What Pune’s Property Market Needs From The Union Budget

Kishor PateKishor Pate, CMD – Amit Enterprises Housing Ltd.

The upcoming Union Budget will address the nation’s overall financial concerns, within the framework of powers vested in the Finance Ministry.

It is eagerly anticipated every year, since it announces policy changes which have a direct or indirect bearing on the economy, the industries that drive the economy and – not least of all – the common man.

These policies are formulated on the basis of a national perspective. In other words, they may not have same relevance in various States, since States have their own policy mechanisms.

It therefore makes little sense to expect the Union Budget to take into consideration the requirements of individual cities. Nevertheless, the broader policy changes (or lack of changes) do have a bearing on the economic situation within each city.

As such, Pune certainly does have expectations from the Union Budget 2013-’14. As an industrial powerhouse that generated enormous revenue for the Government and countless jobs for its citizens, Pune will be directly affected by the financial policy decisions that the Budget brings forth.

And one of Pune’s most dynamic industries, which provides livelihoods and also caters to the housing requirements of lakhs of people across all income segments, is real estate. Therefore, the city’s real estate market looks forward to positive policy announcements that will benefit it as an industry and also its many stakeholders.

On a macro level, it is expedient that the Union Budget rationalizes the existing home loan interest rates so that more Indians can begin to realize their deferred plans of home ownership.

Real estate and budget

Interest rates play a crucial role for many segments of this country’s society and are a key consideration for the LIG segment. The Budget should also reduce the income tax burden on the common man so that there is greater ability in and incentive for investing in self-owned homes.

The Budget should also introduce measures to increase FDI inflows into the country, and broaden the scope of external commercial borrowings so that more low-income housing can be created.

Pune is eminently placed for budget housing, thanks to its lower land prices, the availability of sufficient land parcels for low-cost housing and also developers who are still willing and able to cater to the affordable housing segment.

More foreign investment into the city’s real estate sector, both in terms of commercial spaces to generate more jobs and more housing, is a very real need.

Similarly, a more significant allocation for infrastructure development coupled with stricter guidelines on implementation of infrastructure projects would make a huge difference for Pune’s real estate market.

The increasing deficit of cohesive and comprehensive infrastructure is becoming a bigger problem for Pune with every passing year.

For that reason, we also expect that the Union Budget takes decisive steps to remove the bureaucratic hurdles to implementation of pending or deferred infrastructure undertakings.

The city needs to grow outward, and this is only possible if the emerging areas receive road connectivity as well as basic facilities such as electricity and water supply.

Finally, Pune’s developers look forward to an easing of funding for new projects. More project completions mean more competitiveness on the market, and competitiveness is what keeps prices in check. It is axiomatic that when supply becomes scarce, real estate prices rise.

Will Union Budget 2013-’14 deliver on some – if not all of these points? Will it give Pune’s real estate market reason to cheer? As always, the city waits with bated breath for some positive signals this year.

Image courtesy of FreeDigitalPhotos.net

Undri – The Ultimate Location

Kishor PateKishor Pate, CMD – Amit Enterprises Housing Ltd.

Undri has always been a logical residential property destination in Pune, but for many years it lacked the required infrastructure.

However, as NIBM Road became increasingly saturated, Undri started to come into focus. The revival of demand from the city’s manufacturing and IT sectors helped to encourage developers to concentrate more on this area.

Locations like Undri are ideal for offering residential options to these segments and at the same de-congesting the main city. The area, which is also temptingly close to Pune Camp, is now developing rapidly, and it is becoming a hotspot for residential property investment.

Undri has the advantage of being well connected to various key localities in Pune via various local and interstate highways and expressways while retaining its serenity. It has dense green cover protected by Government regulations.

Proximity to Wanowrie and NIBM gives ensures that residents in Undri have access to all necessities of daily living. It is an ideal residential real estate location, and one of the few in the more central part of Pune which still offer the city’s laid-back natural charm at affordable rates.

Home buyers as well as investors are very enthusiastic about this location, which offers cost-effective housing options to employees from the close-by IT/ITeS companies.

 Amit Astonia Classic 2 BHK Apartments near Bishops School in Undri Pune by Amit Enterprises

With the widening of the The Katraj-Kondhwa-Phursungi-Solapur highway, Undri’s all-round connectivity is going to increase dramatically. Moreover, it will soon be completely included within the Pune Municipal Limits, which will boost infrastructure development even further.

Amit Enterprises Housing Ltd has five major project launches lined up for 2013, and one of them will be adding to our existing presence at Undri with an affordable housing project.

2013 will also see the launch of another mid-to-high end residential project at Baner, a luxury apartments project at Aundh and a luxury homes project at Prabhadevi, Mumbai.

Ambegaon – A Return To Ambient Living

Kishor PateKishor Pate, CMD – Amit Enterprises Housing Ltd.

Ambegaon is going to be one of Pune’s most vibrant real estate boom areas over the next ten years.

Today, more and more home buyers are looking for locations that still offer the uncluttered beauty and bracing environment that once defined most of Pune.

For such people, Ambegaon is among the most obvious solutions. It offers hilly surroundings and generous greenery, and the availability of land still permits construction of large township projects.

Thanks to its proximity to Katraj, Ambegaon has great hill views and retains a lot of Pune’s previous natural splendor. This makes it a good location for buyers who are looking for a break from the chaos of the central city areas.

Ambegaon is well connected to the inner city by road. It has the advantage of proximity to the Mumbai-Bangalore Bypass and educational institutions such as Poddar school, Bharti Vidyapeeth College and NBN Sinhgad Technical Institute as well as various hospitals in the vicinity.

It is also close to the new MIDC in Shirval, making it an ideal residential location for employees from this major workplace hub.

Appreciation at Ambegaon has been rather significant at 20-25% over the last two years. With the rapid development of Sinhagadh Road and also because it has now been included in the municipal limits, Ambegaon is going to witness a lot of growth in investment potential in the next few years.

As one of Pune’s most visionary real estate development concerns, Amit Enterprises Housing Ltd. has launched two major projects at Ambegaon – the luxury project Bloomfield and Astonia Royale is the affordable category.

Amit Enterprises Bloomfield Unicorn

Pune’s real estate market responds very well to diversified luxury projects that offer buyers multiple options of bungalows, villas and flats. Ambegaon has proved to be a perfect setting for such projects, because the location’s natural ambience and freedom from congestion provide a feeling of exclusiveness.

Moreover, Pune’s recent Development Plan has now included Ambegaon within the municipal limits. This is an important factor from the real estate point of view, as the area will now receive even more infrastructure benefits from the Pune Municipal Corporation.

This is already beginning to reflect in the property rates at Ambegaon, which is rapidly turning into one of the most viable Pune real estate hotspots.