Wait For The Real Estate Regulator Bill (RERA) Or Buy Now?

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

Across the country, aspiring property buyers are waiting for RERA – or the Real Estate Regulation Act – to be implemented by the States.

Time and again, it has been stated that the consumer must consider the reputation of the builder prior to taking a decision to buy a property/asset which is likely to remain for generations.

On implementation of RERA, only builders with sound reputations will remain in the fray – this probably its most important function in protecting consumer rights and interests.

Once RERA becomes a enforceable law, it will change the ways in which residential housing projects are planned, offered, sold and possessed across India. Property buyers will no longer need to worry about unfair contracts, delayed possessions, non-notified alterations in building plans and other risks.

The aim of RERA is to make real estate purchase simpler by bringing in better accountability and transparency. In doing so, it will also infuse a lot more confidence among buyers – who, at the end of the day, should feel as comfortable about investing in a home as they are about buying gold.

RERA lays forth several ground rules for real estate buying and selling, including:

  • Registration of every real estate project with the appointed tribunal (with some exceptions). Non-registered projects cannot be offered for sale or booked by promoters.
  • Mandatory uploading of project details by the developer on the RERA website, including layout planning and completion schedule.
  • 70% of the advance collected from buyers needs to be maintained in a separate bank account and be used only for the stipulated project construction. These funds cannot be hived off for other purposes – a practice that has contributed majorly to delayed projects in the past. The individual state governments have reserved the power to alter the amount, but the principle is very much in place.
  • Establishment of Real Estate Appellate Tribunals that will handle any issues related to property disputes, with the intention of delivering quick and unambiguous resolution.
  • Setting up of an advisory body to deal with matters related to government-sponsored real estate development.

In one of the most important addendums to RERA, real estate brokers and the way they conduct their business now also fall under its ambit. The days of unscrupulous property agents either acting solely in their own interest or in collusion with developers are now numbered.

In fact, RERA will protect both the buyer and the seller – for instance, it protects developers from non-payment. While the promoter is required to obtain necessary documentation such as the completion certificate, the buyer is liable to be fined for delays in payment. Failure to register the property or comply by other regulations of the Act will lead to hefty fines and even imprisonment in certain cases.

All this may sound too good to be true – and in fact, it is for now because RERA is likely to come into full force from May 2017. All the individual state governments need to get their ‘acts’ together to comply with its requirements and adopt it.

The good news is that they do not have the option of not doing so – the Central Government has amply demonstrated that it is determined to push the Real Estate Regulation Bill through come hail or high water.

The Indian real estate market is currently showing positive signs of revival. Even as smaller builders struggle – now also because of the recent demonetization of larger currency notes – credible developers continue to launch new projects and raise funds to meet the committed completion timelines.

With RERA in place, several not-so-credible developers will go out of business. Buyer will be protected from players with ulterior motives – in short, fly-by-night operators. This will, in turn, infuse a much-needed positive sentiment among buyers and consequently help increase demand.

Increased sales will improve the cash situations of the credible developers that remain after the weeding out, and projects will be automatically delivered in time.

real estate law

Should You Wait For RERA Or Buy Now?

At the current point in time, because of the lower demand seen over the last 2-3 years, property prices across India’s major cities have sunk to incredibly low levels. Buyers have a wide range of options in locations, budgets, amenities and – perhaps most importantly – in developers.

In previous times, buyers with budget constraints could only consider projects by builders with doubtful reputations and questionable business practices. This is no longer the case – today, a home in a quality project by a trustworthy and reputable developer is very much an option even within a modest budget.

RERA will take another year to be implemented; meanwhile, there are other dynamics which are changing on the Indian property market. Reduced pricing coupled with attractive deals in most cities, and the fact that more and more fence-sitting buyers have run out of patience and are coming onto the market with firm ‘buy’ decisions, have kick-started the modest but very real recovery we are seeing on the residential market.

In Pune, we have witnessed a 25% increase in buying activity in high-demand areas like Undri-Pisoli, Ambegaon, Bhugaon and Wagholi in the last 4-5 months alone. In Mumbai, buying activity in Navi Mumbai, Thane and some other relatively affordable areas has also picked up significantly.

What does this mean for property buyers? Very simply – any revival in buying activity eventually leads to increased prices. Such is the immutable law of demand and supply. Given that demand is increasing steadily even now, property prices will begin rising even before RERA becomes a market reality next year.

What Experts Say

Industry watchdogs unanimously agree that there is no scope for current property prices to decrease further. Whatever correction in prices could happen has happened, and developers cannot reduce prices further even if they wanted to – doing so would, in many cases, seriously impact their ability to stay on the market.

In fact, RERA will mean that promoters will be bound by more procedures, and this may increase the cost of their projects – costs which are likely to be passed on to the consumer. In other words, RERA could be instrumental in inducing cost escalations in many cities.

It should be noted that while RERA will ensure that unscrupulous developers and their business practices will be driven off the market, it will simultaneously ensure that builders with sound reputations and impeccable track records will become stronger.

One of the most important intentions of the new law is to support such developers so that they can continue to serve the needs of property buyers in the wholesome and transparent manner which they are known for.

In short, for buyers who have no intention of dealing with any but the most reputed developers, there is no real advantage in waiting for RERA to kick in. If one is working with a reputed developer, the privileges, benefits and safeguards that it will bring already apply today.

Another valid argument against waiting for RERA before buying a property is that that once the Act is in place, it will become mandatory for builders to invest extra time with regulatory bodies to work along the extensive details of construction plans, clearances, approvals and other details related to their new projects. Paradoxically, this will in fact result in delayed deliveries where the opposite effect was actually intended.

Even though many buyers feel that they should wait for RERA to be implemented before buying a flat, the fact remains that there are already many builders with strong reputations and credible market practices.

Buying a property from such a player now instead of later can turn out to be wise decision if RERA results in upward pressure on prices. Also, if one is looking to make the most of current attractive pricing and offers, there is actually no better time than now.

The time and effort spent in taking advantage of the favorable market dynamics existing today will prove to be the soundest investment. The sole proviso is that one should only patronize a reputed developer with a good track record for delivery and construction quality.

About The Author

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

How Education Influences Pune’s Property Market

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

Jawaharlal Nehru named Pune the Oxford of the East, and this title is more than well-deserved on account of the many schools, colleges and management institutes that the city boasts of. Each year, Pune attracts tens of thousands of students not only from India but all over the world.

A lesser-known fact is that Pune’s real estate market is a direct beneficiary of its highly developed educational environment. People in Pune are willing to invest considerably in their children’s education, and this includes a willingness to pay more for a home located close to a good school or college.

In fact, if we study the check-lists of features that most homebuyers in Pune consider important, more than 35% list proximity to good schools and colleges non-negotiable.

Also most of the migrants from other states generally fall in love with Pune and settle here. This also leads to demand for more houses  near the proximity of the schools as this is a most logical step for anyone to raise a family.

Not only that, but a significant number of homebuyers – predominantly young working couples – are willing to compromise on other aspects such as proximity to entertainment and even workplaces in order to secure a home close to a good school.

For these people, the welfare of their children ranks higher than their own convenience. What is even more interesting is that not all of these homebuyers are married or have children. Why do such buyers consider proximity to good educational institutions important while selecting a property?

The answer is as simple as it is profound. On the one hand, married homebuyers with children are definitely interested in quality schools and colleges because of the educational opportunities they offer. Such homebuyers have either just starting a family or are planning to do so soon.

Either way, they are considering the future of their children and are even ready to pay more for smaller homes in order to secure their chances of a good education.

In the larger context, however, most property buyers and investors in Pune understand that the availability of good schools in a neighborhood contributes directly to the overall value of the locality’s real estate.

Obviously, Pune’s educational districts rank very high as property investment destinations. This is underscored by another very interesting fact – namely, the resilience of the property values in areas of Pune which are close to the good schools, colleges and management institutions.

child in school

In the past, these areas did not see any drop in property prices even when other localities were seeing price corrections.

Historically, homebuyers focused on these areas of Pune were willing to make all kinds of compromises in order to secure the education advantage. They were ready to settle for smaller homes in projects without clubhouses and swimming pools, in congested areas without malls or any kind of organized shopping nearby.

Over time, these constraints have given way to some extent. Developers who were able to secure redevelopment rights in some of the core areas of the city were able to build more modern residential complexes which have a decent share of lifestyle amenities.

While examining the correlation of Pune’s educational institutions and the property pricing in the areas around them, some may argue that good schools and colleges have led to the higher appreciation of these areas.

The rationale would appear sound – homebuyers in Pune will always prefer residential projects located near an educational district and are ready to pay higher rates for them. So have Pune’s good schools, in fact, helped drive up the property prices in these localities?

Maybe so, but this is an incomplete argument at best. The fact remains these areas are also defined by higher historic affluence and that this affluence has triggered the development of high-quality schools there. There is no doubt that in Pune, the best schools and colleges are in localities defined by a higher standard of living.

In the final analysis, what perhaps matters most from a property market perspective is not the nature of the relationship between education and property values in Pune, but the simple fact that the relationship definitely exists.

Developers with projects in and around Pune’s educational institutions are able to ask for higher prices, and homebuyers are generally willing to pay them.

About The Author

 Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township, Astonia Royale in Ambegaon.

Pune’s Real Estate Market – At The Cusp Of Revival

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd

It’s a much-asked question – is this the right time for first-time home buyers, or should they wait as there is another price correction expected? In a price-sensitive real estate market like Pune, this question has been asked for more than a year now, and the market’s answer has been quite consistent.

There appears to be no possibility of  further price corrections in Pune. Demand in the right locations and at the right price points has returned, which means the right kinds of properties are selling. Rather than a price correction, it appears that  it is likely to be appreciation which is on the cards once again.

First Homes Market – Returning Rationale

The prolonged market slump from which many of the Indian cities are only now beginning to recover certainly served an important purpose – that of bringing property prices down to their lowest possible levels.

As market pundits have correctly pointed out, the only way for inherently strong markets like Pune is up going forward. However, as of now, the advantage still lies squarely with the buyer. The current time is, in fact, optimal for first-time home buyers to make their play.

For a while now, property valuations in Pune have been at their lowest point. Also, there are very good value-adding offers available, especially in terms of innovative financial structuring.

The financial burden of buying a home in Pune has indeed never been easier to bear than today. Many leading developers are now proactively assisting buyers to reduce the financial implications of buying a home in their projects by way of attractive schemes.

Among the most successful offer available in Pune right now is, all-inclusive rate packages, which include all the usual add-on costs such as stamp duty, registration and VAT.

EMI holidays have also found some favour, though buyers considering such a scheme must definitely carefully study the fine print and long-term implications of the offering.

Second Home Market – Once Again Gaining Traction 

Apart from the first-home market, we are also seeing a revival in Pune’s second home market. Buyers who have been hoping to buy second properties to house their extended families or as investments are finding this the ideal time to make a decision for purchasing the second home.

However, to accurately gauge the exact nature of the revival in Pune’s second homes market, one needs to understand its exact nuances. It is a common error to equate second home with holiday homes in remote locations.

real estate development

This particular market segment, in fact, continues to languish across the country for lack of demand. It usually thrives only during periods of prolonged economic prosperity and protracted vibrancy on the primary homes market.

It is only when people have been secure in their jobs for a sufficiently long time and seen a series of salary hikes that they see any rationale at all in investing in ‘non-performing’ real estate assets like holiday homes. During any other time, they will usually focus only on buying properties which serve the primary need of accommodation or rental income generation.

Investment Advice

Regardless of whether one is looking to buy a first or second home in Pune, the basic success fundamentals remain the same. One should go for locations which are close to primary workplace areas which have a good saturation of office complexes, if one can afford it.

Other important aspects to focus on are the availability of good social and civic infrastructure like schools, hospitals, shopping, etc., and presence of public transport.

With regards to whether one should opt for under-construction or ready-to-move projects – both options have their distinct individual merits, so it is not an either-or scenario at all.

While under-construction properties cost less, one should only consider this option if the developer is reputable and has a good track-record of timely completions. Currently, some builders are offering attractive packages even for ready possession flats – serious end-users and investors should certainly not miss this chance.

Finally, a guideline to pure investors (as opposed to pure end-users) for managing expectations is in order. High capital appreciation may not be a factor in Pune at the moment, which is precisely what has led to the amenable prices prevalent on the market today.

Pune’s real estate market currently stands at the cusp of revival; it is expected that it will take at least 2-3 years for substantial appreciation numbers to become a norm again across all locations.

The investment factor to zero in on currently is good rental potential, which is certainly a possibility in high-performance locations such as Undri, Ambegaon, Wagholi and Bhugaon. For optimizing rental income potential, the flat’s size, amenities, location and builder’s brand value must be considered as integral.

About The Author

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

Should You Buy A Home In Pune This Festive Season?

Kishor Pate, CMD – Amit Enterprises Housing Ltd.

There are many reasons why people decide to get off the rental housing bandwagon and buy their own homes. One of the most important ones is that a self-owned home is an investment-grade asset which appreciates and safeguards one’s financial future.

Also every family has a cherished dream of having their self-owned house, which is a lifetime shelter for them as well as for the future generations.

Having a home of their own is the fondest wish of every Indian family. Among other things, the Indian festive season celebrates wealth and prosperity, and nowhere is this spirit displayed more strongly than in Maharashtra.

woman holding diya

For realizing the cherished dream of a self-owned home, all aspire to look for property during the festive season. Even from an investment perspective, buying a home in Pune makes more sense than ever before.

Property prices on Pune’s residential real estate market saw year-on-year appreciation to the tune of 7.9% last year – and though appreciation has moderated somewhat this year, the current market readings are still between 5-6%.

Price growth has been moderate in 2016 so that buyers are not discouraged from making purchase decisions, especially during the critical festive period.

However, given the positive investment scenario and increasing demand for office spaces in Pune, residential real estate demand in the city is going to pick up tremendously in the future. This increased demand is bound to exert upward pressure on housing prices.

In the last quarter of 2016, sentiment on the Pune residential property market has seen the return of outright positivity, and areas that offer better affordability and returns on investment have been receiving healthy traction.

Most of the residential project launches in the city have been in the North-West and North-East regions, with the highest demand for housing emanating from the IT/ITeS, BFSI and manufacturing workforce. Areas like Ambegaon, Kharadi, Hadapsar, Balewadi, Hinjewadi, Nagar Road and Wagholi and Nagar Road have continued to attract good demand on the basis of improved connectivity with the key business districts.

However, it is the fringe areas of South-East Pune – specifically Undri and Pisoli – which have seen the most notable pick-up in demand, leading to a significant number of launches over the past few quarters.

Relatively lower property prices and good connectivity to central areas with their reputed schools, hospitals and other important social infrastructure has led to the strong emergence of South-East Pune as a real estate contender.

All in all, given the attractive offers and pricing schemes from developers and the continued affordability of the city’s emerging areas, this festive period brings with it a strong rationale for homeownership.

For investors, the time is right to identify the hottest growth corridors and make their play before they miss the most favourable entry point and have to contend with higher prices in the future.

About The Author

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

Pune’s Suburban Real Estate Transformation

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

One does not tend to think of Pune a Metro city, especially when compared to neighboring Mumbai. Unlike Mumbai, however, Pune has the benefit of being able to grow spatially and it has been doing so at a very rapid rate.

With the constant absorption of surrounding villages, the city will at some point overtake Mumbai in terms of developed and developing urban areas. Even today, Pune’s suburbs account for a massive geographic spread – and these suburbs are seeing the highest rate of affordable and mid-range housing development.

As of today, Pune’s suburban market includes areas like Ambegaon, Undri, Baner, Pashan, Warje, Bavdhan, Dhayari, Katraj, Mohammedwadi, Mundhwa, Manjri, Hadapsar, Daund, Kharadi, Wadgaon Sheri, Dhanori, Pirangut, Hinjewadi, Kalyani Nagar and Koregaon Park, Wagholi, Chakan, Fursungi, Saswad , Katraj, Chikhli, Kasarwadi, Kalewadi, Phugewadi, Pimple Saudagar, Pimple Nilakh, Pimple Gurav, Tathawade, Thergaon, Talawade, Sangvi, Wakad, Dapodi, Hinjewadi, Bhosari, Pimpri, Chinchwad, Dighi, Nigdi, Moshi, Charholi Budruk, Ravet and Akurdi.

Given the vast multitude of locations in Pune which can technically be classified as suburbs, we can immediately see that some of them perform better than others. Suburbs closer to the city’s IT / ITeS parks perform best, as they attract steady demand from buyers with stronger budgets.

Because of this, such locations also see better civic and social infrastructure being put into place. Other suburbs have large integrated townships being developed. Many of the extended suburbs are currently seeing only budget housing being developed; however, as these suburbs see infrastructure creation and pick up on the back of spill-over demand from saturating areas close by, they see corresponding improvements in their profiling.

Contrary to popular belief the suburbs are, in fact, where the actual real estate action lies. In a growing city like Pune, the common misconception is that the most valuable real estate locations are in the city center. Of course, housing options in and around the center of the city will always see demand thanks to the proximity to the Central Business District and Secondary Business District.

However, many of the central locations are also unaffordable and congested. Developers are usually able to acquire only very small land parcels in central areas – plots which will accommodate only a limited number of flats in the housing projects.

astonia classic_night

Since the available space on such plots is very restricted, these developers offer very limited amenities or no amenities in these projects. As a result, residents have few of the benefits which a modern urban life should provide.

At the end of the day, what one sees is minuscule strangulated residential areas that offer little or no lifestyle accoutrements while simultaneously adding to the urban issues which defines almost all inner-city living in Pune today.

As a result, Pune’s peripheral suburbs and newly emerging real estate markets are the hottest residential property destinations, drawing considerable interest from residential property investors who are attracted by the high demand in these markets as well as the fact that property valuations have sufficient potential for healthy growth.

Some of the best-performing suburbs which host well-facilitated projects by reputed developers are Ambegaon, Undri, Hadapsar, Baner, Wakad and Hinjewadi. These suburbs are more or less driven by Pune’s burgeoning IT/ITeS sector which has proved to be the single-largest booster for residential and commercial real estate in the city.

While properties in and around the IT hubs tend to be too expensive to attract the bulk of end-user and investor demand, areas that are well connected to these employment generators while at the same time offering lower property prices are very hot tickets indeed.

About The Author

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

The Time Is Right To Buy A Ready-Possession Flat

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

Do ready-for-possession or close-to-possession homes make more sense than properties which will be delivered only 2 to 3 years down the line? There was a time when the answer of most end-users and real estate investors would have been a resounding ‘No’.

After all, it is common knowledge that ready-possession homes or homes which would be delivered in six months or less were costing more by about 30 to 35%. In price-sensitive markets like Pune, paying such a premium merely for the benefit of earlier possession made no sense at all.

The budget constraints of end users aside, even investors would shy away from paying such higher price, since they are obviously focused on entering at the lowest possible point and exiting when the property has appreciated sufficiently.

They were certainly not open to foregoing the highest possible returns on investment for ready-possession flats, even if it meant being able to rent them out sooner. After all, the potential resale price would still take a massive beating.

The Current Scenario

Thanks to the protracted slowdown on the property market in most Indian cities, developers across the country have witnessed their inventories piling up.

Reduced sales traction has induced a major sea-change in their pricing strategies, resulting in ticket sizes coming down even in ready-to-move properties in their projects. This has proved necessary because selling existing inventory is the only way they can build capital to fund future projects.

In fact, there has never been a time in the history of the Indian real estate market when properties which are ready or close to possession were so cost-effective. The property market has stabilized.

Quality properties by reputed developers in very good locations are now available at prices which were previously possible only if buyers were willing to wait for two years or longer.

Sound Rationale For Both Options

The option of opting for quick possession or under-construction projects is debatable. In the current scenario, it is for the individual to decide on the budget and on the urgency of buying a house. Individuals with long-term requirements who also need relief in the payment of installments should definitely opt for under-construction projects.

Today, most builders have come up with the scheme of pre-payment of EMI, which helps in reducing the interest burden and monthly EMIs. While opting for this route, the builder should be selected wisely to ensure the safety of one’s investment – only builders with a good reputation and financial background should be considered.

However, buyers in need of a home for immediate possession who have the requisite funds arranged for and are keen to dich their landlord for good have never been in a better place than today.

Colori Phase 2 Undri

As things stand today, buyers who are eyeing popular growth corridors like Pune’s Undri can actually buy a 2 BHK flat from a reputed builder which will be delivered within six months or less, at all-inclusive prices which they can very much afford. Simultaneously, there are projects offering the under-construction opportunity.

It should be noted that real estate markets across India are beginning to revive, and prices in Pune – a city which held on to its strength as a preferred investment hotbed – will start increasing significantly within the next 6 to 8 months.

Advice To Buyers

In the existing market environment, it is easy to be confused by the various seemingly attractive offers that most developers are doling out. In fact, quite a few players have officially announced astounding rate cuts on their projects in the hope of generating faster sales.

Buyers should be aware that such offers are almost always tied to projects which are in the earliest stages of development, and often have hidden costs or features which are not in the best interest of buyers.

Buyers must therefore assess the builder by his previous track record and study the projects he has completed so far. The cost should not be only aspect which should be weighed for taking decision while buying a property.

In fact, the price aspect should be the last one to consider – once committed to a builder or project, the buyer is tied to his or her choice.

About The Author

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

The Legacy Of Bungalows In Pune Real Estate

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

Pune’s residential real estate market has come a long way – especially in formats. From huts to ‘wadas’, and from there on from individual, owner-built units to modern apartments, the landscape has been changing constantly.

Today, tall, modern apartment buildings reach for the skies all over Pune, jostling for space with commercial developments and older, smaller buildings.

However, none of the residential formats available now and in the past have had such enduring appeal as bungalows. There are good reasons for this. To begin with, Pune is a city with a unique blend of individualism and solidarity.

This is evidenced by the properties being maintained by the city’s more prominent families – private and beautiful, they provide a safe haven for the inhabiting families within while sending out a clear message of their social status.

Secondly, a bungalow is the only residential format which offers complete and unequivocal ownership – no part of it is part of anyone else’s property. As such, a bungalow owner is a true ‘lord of the manor’.

There are no society rules to crimp one’s lifestyle, and every part of a bungalow is a firm possession. This factor was aptly brought out by a renowned spiritual master from Coimbatore who held a discourse in Pune several years ago.

A man who had grown up in and among the highly individualistic homes that defined many South Indian cities back then, he had been invited to dwell in the home of one of his disciples in the city. This, he recalled, was his first encounter with the modern ‘flat system’.

He quizzed his disciple about the flat format, and was perplexed to discover that no part of the flat was really wholly owned. The walls were common to other flats, the ceiling was somebody else’s floor and the floor was somebody else’s ceiling.

Simplistic though it may seem, this evaluation is actually quite accurate. A bungalow is the only format of built residential real estate that is an owned asset in the truest sense.

Thirdly, a bungalow offers the ultimate work-life balance option for those who have made it in life. The bungalows of most of Pune’s elite function as homes as well as workplaces for their owners. With enough space to separate work from family life without overlap, bungalows offer the highest form of luxury and convenience to business owners.

Alpine Twin Bungalow in Bloomfield, Ambegaon
Alpine Twin Bungalow in Bloomfield, Ambegaon

Fourthly, the security of a bungalow is matchless if it is part of a modern township in Pune. While isolated bungalows on the outskirts definitely face security threats, bungalows in avant-garde townships such as Bloomfield – a luxury residential project based on the Singapore theme – have the advantage of the highly efficient, yet non-intrusive security of the project.

This unique blend of security, privacy and autonomy in bungalows is the result of Pune’s rapid progress towards Western living concepts.

Finally, a bungalow offers the ultimate bridge between generations, allowing large families with members of all ages to cohabit is a perfect harmony of space, privacy and safety.

Despite their unique characteristics, bungalows are becoming very scarce in a city that treasures individuality as a tradition and a life value.

Because of the economy of scale that residential developers in Pune must pursue as a business model, most available plots are now being used for the development of apartment buildings.

However, Pune still offers a limited number of exclusive bungalows to those who will not compromise on the right to privacy, total ownership and a lifestyle above and beyond the common denominators.

About The Author

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

 

 

Festive Season 2016 Marked By Improved Realty Sales

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd

To align with this year’s festive season, real estate prices have moderated to a significant extent in many markets. Also, developers have been proactively rolling out attractive offers and schemes, which have ensured that the 2016 festive season presents a visibly improved picture in residential sales.

A vast number of fence-sitters have been returning to the market with firm purchase decisions. These are primarily buyers who were awaiting price corrections and offers from developers which make financial sense. Both of these have happened, and sales have increased by as much as 10-12% so far.

In cities like Pune, which still offer favourable price bandwidths to end-users and investors, we have seen an increased sales velocity of 15% in well-connected growth corridors like Undri-Pisoli, Ambegaon and Bhugaon.

The speed of sales will increase by 12-15% in most markets by the peak of this year’s festive season. All-inclusive pricing packages which include VAT, stamp duty and registration have been the most successful offering by far, as these negate the financial uncertainty of hidden costs.

Another factor which has helped increase sales velocity is developers’ readiness to bargain with genuine buyers so as to achieve a price which works for both. Another influencing factor has been faster infrastructure development in emerging locations, thereby rendering them more attractive as residential destinations.

That said, not all projects have been performing equally. With the recent media spate surrounding illegal constructions in cities like Pune, buyers are now showing a marked preference for projects by reliable, reputed builders in superior locations.

woman holding diya

Also, flats which are either ready for possession or within six months of possession have been drawing the most amount of interest. The fact that the increased demand is almost exclusively for projects by well-established developers is significant – buyers and investors are in no mood to gamble this year.

The increased sales velocity of this year’s festive season will probably not sustain during the remaining part of the year, but there is absolutely no doubt that buyer sentiment has improved significantly.

To sustain the forward momentum, builders will have to complete their ongoing projects with convincing speed and provide all the promised amenities to satisfy their customers.

There has always been good demand for properties priced within the bandwidth of Rs. 35 to 50 lakh; however, we are now seeing a resurgence of interest even for luxury offerings priced in the higher bandwidth up to Rs. 80 lakh-1 crore, as buyers and investors can see that the real estate market appears to have stabilized and bottomed out.

There is a marked improvement in overall sales velocity, and we expect to see a further turning point will come by mid-2017 and even earlier if the annual Union Budget is preponed and announces decisive benefits for the middle class.

About The Author

 Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

What Drives Housing Demand In Pune’s Kothrud?

 Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

Quality of life was once a defining characteristic of Pune, but thanks to the lag in infrastructure to support the rapid development in the city, this characteristic has become rare in most areas.

In previous times, it was of no real consequence where one purchased a home in Pune – all areas which saw real estate development offered a good quality of life. Today, while scoping the market for flats for sale in Pune, it is necessary to factor in a number of variables.

The most important aspects to consider are traffic congestion and pollution levels, whether the area offers a good availability of basic facilities and, of course, the overall ambience and quality of the neighborhood.

Kothrud, a western suburb of Pune, is one area which has always offered residents a very high quality of life. It is one of the core traditional areas of Pune from very early times. In fact, it features prominently in the recent Hindi blockbuster film ‘Bajirao Mastani‘ because it is in Kothrud that Mastani’s resided.

In the era of the Peshwas in which ‘Bajirao Mastani‘ takes place, the area was called Kothrud Baug. It still boasts of several high-profile landmarks such as the Dashabhuja temple and Mrityunjaya temple, which date back to the glorious times of the Peshwas.

Kothrud has always been a highly progressive area, seeing many ground-breaking infrastructure projects far ahead of the rest of the city to make living here more convenient and comfortable. In fact, the city’s very first flyover connecting Karve Road to Paud Road, was erected in Kothrud. It also has superlative connectivity to various parts of the central city via Karve Road.

Situated in the veritable nerve centre of Pune, Kothrud has witnessed rapid growth in its housing sector and was, in fact, identified among the fastest developing suburbs in Asia in the 1980s.

Considered one of the most upscale neighbourhoods in Pune, Kothrud has also seen rapid growth in its real estate prices. Kothrud was among the first of Pune’s suburbs to be developed, with its latter-day development beginning in the late 90s. In those years, Pune still held fast to its tag as Pensioner’s Paradise.

There was little economic activity happening in the city in those years, until Pune’s IT/ITES boom began to take hold in 2000-02. Even then, Kothrud was already a fully-developed residential location. This is why this area did not suffer from the over-development that beset areas like Aundh and Baner in the West and Viman Nagar in the East when they got on the IT/ITES bandwagon.

Throughout, Kothrud has been seeing a lot of demand from real estate buyers from both within the city and neighbouring Mumbai. Given the massive amount of interest from both end-users and investors, developers in Kothrud have always been offering progressive housing formats and succeeded in making it one the most desirable core area to live in.

Source: Google Maps
Source: Google Maps

Real estate buyers and investors are attracted to Kothrud both for its superior housing options and the convenience of living there. The civic infrastructure is top-grade, and the social infrastructure in terms of shopping, educational institutions and hospitals is matchless.

Today, because of lack of developable plots and new housing projects largely happening in the form of redevelopment, new housing options in Kothrud are scarce on the ground even while demand continues to be enormous.

In the midst of this crunch for living spaces that befit the expectations of buyers considering Kothrud, Amit Enterprises Housing has launched its high-end project Ved Vihar. The project consists of four towers exclusively offering 2 and 3 BHK luxury flats, and is therefore perfectly aligned with the demand profile of this happening location.

With quality of life ranking as the top consideration for home buyers in Kothrud, housing projects must deliver on all fronts. Even as compromised infrastructure, air pollution and traffic congestions plague most of the other parts of the city, Kothrud is still a haven from the mounting humdrum and chaos.

However, this alone is not enough in real estate market terms. Given the premium pricing of this location, home buyers also expect the very best in amenities and facilities. Developers who provide these in their housing projects are seeing the highest demand.

About The Author

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury projects like Montecito in Sahakar Nagar and other premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

Amit Enterprises conducts unique customer engagement activities for Ganesh Chaturthi

Pune, September 8 2016: Leading Pune-based real estate developers Amit Enterprises Housing Ltd. has announced a slew of innovative celebration activities around this year’s Ganesh Chaturthi festivities. With the aim of fostering community bonding among homeowners in AEHL’s various housing projects, the firm has organized  a Ganpati Decoration contest with various attractive prizes for winners.

Poster_Final

Rohan Pate, Director – Amit Enterprises Housing Ltd. said, “These activities began at AEHL’s Ved Vihar in Kothrud on September 6th, where they elicited a huge response. We are now taking the same schedule to Treasure Park on Satara Road and further to Astonia Royale and Bloomfield in Ambegaon on 10th, 12th and 14 September respectively.

As part of these activities, AEHL is also organizing a mimicry show by renowned performer Makaranda Tillu, entitled ‘Hasanyasathi Jaga and Jaganyasathi Hasa’ for the benefit and enjoyment of the residents.

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Social engagements of this kind are important to encourage a sense of fellowship among property buyers who have demonstrated their faith in a reputed real estate development firm. This activity has helped not only in customers to socialize but also enable very young and older people who cannot generally participate in the larger celebrations held in the city to enjoy the Ganesh Festival.