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.

Tillu_12x18

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.

How Ultra Luxury Housing Defies All Market Trends

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

In India, the definition of luxury housing varies from city to city, and the demand for luxury homes in each city also differs. A plush 2 BHK flat in a central location or in an area near to corporate or IT employment hubs would qualify as a luxury home in Mumbai, Pune or Bangalore solely on the basis of location.

However, the classic Indian concept of a luxury home also involves generous size – so a 3 or 4 BHK apartment is definitely defined as luxury. As a rule, such luxury flats are built only by developers who have specific expertise in this genre, as apart from large size, customers look for highly evolved amenities and facilities to create the necessary luxury ethos.

What Drives The Demand For Luxury Homes

It is a mistake to club the demand for ultra-luxury housing with that of the rest of the property market, because the dynamics are very different. In the first place, the luxury homes market tends to be quite end-user centric in many cities.

The higher ticket sizes mean that only investors with considerable capital at their disposal are active in the luxury segment. The end-users who largely patronize the luxury housing segment generally do not need housing loans but buy such properties from their own capital, being from the affluent class.

Cities like Mumbai, Pune, Bangalore, Chennai and Delhi have their well-established high-value luxury homes locations. The people who live there have often been residents for several generations and are not open to relocating elsewhere.

These locations tend to have a rich share of natural ambience due to limited development norms being enforced there, and at the same time a high degree of social infrastructure which ensures that life there is trouble-free and convenient.

Among this location-driven buyer set, the demand for genuine luxury homes is considerable. Due to very limited supply in these areas, such properties often tend to change hands among this specific buyer segment.

Prices for such ultra-luxury homes are a function of both the high-value vanity addresses and the size and configuration. Rarely, a large family-owned property will be sold and redeveloped into limited-edition boutique homes which are immediately snapped up.

We can see this dynamic actively at play in areas like Cuffe Parade, Nepean Sea Road, Worli, Juhu and Lower Parel in Mumbai. In Pune, the specific areas for such luxury housing are Sahakar Nagar, Boat Club Road, Kalyani Nagar and Koregaon Park.

Since they are meant to function as family estates, luxury homes in such areas doubtlessly need to get the size factor right. Such extra-large ultra luxury living spaces are naturally expected to offer ultra-modern luxurious amenities which can be upgraded as technological advancements push the luxury envelope further up the value chain. These addresses may or may not be centrally located, but that factor does not, in any case, play a big role.

Montecito 3

Why Core Luxury Addresses Never Change

Spatial expansion of cities like Pune, Bangalore, Chennai and Delhi is constantly pushing the city boundaries further and in different directions. Simultaneously, new workplace hubs geared to the booming Information Technology sector spring up in the emerging locations, which IT companies prefer because of the lower property costs.

Residential catchments form around these IT hubs to respond to the demand for homes from their employees. These new residential areas usually see high demand for homes of all ticket sizes, including the more expensive ‘green homes.’

While these higher-end homes definitely fall in the category of premium housing, the locations themselves do not spell luxury. The same dynamic can be seen around large manufacturing hubs, where premium housing can be found in locations which have essentially have an industrial, blue-collar image.

Through all this expansion, a city’s core luxury address locations remain static and continue to hold sway even as the city itself grows in all directions.

These addresses have very little to do with Indian real estate’s primary growth driver, which is employment generation. They are the home of the city’s landed gentry – its long-established core of wealth.

Though property owners in these locations are often owners of very large businesses, they themselves are not dependent on quick access to workplace hubs. They have earned a far more leisurely life long ago, and their main objective and prerogative is to dwell among their peers in an environment untouched by the mass development in every other part of the city.

Immune To General Market Dynamics

The demand for luxury housing in these elite locations is therefore always steady. Developers who have the rare opportunity to create new luxury housing projects there will invariably have a dedicated inner circle of HNI buyers and investors who will snap up their limited-edition offerings.

Such housing is more or less impervious to the influence of recession, as the buyers are not dependent on home loans but largely use their own capital to buy such housing. The demand from investors and HNI end-users for luxury housing in the traditional core areas of the city is therefore always present.

When the opportunity to acquire properties in a new luxury project in such an area presents itself, such buyers will enter the project at the pre-launch or under construction stage to avail of the best rates.

The marketing strategy for homes in a city’s core luxury areas also differs significantly from the kind of campaigns developers use to promote mid-income housing projects. The marketing approach focuses more on the aspiration for exclusiveness and status among people who can afford to avail of it.

While word-of-mouth communication among core investors usually suffices to draw massive inquiries, developers will also advertise these offerings in prestigious lifestyle magazines, airport lounges and similar platforms.

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.

Sahakar Nagar – Pune’s Most Aspirational Neighbourhood

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

Pune is witnessing a very high rate of cross-border cultural exchange, with an increasing number of its citizens traveling abroad even as more and more international tourists explore the city each year.

The IT culture, glitzy shopping malls boutiques offering the latest in global fashion trends and international schools are all part of this process of cultural homogenization. Pune has become a truly cosmopolitan city, thanks largely to the influence of its burgeoning IT sector.

Nevertheless, the historical Pune – the city which holds on to its traditional values and outlook – continues to exist. Because of the mass-scale development happening all of the city, it is less visible today than it was just ten years ago, but the spirit of Punyanagari lives on in its core areas.

Sahakar Nagar is perhaps the most prominent of these strongholds of Pune’s traditions.

Sahakar Nagar needs no introduction to citizens of Pune. This elite residential area is one of the oldest, greenest and most respectable addresses in the city. The area was developed after the 1961 floods in Pune, and has become a prominent location today.

Sahakar Nagar is home to some of Pune’s most established businesspersons, politicians and movers and shakers, and has been a very exclusive and largely closed real estate market for decades.

Simultaneously, Sahakar Nagar represents a unique balance because it has retained the city’s traditional Marathi culture while at the same time evolving to keep pace with the times.

Aerial view of Sahakar Nagar, Pune
Aerial view of Sahakar Nagar, Pune

From the outside, the tranquil dignity and old-world charm of this venerable residential location gives no visible indication of change. However, Sahakar Nagar has been seeing a constant process of reinvention which has resulted in excellent civil infrastructure.

This area is unique in yet another aspect. Because of the fact that the residents of Sahakar Nagar will never want to move anywhere else, getting a resale home here is a huge challenge. Also, since it is fully developed and occupied for several years now, there is next to no new residential supply.

Sahakar Nagar is one of the last predominantly end-user driven locations in Pune, though investors are always keen to make a play in this distinguished luxury neighbourhood. It is a genuine stronghold of the city’s elite and affluent families that has never been open to investors.

The past few years have seen no new projects at Sahakar Nagar because of the lack of land. The primary residential configuration at Sahakar Nagar is bungalows and villas, which comprise most of the housing landscape of this high-profile location.

The resident profile primarily reflects Pune’s orthodox Hindu Brahmin community, which has helped preserve Sahakar Nagar’s reputation as one of the last outposts of the city’s traditional roots.

The location itself is perfect. At a high elevation, it offers a breath-taking view of the Parvati/Taljai hill area as well as thick reserved forest lands. Bharati Vidyapeeth, one of Pune’s most upscale educational institutions, has its campus close by.

The Pune-Satara road provides ready access to Swargate Bus Terminus, a vital transit hub in the heart of the city, as well as other key areas of Central Pune. The Mumbai-Pune Expressway is within easy commuting distance via the Katraj Bypass. Sahakar Nagar is also within a stone’s throw from City Pride Cineplex, and has its own integrated high street shopping area which most of the local residents patronize.

Thanks to its unmatched locational advantages and also its unique profile, Sahakar Nagar is a highly aspirational luxury address. Due to scarcity of developable space, top-class projects in the area are a focal point for high-end investors as well as families looking for prestigious permanent residences.

With next to no availability of residential units of any kind, Sahakar Nagar’s status as a stronghold of Pune’s elite stands unassailable.

Amit Enterprises Housing Ltd. established its foothold in Sahakar Nagar back in 2007 with the launch of the luxury apartment project 9 Green Park. This project was completed in 2012 and is, not surprisingly, completely sold out and occupied. However, another luxury apartment project by AEHL now offers the hope of home ownership in Sahakar Nagar to Pune’s discerning few.

Montecito Entrance Lounge small

Montecito – located adjacent to 9 Green Park – enjoys the most spectacular view yet of Sahakar Nagar’s legendary natural splendour. This ultra-luxurious apartments project, spread over 4.3 acres of Sahakar Nagar’s most breathtakingly beautiful hilltop location, consist of two 16-storied towers that offer 64 apartments backed by five levels of reserved parking. This unique project is designed by none other than renowned architects Talathi & Panthaki.

Answering the call for luxury living in Pune’s most treasured and highly exclusive residential addresses, Montecito is AEHL’s final brush-stroke on a priceless masterpiece called Sahakar Nagar – a location that always has, and always will, capture the very essence of all that is truly Pune.

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 homes towers and 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 Invest In Property In Another City? 

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

The understandable tendency of most property investors in India is to focus on the cities that they actually live in.

This is because they are already familiar with which locations see the highest demand and who the reliable and reputed developers are. Also, most people will have a fairly broad network of others people within their city who can advise them on potential property investments.

Yet, the Internet has opened the larger real estate playing field in India up more than ever before. A simple online search involving the keywords ‘buy home’ or ‘buy property’ will yield thousands of results from across the country.

And the trend is no longer limited to people who own computers – rapid smartphone penetration has opened up the Internet to a staggering number of people today.

According to a survey by Indiaproperty.com, the availability of user-friendly app’s and improved website designs have led to mobile-based property searches growing three times faster than PC-based searches.

This survey also established that real estate searches in Tier II cities, which have seen very fast smart phone penetration over the last few years, have grown 1.3 times over the national average.

The real estate data available for these cities is obviously available to all ‘netizens’. In other words, a larger number of geographies than ever before are drawing the attention of property investors.

For instance, Pune is a high focus area for real estate investors from Mumbai and Bangalore because of its amenable property prices, favourable appreciation statistics and the fact that properties in all budget ranges are available.

But how advisable or even safe is it for a non-resident to make a real estate investment in a city that he or she is not familiar with?

This question becomes even more important when one considers that the best prospects in terms of lower property prices and better appreciation are in such a city’s emerging corridors rather than its established real estate precincts. The first thing such a prospective investor needs to do is establish what kind of demand is driving such a location.

The primary driver for residential demand is job creation – if an identified city, town or periphery is seeing a lot of demand for homes from people who are attracted by a good job market, then it can be said to be a good residential property investment bet.

The other important variable is affordability. Quite a few non-metros as well as peripheral areas of larger cities currently qualify on these parameters.

Again taking the example of Pune – this city is classified as Tier II, but has a remarkable configuration as far as economic drivers are concerned. Pune’s economy and job market are driven by Information Technology and BPO firms, its vast manufacturing belt and a thriving services sector.

The steadily increasing demand for budget homes from employees working in all these sectors has resulted in a veritable real estate boom in fast-developing locations like Undri, Ambegaon, Wagholi and Bhugaon.

Amit's Astonia Royale in Undri
Amit’s Astonia Royale in Undri

However, these areas are being developed by both large organized builders with a strong market reputation and unknown small-time players with no verifiable track record. The question that any investor needs to ask in such a scenario is who to trust. This brings up the second important factor for an investor to focus on – namely which projects to invest in.

One of the aspects to be fully investigated is the reliability and market standing of developers active in such a market. Though the recently announced Real Estate Regulation bill will eventually weed out all fly-by-night operators, the fact is that many unscrupulous developers have historically been active in emerging locations.

Such developers may not have obtained all necessary clearances for their projects or even have clear ownership of their plots. They may also engage in shoddy construction, and often lack the capitalization to see their projects to timely completion. Buyers are attracted by the lower property rates they offer in order to attract demand.

However, due to the high demand driving the real estate market in such locations, many reputed developers who have been delivering quality projects on time for a long time are invariably also active there. Investors should only patronize such developers so that they can avoid unforeseen risks to their investments.

It definitely makes sense to consider cities other than one’s cities of residence for property investment, especially if one’s own city does not yield very attractive returns on investment.

Investors from Mumbai are so active on the Pune real estate market because while property price appreciation all over the financial capital has been next to flat for over three years, neighbouring Pune has been seeing property price growth of at least 15-18% in many of its emerging areas, and rental demand in the city is also very high and increasing constantly.

Property investments in other cities should be done after a lot of research and preparation, but they can definitely be extremely profitable for those who do their homework.

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 homes towers and 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 Philosophy Behind Residential Project Names

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

The naming of residential projects can play a significant role in how much attention they garner on the market. While the name-selection process may sometimes seem random (and it sometimes is), there is more often than not a great deal of psychology and marketing thought behind it.

The idea is to create a certain impression and aspiration in the minds of the target clientele, and when this is done with enough research and sound marketing advice, this objective can definitely be fulfilled.

The philosophy behind naming a project is guided by the specific nature of a particular market in terms of overall ethos, social configuration and mind-set, and the type of clientele that the developer is targeting.

The developer will seek to find a name that ‘speaks’ the local language and also conveys the image or impression that he is trying to create. Usually, the developer will employ an advertisement agency to come up with a suitable name, and the shortlisting and confirmation of the final pick can be quite a drawn-out process.

For instance, project names with a Mediterranean image evoke visions of such countries and the ethos they represent. This ethos would include a lot of things, including a sense of chilled-out global ambiance, exclusiveness and social ‘arrival’.

Amit's Astonia Royale in Undri
Amit’s Astonia Royale in Undri

Such names are usually given to themed gated projects and townships wherein the developer has gone to considerable pains to recreate the identified cultural ethos in the project with its specifications, amenities and design, including the interior decor of individual units.

With yet another category of project names such as those that evoke a certain cultural ethos, the intention will be to attract buyers from a certain community within a city.

Such names may seek to speak to buyers from the traditional ‘core’ sector of the city, which would like the thought of being able to include such a name in their address.

However, this is by no means a given. The name selection may also be completely random and based on no such particular intention. At times, the name may have absolutely no bearing on anything that the project actually is, and this phenomenon is often seen in the case with mid-income housing projects.

In today’s market scenario, there is no shortage of highly imaginative and well-researched project names. By the same coin, there is also no shortage of bizarre project names where one tends to wonder what exactly the developer was thinking.

In the past, the process of naming a project was a lot simpler and less meditated. Previously, a number of good names were up for grabs – today, there is high competition among developers to find the best possible names.

Developers will seek to keep the names of their projects a secret until they are ready to unleash the complete marketing campaign, to reduce the chances of competitors plagiarizing these names for their own projects. As of now, there is no well-defined ‘copyrighting’ mechanism available.

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 homes towers and 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.

Compact Homes: India’s New Urban Living Standard

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

The parameters that drive urban living in India have been changing constantly. People from other parts of the country have been migrating into thriving cities like Mumbai and Pune to avail of the better job prospects there.

While real estate developers have been attempting to cater to the rising demand for housing, urban land prices have been rising and with them the cost of homes. This has given rise to the trend for compact homes near these cities’ main office locations.

Perfect residential solution in urban areas

The affordable prices of smaller homes are not the only reason why compact flats are now the first choice of people living urban areas. Of course, the price differential does play a major role. After all, bigger apartments of 3BHK and 4BHK configurations are very expensive.

At the same time, 1 BHK flats are considered too small for growing families. This is why 2BHK apartments are now in highest demands among urban families. Particularly designed for the working middle class, such flats are more suitable as well as affordable for nuclear families. In fact, the compact 2BHK apartment is now considered the new luxury standard.

Projects with 1BHK, 2BHK and 3BHK options are not new in a city like Pune, but they have some inbuilt limitations. The biggest limitation is that such projects result in very disproportionate neighbourhoods, with several families having bought homes in different budgets.

However, projects comprising exclusively of compact 2 BHK flats – a new trend that is catching on in a big way in cities like Pune – provide a setting where all home buyers come in at the same level. This results in uniform neighbourhoods whose residents are evenly matched at a socio-economic level.

Home Construction Plan

Why Compact Homes Rock The Middle Class

– The size is right: Compact 2BHK flats are small enough to be manageable for small nuclear families, yet large enough to accommodate their future growth in terms of children.

– Makes ‘space’ for other investments/expenses: Home buyers who are on a budget but still want to enjoy the benefits of a good, well-connected location prefer such flats. Real estate developers who focus on this demand segment are able to achieve economy of scale by building vertically on relatively smaller plots.

– Cheaper than larger apartments: While investing in a property, the primary concern for the Indian middle class is price. Not only are large properties that are extremely expensive out of reach for them, but the money that is saved by buying a smaller home can be invested elsewhere or utilized in some other manner to achieve yet another important lifestyle goal. Today’s upwardly mobile young Indians want to travel, invest in nice cars and get the best possible education for their children.

– Smartly designed compact homes maximize space: One of the first things one notices in many larger flats is that lots of space is wasted, or not being utilized optimally. Because space saving is not only a virtue but a necessity in urban areas. Compact 2 BHK homes can be designed in a manner that provides space for everything while no space is wasted. Such smart designs help in using smaller areas in the most effective manner.

– Easy to maintain: In today’s extremely busy and hectic life, they watchwords are convenience and low maintenance – especially in one’s home. Compact homes are easier and more cost-effective to handle and maintain than large apartments. Electricity bills and maintenance bills can be reduced significantly in such homes. Also, they require less furniture and décor.

– Freedom and flexibility to design the home: The interior design of compact homes can be designed easily and cost-effectively. Guided by the latest trends in compact home décor, young Indian families are able to transform their smaller flats into extremely stylish spaces within small but intelligently allocated budgets.

– Great savings on transportation: Transportation expenses can be reduced greatly with compact homes which are located in well-connected areas. Because the developers of such projects locate them in close proximity to commercial areas like offices, banks and shopping malls as well as, schools, colleges and hospitals. Thanks to their better connectivity and social infrastructure, well-located compact homes are becoming first choice of home buyers in urban areas.

– Higher scope of resale on the property market: The demand for compact homes in well-connected urban areas is rising constantly, with more and more people looking to purchase such properties and benefit from their many advantages. Therefore, the resale value of compact homes is always high and such homes are sold very quickly, as there are always prospective buyers. This means that owners of compact homes can exit their investments easily and at a good profit if they find the need to relocate or move into larger homes.

Small in not only beautiful but eminently practical and sensible for the contemporary urban citizen. With so many advantages to owning compact homes in well-connected neighbourhoods, this is one real estate market segment that will not only hold its own but grow exponentially in the years to come.

Such a home is the ultimate place to live in, as well as a matchless performing asset from the perspective of real estate investment.

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 homes towers and 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.

7 Reasons Why You Should Buy A Home While You’re Young

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

There are lots of arguments for and against buying a home early in life, but the rationale for doing so is, in fact, the strongest and most convincing.

  1. Lower EMIs

In the first place, the longer the tenure of a home loan, the lower the EMIs are. EMIs are calculated on the basis of the loan amount and how long the borrower can logically repay the home loan.

In India, the retirement age is 65, and banks will consider this as the age by which the borrower must under any case close the home loan if he or she has not done so already. The longer one defers the decision to avail of a home loan to buy a property, the bigger the EMIs become.

  1. Higher Eligibilty

It is easiest to get approved for a home loan when one is young.

Lenders are eager to provide home loans to young people because they are at the beginning of their careers, and will doubtlessly grow in them over the ensuing years. Their financial viability – and therefore their future ability to service a home loan – is therefore at its highest point.

In fact, the eligibility for a home loan is even higher for young married couples taking out a joint home loan. This is by far the most desirable lending scenario for banks.

Banks are assured that two, instead of only one income stream, will back the home loan proposal, and the fact that two instead of one borrower are involved decreases their risk.

Taking a joint home loan also helps a couple close down the financial commitment of a home loan much faster, allowing them to focus on other investments earlier in life.

  1. Upgrading to a Better Home

Another advantage of purchasing a home early in life is that it becomes easier to pay off the outstanding amount on a home loan with accumulated savings later in life.

This opens up the opportunity to upgrade to a bigger, better-located home is the future – which is what most Indians aspire to do at some point.

  1. Bigger Down Payments

Today, many newly-married couples are deferring their plans to have children until they have had a chance to enjoy some unfettered years together. Such a decision also works very well for such couples from the point of view of home purchase.

Home Buyers

It means that they can make a big down payment on their home before children and their education become an additional financial responsibility. A bigger down payment reduces the EMI burden, meaning that they can close their home loans faster.

  1. Greater Appreciation

It is also important to note that the earlier one buys a home, the longer it has to appreciate in value. Given that the annual appreciation of a well-located residential property can be to the tune of 15 to 20%, which results in a huge incremental increase of the investment value of such an asset.

  1. Income Tax Breaks

It also makes much more sense to invest one’s hard-earned money in an appreciating asset rather than pay monthly rentals for which there are no returns at all. Repayment of a home loan also brings with it the financial advantage of income tax breaks.

These are an added benefit which the Indian Government has provided with the express purpose of encouraging young citizens to invest in self-owned homes and thereby safeguard their and their children’s future.

  1. A Great Investment

Finally, it makes much more sense to pay monthly EMIs on a home loan, into an investment-grade asset, rather than pay monthly rent which is nothing but an expense with absolutely no returns on investment.

The above reasons should present a convincing argument for making the important decision of buying a home early in life.

The New Age ‘logic’ that it is better to live on rent simply does not hold water if one considers the multi-faceted advantages of investing in a self-owned home while one is young. It is true that it requires financial discipline to service a home loan, but this very desirable quality can never come too early.

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 homes towers and 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.