

“For a Pune-based developer, using local talent is a matter of choice and makes sense in almost all respects. Project construction is a time-bound process and all teams involved need to be readily available on a constant basis. Even for developers who come into Pune market from outside, this is the reason why they use local manpower which is an essential factor in timely completion. One of Pune’s many USPs is its extremely rich and diverse manpower pool. In fact, Pune is not only a reliable talent market for the city but for the national and international markets as well. Skilled and unskilled talent is readily available, and local developers are usually able to build and scale their teams very efficiently,” says Pate.

Arvin Jain, Managing Director, Pride Group adds that to a maximum extent Pune developers use locally sourced talent as there is no dearth of qualified professionals. Construction labour teams are also maintained locally, but this aspect also depends to quite a degree on inward migration from nearby villages. Sometimes, it is necessary to bring in people from other cities and there can be various reasons for this, ranging from occasional and unanticipated dearth of construction labour to the precise requirements of more specialized projects.

“Developers in Pune will always seek to build their manpower from locally acquired talent, as this is not only good from a point of view of the generated employment benefiting the city but also in terms of managing attrition. While there is no compulsion as such, it goes without saying that it also helps with maintaining market goodwill. Pune has no shortage of skilled talent but ironically, developers sometimes have to attract highly qualified professionals who passed out from one of Pune’s many excellent colleges back into the city,” says Jain.

In a nutshell, Pune real estate market is blessed with local talent pool which helps them both ways—meeting project timelines as well as keeping manpower cost in check. Of course, in exceptional cases only there are sometimes shortages in construction labour, which makes it necessary to bring in manpower from other cities. The developers in the city are also candid to admit that since the pay scales are relatively lower in Pune than in Mumbai, the city loses quite a bit of qualified talent for that reason each year. But unskilled talent is usually not a problem.

 

Godrej Properties adds a new project in Pune

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News Point: The Mumbai-based Godrej Properties will develop a residential project in Hinjawadi IT Park, Pune. 

Godrej Press Launch, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyGodrej Properties has signed a new deal to develop a residential group housing project in the heart of Hinjawadi IT Park, Phase I, Pune.

Spread over 15 acres, the project will offer approximately 155,000 square metres (1.7 mn. sq. ft.) of saleable area and will be developed as a modern residential development comprising of apartments of various configurations.

Pirojsha Godrej, Managing Director & CEO, Godrej Properties said, “We are happy to add our 12th project in Pune in an important established micro market.  This project addition fits well with our strategy of strengthening our presence in the country’s leading real estate markets.”

This project is located behind Wipro in Phase I, the most prime location within Hinjawadi IT Park, and has excellent connectivity to the Mumbai-Pune Expressway.

This project will be developed in partnership with Godrej Residential Investment Program II (GRIP II). This is the third project under GRIP II, the US$ 275 million fund which was announced in March 2016.

Affordable homebuyers must know their wants & needs

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Bottom Line: Affordable homebuyers must understand their wants and needs to not get duped by the fancy marketing jargon of builders.

- india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Mumbai Real Estate, Bangalore Real Estate, Pune Real Estate news,Track2Media, Track2Realty, ravi sinha“Let’s face it! We all have unrealistic expectations when buying a house. We often forget about our budget and end up stretching it to fall into debt trap. It happens because we want the best of everything even though we are in the property market to buy a budget home or affordable home. I am not sure to what extent it is human tendency or to what extent we fall into the fancy trap of developers. But today when I look back I think I should have been more realistic when buying my house. There is no point paying almost all the salary in the EMI now,” says a repentant homebuyer in Mumbai.

Well, not many would like to admit it as openly as this homebuyer but the fact remains that the buyers of affordable homes often forget their wants and needs when they enter the property market. The temptation to have one’s home is palpable and many of the first time homebuyers make the mistake of stretching beyond the financial limits.

How many affordable homebuyers who leave to work early morning and come back late night actually need amenities like free Wi-Fi, amphitheatre, club, tennis court, swimming pool etc? Are many buyers in the average salaried class in a position to avail these facilities even though the developer has created e everything within the project? How long such fancy amenities are maintained once the project is over and the monthly maintenance charges are a huge issue?

The critics of this theory might question as to why not the buyers of affordable property be given these amenities. The reasons are many – ranging from the increase in loading percentage vis-à-vis the usable carpet area to cost of maintenance of these amenities every month. In a housing market like Mumbai where the majority of the homebuyers in the affordable segment are expat professionals having both time and budget constraints it simply defies logic to expect fancy amenities.

With the reasonable expectation of a roof over the head not very long ago, the real estate boom in this part of the world has scaled up the liberty of choice for the average homebuyers. While the aspirations of even the middle and lower middle income with moderate budget have gone up, there are very many residential projects launched in recent times that seem to fill the gap with the promise of hi-tech amenities, luxurious lifestyle, lush green surroundings.

Analysts therefore recommend that the average homebuyers must know their budget and needs to avoid the additional financial load. What you may want does not necessarily fit into your budget segment and the quest to have something more is endless. The smart builders do understand this temptation of gullible homebuyers and in the absence of homebuyers’ education in this part of the world their temptation is what sells the fancy marketing offerings of the developers.

Developers, on their part are conscious of this homebuyers’ temptation. The point out that the developers are just catering to what the market is looking for. Harjith.D.Bubber, M.D & C.E.O, Rivali Park agrees that nowadays a homebuyer expects gated community as a part of affordable housing. “External amenities like club house, swimming pool, open areas for children to play, minimum one car parking is the basic expectation of the homebuyer today even in budget housing.”

Parth Mehta, Managing Director, Paradigm Realty, on the other hand, suggests caution when he says that when a person is buying an affordable housing with budget constraints one should keep in mind some basic things. His suggested checklist is more about basic sanctions and clearances than amenities to ensure the timely delivery of the project.

“To invest in a property where developer has complete approval like IOD, CC is more important for someone who is spending his lifetime savings. The title of the property should be clear and marketable. One must also check the credentials and standing of the developer in the market,” says Mehta.

Some of the developers try to find a method in the expectations of affordable homebuyers. They feel it is more to do with how the developers define the demand of affordable housing. Affordable homebuyers too should be given liberty of choice as far as upgrading the lifestyle is concerned.

Nikhil Hawelia, Managing Director of Hawelia Group says there is nothing wrong for a low-ticket buyer to expect the quality experience. According to him, instead of compromising on the quality of amenities that the modern homebuyers want (and often also need) the budget segment should be determined by the distance from the main city and the work place. If one is ready to travel an hour or so for getting a luxurious feel at home, the market should be ready to respond to this set of buyers as well.

“I believe in today’s market place where most of the young buyers are aspirational, even when they have budget constraints, their budget should be a criterion only for location and the size of the apartment. They should not be devoid of modern amenities and that is how a new emerging segment of affordable luxury can meet the market expectations as well during the slowdown. This is how urbanization has evolved the across the world,” says Hawelia.

Analysts for quite sometime are pointing out to mismatch between homebuyers’ preference and the ground realities. While value addition is something that drives homebuyers across the segment of housing, in affordable housing this value addition has an altogether different connotation. More usable spaces, since most of the affordable housing units are smaller in size, is a better value addition than lowering the usable carpet area for the sake of badminton court or amphitheatre kind of fancy offerings. 

As a thumb rule, if the budget is just for the affordable home and the homebuyer is moving from a rented flat to his own, one should first of all look at the location and distance from the work place. Since most of such projects are on the periphery of the city, one must also look for the infrastructure within the project. Usable carpet area is next and the fancy offerings & amenities are definitely the last in the checklist of affordable housing. 

By: Ravi Sinha

What regulatory bill will do for homebuyers?

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News Point: Now that the Real Estate Regulatory Bill has been cleared for take-off and will be an enforceable law soon, the question that buyers are asking is how exactly they will benefit from it.

Kishor Pate, CMD, Amit Enterprises Housing, Pune real estate, India real estate news, Indian realty news, India property market, India investment, Track2Media Research, Track2RealtyThis is a fair question, considering that RERA was primarily formulated for their protection and in their interests. Let me answer it as clearly as possible, without sacrificing on the necessary details.

One of the most important things that RERA will do for homebuyers is to reduce their uncertainties when it comes to planning their finances around a home purchase.

If we assume that a buyer has booked a flat admeasuring 1,000 square feet, and that the developers has promised possession in three years. A flat of such dimensions (1000 square feet) in a location which is close to the city Centrex, or has good public transport connections to it, would potentially earn its owner anything between Rs. 1.5-2.5 lakh per annum.

If the developer keeps his promise and delivers the flat in the stipulated time, the buyer would be able to put the flat out on rent and draw an income from it to offset his home loan expense.

However, if the developer fails to deliver the property in three years and extends the delivery by a year or more without providing compensation for the delay, the buyer’s finances are thrown seriously out of whack. The Real Estate Regulatory Bill will safeguard property buyers from such eventualities.

In the latest amendment to RERA which was accepted in the final draft, real estate agents are also covered under its. Effectively, this means that property agents can no longer engage in deceptive promises, charge excessive brokerage or fail to perform their full duties in a property purchase. They will be held accountable for any deficient service or failure of omission or commission.

RERA will also ensure that home buyers will not be cheated on the promised layout, and that amenities and fittings will not change along the way. Notably, such unforeseen and unscheduled changes were a recurring nightmare and grievance for homebuyers in the past.

With RERA in force, the developer will not be able to make any changes in the layout, dimensions, amenities, facilities and fitting which were agreed upon at the time of signing the sale deed. If they still occur, affected buyers can appeal to a tribunal which has been specifically instated to address such incidences, and be assured that punitive or corrective action will be taken against the developer.

Also, RERA will require developers to quote their asking rates on carpet area instead of super built-up area, which has so far been the norm. This aspect will take some time to be fully implemented, as it is a huge change which will require countless developers to recalibrate their rates.

There are many more facets to this Bill which will work in favour of property buyers, but the above clearly indicate that property buyers are soon going to stop being victims and will in fact be much more in full control of their property investments.

By: Kishor Pate, CMD, Amit Enterprises Housing 

How rental housing benefits our cities

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Bottom Line: If modern rental policy becomes a reality, we will see a significant increase in investor demand for housing in areas where there is a huge requirement for rental housing.

Kishor Pate, CMD, Amit Enterprises Housing, Pune real estate, India real estate news, Indian realty news, India property market, India investment, Track2Media Research, Track2RealtyRecently, the Indian Government announced its intention to deploy a modern tenancy law with the aim to promote rental housing in Indian cities, giving due heed to the requirements of contemporary tenants. The planned National Urban Rental Housing Policy intends to address the needs of people migrating from rural areas to cities.

It will benefit intending landlords who have so far shied away from renting out their properties, by means of fiscal incentives specifically designed to encourage rental housing. The result will be a far better availability of rental housing in cities where it is needed the most.

The rental housing conundrum

India’s cities are continuously growing in terms of population, and increasing population has consequently led to more pressure on their housing markets. The rental property market is the only option for most people who have newly migrated into a city for employment, or are just at the outset of their careers.

Given the huge inward migration that Pune sees each year, the city’s rental housing market is literally a lifeline for countless individuals and families. As a result, rental housing is also a prime focus for real estate investors.

This is a trend we see in cities the world over, where the rental market thrives even when end-user housing sales are constrained due to macroeconomic factors. If we look at the US market, even while home ownership was a common trend during the 1900’s, the share of the rental market was seen as increasing.

Between 2004 and 2012, the rental market grew from 31% of 35%. In 2013, the total number of renters in the US was more than 43 million.

This trend also reflects in countries like India, where rental housing is always in demand – regardless of how the home sales market is performing. There are several factors driving this phenomenon, but one of the most pertinent facts is that rental housing has positive impacts to the overall economy and development of a city, as well as the country as a whole.

Developing cities have always attracted greater migration of talents from neighboring cities. This naturally puts pressure on the existing residential stock. Rental housing is the only bulwark against the growing cost of home ownership; it offers a greater flexibility and puts significantly lower financial strain on people.

Further, rental opportunities attract a vast cross-section of households and individuals from diverse age groups, ranging from students to high-ranking executives. Almost every Indian family with the budget to buy their own home has inhabited rental properties at some point. 

A range of housing options

Rental properties come in a variety of configurations – the higher one’s budget is, the better the space will be in terms of location or size, and also the available amenities. They range from single family homes to high-end multi-bedroom apartments.

Rental homes meant for modest income groups are generally concentrated around the cheaper suburbs, while higher rentals occur in the classier areas of the city.

Thus, rental housing caters to the whole spectrum of incomes. As cities experience higher inflow of migrated population, the suburbs and surrounding spaces must develop their rental housing capacities to meet the demand. 

Rental housing decreases slums and other irregular developments

In the absence of adequate rental housing in a city, migrating populations – especially the lower income groups – are apt to occupy slums or other kinds of irregular housing which tend to blight the urban landscape of growing cities.

This adversely showcases the quality of growth of the city, and also creates a range of problems that range from increased crime rates to sanitation challenges. Affordable rental housing is therefore an important preventive of unorganized growth.

With more families able to depend on rental properties, the city’s housing market as a whole gets more standardized. Increased competition among property developers and agents ensures that real estate prices are managed within the ‘affordable’ range. This also goes on to boost the overall economy of the city. 

Rental housing encourages influx of valuable talent

One of the primary concerns among the migrating workforce is the availability of adequate housing. A city that offers limited or unaffordable rental housing options will also not be able to maintain its skilled manpower equity. The influx of qualified and skilled working population is necessary to encourage growing services sectors like healthcare, manufacturing, education, entertainment and retail.

In short, affordable rental housing must always be encouraged in a city which seeks to grow and prosper. A city’s town planning authorities and state governments alike must take heed of the fact that growth in the rental housing sector is a very essential quality and component of overall urban growth and development.

By: Kishor Pate, CMD, Amit Enterprises Housing 

The empowered Indian woman and home purchase

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A decade ago, an Indian woman independent and capable enough to buy her own home was a rare case but things have changed today.

Kishor Pate, CMD, Amit Enterprises Housing, Pune real estate, India real estate news, Indian realty news, India property market, India investment, Track2Media Research, Track2RealtyThe contemporary Indian woman tends to be very well educated, has a good job with excellent career growth prospects, and even holds important government or corporate leadership posts.

In any case, today’s Indian women certainly have the ability and confidence to craft their own lives, and are very much able to fulfill their dream of owning a home regardless of whether they are married or not.

In fact, buying a home is fast beginning to figure as a bigger priority for many Indian women than marriage. This is not surprising, since a self-owned home is correctly seen as the #1 security anchor in India – and the best foundation from which to make long-term life decisions.

In fact, even married Indian women today are more often than not active financial partners in their families. Apart from being earning members, they also have a complete grasp of the family’s current and future financial abilities.

Developers are very aware that the woman plays a leading role in a family’s home purchase decisions. Also, Homes are made by women, not men. Every man knows this, and will defer to the judgment of the woman in his life in matters of buying a home.

Women have a genetically encoded gift for homemaking, and much better perspective about what should be included or excluded. A man depends on the woman to make his home comfortable and suitable for family life.

Still, buying a home is not just a matter of instincts and good taste, but also one for adequate planning and foresight. For women who investigating the market for suitable properties, either for themselves or for their family, here are some points to consider:

Prepare for the initial costs:  First-time homebuyers tend to save a considerable while to get a sizable down payment together. However, keep in mind that property purchase involves several other initial expenses such as stamp duty and registration costs, utilities connection charges and insurance and taxes.

Apart from your down payment on a home (or your contribution towards a home loan) you need to have an additional fund of at least 6-7% of the base cost of the property available. If a broker’s services are used, even a negotatiated fee will amount to a significant sum.

Not having the required capital to cover all of the initial costs can prove to be a dampener on home purchase plans. It is not necessary to have the entire corpus in one’s savings account, since personal loans are always an option.

However, women who are just starting out in their careers should not allow themselves to fall too deep into a credit trap. If they avail of a personal loan to cover the initial costs of home purchase, it should be to the minimum possible extent so that repayment does not become an issue on top of servicing the home loan. It is always best to use free and clear capital as far as possible. 

Be confident about monthly outgoings:  Anyone eyeing a property purchase should first figure out the monthly mortgage and whether they will be able to afford it. Online mortgage calculators can be helpful, but they will only tell you the value of the principal and associated interests.

There are other monthly expenses involved in home ownership, and these include insurances, taxes, maintenance charges, utilities charges, etc.

For working single women, it is important that all these amounts put together do not exceed 35-40% of their net income. Do not neglect to figure out your overall cost of living before deciding on how big a home loan you can safely service, and keep in mind that property is not the only investment you should make towards your ongoing financial security. You should also put at least 10% of your monthly income into a retirement plan.

Often, the full implications of having over-committed on a home loan do not dawn on the borrower until the home loan has been serviced for a few months. By then, it is too late to modify the financial plan. When it comes to home purchase, every financial angle must be examined well in advance.

It is very advisable to use the services of an experienced financial planner, or rely on the informed advice of a family member, friend or colleague who is experienced in such matters. The process of buying a dream home should not turn into an unexpected nightmare at any point.

Be realistic and maintain forward focus:  Home ownership is a great step ahead in a woman’s life, and towards independence in your retirement age. But your first home is not necessarily the only home you will ever buy. Remember that you can always upgrade in the future if required or desired, so there is absolutely no need to buy the biggest-possible flat now. Never compromise your current financial viability by buying a needlessly expensive home.

The home you live in today does by no means have to be the one you will be living in when you retire. When it comes to real estate, it is always a good thing to upgrade as financial ability improves, but this process can and should be planned out over the entire course of one’s working life. For a woman who is at the outset of her career, nothing is more important than financial stability on every front.

To plan for upgrading to a bigger and better home further down the line, it is very advisable to invest (and stay invested) in good mutual funds which deliver more returns than savings accounts.

Direct stock market speculation into single company stocks and bonds as a potential source of real estate funding should be avoided, as such investments are not sufficiently diversified to offer a safety net in case a company experiences a downturn. 

Shop around extensively for home loans:  When it comes to choosing the right lender, do not go by the recommendations of friends or relatives alone. Do extensive research on the several different lending institutions available to you.

Ideally, you should get pre-approved for a home loan the interest rate should be the most competitive. Remember that as an Indian woman, you are entitled to ask for a lower rate of interest on a home loan – be sure to insist on this benefit.

The home loan market in India is currently very competitive, and banks are falling over themselves to attract customers. This is a fact that can and must be taken advantage of.

A woman who is shopping around for a home loan should make specific inquiries about special interest rates and other incentives that a bank is offering to women borrowers. Asking the right kinds of questions will also establish you as an informed borrower and encourage the bank to offer you the best possible structuring.

Never take the first thing that is offered to you – most banks have a considerable margin of flexibility to accommodate borrowers who know what they want and are determined to get it. If you are married, the ideal scenario is to take a joint loan with your spouse. This is also the arrangement that banks prefer most, since it reduces their risk.

Be sure of the developer’s credibility:  Every day brings new stories about buyers who have been hoodwinked by unreliable developers. Either the project has been unreasonably delayed, has never even taken off or the delivered property (or amenities and facilities) are grossly different from what was initially promised.

Do not fall into such a trap – no woman looking for the security of home ownership should have to deal with such a setback. Make sure the developer has a strong reputation on the market by doing multiple checks with reliable agents, the home loan company and also on the Internet.

It is highly advisable to patronize only established developers with a readily verifiable track record for timely completions and 100% adherence to the agreements they make with their customers.

By: Kishor Pate, CMD, Amit Enterprises Housing 

What has led to Pune’s affordable housing crunch?

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No discussion about the hottest real estate markets in India today is complete without a generous reference to Pune.

Kishor Pate, CMD, Amit Enterprises Housing, Pune real estate, India real estate news, Indian realty news, India property market, India investment, Track2Media Research, Track2RealtyPune is one of the most-talked-about and desirable places in India to live and work in today. People are attracted to this city because of its vibrant job market, the much more clement climate and environment when compared to the neighboring financial capital Mumbai, and – very importantly – the superior quality and spread of options in housing.

However, there are some important factors that property buyers who are not familiar with Pune should be aware of so that they can make the right choice while buying their homes here. Pune is doubtlessly a marvelous place to live in, but this has over the recent years actually become a problem.

The areas closest to Pune’s business district and Information Technology hubs have gained attention for being the most desirable places to buy or rent a home in. However, as the popularity of these areas increased, so did the cost of living. Because these areas are seen as high profile and naturally attract people from the higher income brackets, most of the housing supply there is now in the premium segment. The property rates of such housing also drive those of non-premium housing upward.

It is not only real estate prices which are affected in these locations, but the overall cost of living. The high property prices in these areas mean that shopping outlets, entertainment centers, restaurants and healthcare facilities all have to pay much higher rents.

The higher costs are directly passed on to the customers in these catchments. Moreover, because of the overall premium ethos of these locations, they tend to attract retail, hospitals and F&B outlets which cater primarily to high-income customers.

True, Pune is one of the most vibrant cities because of its high lifestyle quotient, spunky neighborhoods and Information Technology hubs. Unfortunately, the very residents who made the city this upscale, happening place where everyone wants to live and work are now challenged by the increased property prices and cost of living. In Pune, affordable housing options are becoming fewer and far between.

As a result of the rapidly increasing capital values, housing rents in the most popular areas have also been rising inexorably, and this trend shows no signs of stopping anytime soon. Right-priced housing is decreasing because of the swanky new apartment buildings in the more happening locations. Pune’s inner locations and those closest to its IT hubs now have no affordable housing left for people to buy, even as the influx of new renters in these limited areas drives up demand and prices for a limited amount of units available for rent.

The only solutions would appear to lie in Pune’s far-flung outskirts, where land is still cheap and developers can keep their prices low. However, these areas are also very far from most of the city’s workplace hubs, and also lack the kind of support infrastructure that makes decent living possible. Fortunately, Pune still has a small handful of locations which are neither too remote not too costly for budget home buyers.

Among these, Undri in the Southeast of the city and Ambegaon in the Southwest are two of the best-connected areas which are still receiving a decent supply of affordable housing and also rapid infrastructure deployment. Keshavnagar and Manjri in the East are also still quite affordable, though relatively less enabled in terms of infrastructure.

These locations offer home buyers the benefits of rational housing prices as well as very good connectivity in terms of road network, public transport and proximity to good schools, shopping, entertainment and affordable healthcare.

By: Kishor Pate, CMD, Amit Enterprises Housing 

Real estate demands from the Union Budget

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Real estate stakeholders in every Indian city are looking forward to the upcoming financial budget 2016 to see whether it will provide any relief to the sector.

Kishor Pate, CMD, Amit Enterprises Housing, Pune real estate, India real estate news, Indian realty news, India property market, India investment, Track2Media Research, Track2RealtyDevelopers have their own expectations, because positive announcements for real estate buyers made during the budget will help increase the market sentiment, and therefore sales. The general hope is that the budget will provide cheer to intending homebuyers who have been deterred for various reasons.

Make home loans more affordable

The Union Budget should make the rate of interest specific to home loans more reasonable. Currently, the banks are offering interest rates which are still too high. Paying so much interest has serious implications on the family budgets of most middle-class wage earners. It is not surprising that many of them currently shy away from home loans.

The budget should bring the interest rate on home loans down to between 7.5%-8.0%. The new government has clearly stated that it wants to make Housing For All Indians a reality by 2022. It is impossible to achieve this goal if home loans do not become affordable to all, as well.

Additionally, the home loan interest amount exemption under Income Tax benefit should be increased from the existing limit to Rs. 3 lakh. Further, this exemption should be made applicable for more than single property purchases.

This is not an unreasonable expectation. In the current times and in many cases, a single home is not enough to accommodate all family members. The finance ministry should take due note of this fact and accordingly provide relief for both first home and second home buyers.

Eliminate multiple taxation on property purchase

The budget should also do away with the multiple taxes involved in the purchase of residential property. As of now, home purchasers are required to pay service tax and value-added tax (VAT) on top of stamp duty and registration charges. Goods and Service Tax (GST) should be introduced in the place of these taxes. 

Bring in the real estate regulatory bill

The real estate industry expects the Budget to finally make the Real Estate Regulatory bill a reality this year, so that the industry has the benefit of an apex body via which all concerns can be addressed transparently and efficiently.

Reduce cost of property registration

Another expectation from the Union Budget is a reduction in the cost of property registration. Stamp duty and registration costs are as high as 6% in most cases, and this needs to be reduced by a few basis points to aid consumers. Alternatively, a slab-based approach should be introduced. Stamp duty falls under state government purview, but the Center can nevertheless issue a directive to reduce stamp duty costs.

By: Kishor Pate, CMD, Amit Enterprises Housing

Tips on buying a ‘starter’ home

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By: Kishor Pate, CMD – Amit Enterprises Housing

Kishor Pate, CMD, Amit Enterprises Housing, Pune real estate, India real estate news, Indian realty news, India property market, India investment, Track2Media Research, Track2RealtyBuying a home, though a momentous step for most people, is usually not a final thing in and by itself. Most homeowners will upgrade their homes at some point, which makes their first homes ‘starter homes’.

The seemingly diminutive term aside, it is a fact that we tend to buy our first homes with the maximum resources which are available to us at that point in time. Starter homes may yield to a bigger, better deal in the future, but right now it is all that one can afford. As such, starter homes are as significant to their owners as anything that will follow.

Buying a starter home is also significant in another sense – it is the point where most people step into ‘adulthood’, in the sense that they are finally transitioning from living on rent to a self-owned property. It marks the end of one’s association with landlords, and the beginning of autonomy.

The autonomy that a starter home affords is first and foremost financial in nature. Rather than spending a significant amount of money every month without the hope of seeing any returns on investment, one is now investing a certain sum of money every month into a self-owned, appreciating asset.

However, the autonomy extends beyond the financial aspect, as well. Regardless of how small and humble one’s starter home is, one finally enjoys the full gamut of freedoms vested in home ownership.

Most changes and modifications to the flat can be carried out with complete confidence, with no permission from the landlord required (of course, some structural changes will still require the approval of the housing society).

Unlike in the case of a tenant, a property owner has an active say in all matters that come up for discussion at housing society meetings. His or her vote is required and sought to pass new rules, regulations or initiatives undertaken within the project.

That said, starter homes are often just that. They are purchased to serve as transitional homes, and will in most cases not be the ‘final’ home one lives in. Until the time for upgrading comes, however, it will serve as a place to set down one’s roots, start a family and work on one’s career. Because it is bought at a time before the buyer reached his or her peak financial capacity, it needs to come at an affordable price and also involve affordable maintenance costs.

Luxurious amenities are not expected in such a home, but most buyers will still look for a decent size of living space and a balcony. Reliable water and electricity supply are of course indispensable, and should not be compromised upon regardless of one’s purchasing power.

Location is a critical consideration for starter homes as much as for the more expensive upgrades which are to follow. While a small family can live in adequate comfort in a 1 or 2 BHK flat, a remote location which does not allow for a relatively easy commute to and from work is not acceptable.

The area must be well-connected by public transport, as many people will only buy their first car for regular use at a later stage. The area must also offer an adequate selection of retail outlets to meet daily shopping needs, and access to a good school and hospital.

Location is in fact very critical when buying a starter home, because many first-home buyers find that their lifestyle quotient takes a backward step when they stop living on rent and buy their starter home.

After all, one of the advantages of living on rent is that one can live in central locations which offer a lot of conveniences. When it comes to actually buying a small home of one’s own, one may find that the only locations that are affordable are the under-developed or emerging ones.

To avoid such a trap, it is all the more necessary to launch a detailed and patient search when looking for one’s first home. The first options that crop up while doing an online search for properties within a certain budget often tend to be in emerging locations, but that does not mean that no better options are available.

This is the best of time to contact real estate brokers who have good databases to access. Some of the cheaper options in a project may not be advertised online, but other often exist.

Also, not all emerging locations are created equal. Some offer much better locational advantages than others, and reputed developers will often launch township-style projects in which most needs of residents are easily met. Obviously, properties in such locations and projects will appreciate must faster than others, meaning that one is buying into a much more advantageous base for a future upgrade to a larger home.

Festive season boosts demand for affordable homes in Pune

Posted on by Track2Realty

By: Kishor Pate, CMD, Amit Enterprises Housing Ltd.

Kishor Pate, CMD, Amit Enterprises Housing, Pune real estate, India real estate news, Indian realty news, India property market, India investment, Track2Media Research, Track2RealtyIn a price-sensitive market like Pune, affordable housing is always in demand. The city’s working and earning middle class is constantly on the lookout for good homes available within their budget. This festive season, the Pune market is showing signs of increased activity as always, but the onus is on homes which fit people’s budgets.

Buyers are looking for decent-sized homes within the city limits, with good amenities, and within a budget range of Rs. 29-50 lakh. This is the category of homes which will draw the highest demand this festive season. Developers offering homes in this budget range in an all-inclusive package will be able to tap into this demand.

Buyers should do their homework and look for good options in new constructions by reputed developers. Focusing only on established builders will allow them to book homes in under-construction projects with confidence, as timely completion, delivery of all promised features and adherence to quality construction norms are assured in such cases.

The festive season is an ideal time to take advantage of lucrative offers from such developers, such as all-inclusive price packages. However, buyers should not be swayed by offers of meaningless freebies and focus only on the actual value being given.  Buying an affordable home is all about getting what one needs within one’s budget, not about bringing home surplus white goods or paid vacations.

Information technology is still Pune’s biggest demand driver for residential real estate. The most exciting – and, from the investment perspective, profitable opportunities in the Pune real estate market are currently 1 and 2 BHK flats in well-connected locations.

The areas which are drawing the highest number of enquiries this festive season are Undri, Ambegaon, Wagholi and also Mundhwa and Manjri, because these locations have the advantage of good connectivity to Pune’s IT corridors, and projects there fall within the right budget bracket.

Tips for home buyers:

  • Do not focus merely on price. While buying an affordable home is definitely about staying within one’s budget, there are always superior projects with better amenities and in better locations available within any budget range.
  • Do not be tempted by the cheaper options being offered by unknown developers on the outskirts. Many buyers fall into problems today by investing in illegally constructed projects which are sold cheap but may cost the buyer dearly later on.
  • Patronize only reputed developers. Doing so allows you to book into under-construction projects without fear, and benefit from the more attractive prices available in under-construction projects.
  • While choosing your project, do not neglect to factor in potential for appreciation – your home is your most important investment. The location should have strong infrastructure fundamentals and demand dynamics. Spend some time and effort to study how prices have been growing in the area.
  • Remember that this is currently a buyer’s market, and that there is scope for bargaining. Rather than settle for inferior options by unknown builders, look for good options with reputed builders and discuss with them how the best price can be arrived at.
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