Arcadia At Sahakar Nagar – Luxury Redefined In Pune’s Most Exclusive Neighbourhood

Kishor PateKishor Pate, CMD – Amit Enterprises Housing Ltd.

Pune’s rapid urbanization causes new areas to spring up as real estate destinations with every passing year. Simultaneously, the city’s population itself is becoming more and more homogenized, with traditional value systems giving way to a more modern, all-encompassing outlook.

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.

Nevertheless, the old Pune – the city which holds on to its traditional values and outlook – continues to exist. 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 prominent of these strongholds.

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

sahakar nagar pune
Sahakar Nagar, Pune

From the outside, the tranquil dignity and old-world charm of Pune’s most exclusive and desirable residential location gives no visible indication of change. Nevertheless, Sahakar Nagar as a real estate location has been seeing a constant process of reinvention.

The inherently high economic profile of this area has ensured that old residential buildings have been constantly redeveloped. This is largely because Sahakar Nagar’s elite residents themselves have a stake in preserving the ethos and viability of this locality. As a result, Sahakar Nagar has shown none of the signs of urban decay so common to most other areas where no new development is possible.

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

In fact, the past few years have seen no new residential developments at Sahakar Nagar because of the lack of land. Redevelopment and up-gradation of existing buildings is largely being undertaken by the area’s own HNI stakeholders. Against this backdrop, Amit Enterprises Housing Ltd is now developing what will literally be Sahakar Nagar’s last addition to this exclusive landscape.

Arcadia, in the final stages of completion next to AEHL’s previous project 9 Green Park, is spread over 4.3 acres of Sahakar Nagar’s most spectacularly beautiful hilltop location.

Arcadia, Sahakar Nagar, comprises of two high rise towers of ultra-luxury living spaces
Arcadia, Sahakar Nagar, comprises two high rise towers of ultra-luxury living spaces

Comprising of two high rise towers of ultra-luxury living spaces, each supported by multi-storeyed reserved parking, Arcadia will deliver 62 apartments to Pune’s most discerning home buyers in the city’s most aspired-for residential location.

Arcadia is the 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.

Should You Buy A Home In Pune This Festive Season?

Kishor PateKishor Pate, CMD – Amit Enterprises Housing Ltd.

This question is being asked by countless Puneris still living in rented properties, and by people seeking to make this beautiful city their home.

The answer is – it is certainly the right time to invest in property in the right cities, right locations, at the right price and for the right duration. Not all cities currently have real estate markets which are performing well – in other words, where residential supply is being bought up at a healthy pace.

Pune is one city where the residential property market has maintained its momentum even in these challenging times. In fact, Pune has been one of the best-performing residential real estate markets in the recent past.

Not all locations in Pune are performing equally well – many areas do not yet have enough infrastructure to pull them up. But on the whole, pricing of mid-income and even premium housing is still affordable to buyers when compared to cities like Mumbai and Bangalore.

In contrast, there is currently not a single location in the Mumbai Metropolitan Region which is performing well, both because of exorbitant pricing and severe infrastructure deficit everywhere.

It is a good time for end users to buy property, but a bad time for investors. End users have a variety of options to choose from in most locations, and are in a position to bargain with developers.

Also, they benefit from the inevitable long-term appreciation of residential real estate because they purchase property for self-use over long periods that often span several generations. This is an ideal scenario for appreciation, since real estate investment must always be done with a long-term view.

woman holding diya

Investors, on the other hand, are actually being kept at bay by most established developers as they tend to drive up prices unnaturally.

Their sole intention is to sell their properties at inflated figures as soon as the market picks up again. Investors are one of the prime reasons why residential property prices in Mumbai have spiraled out of control.

Reputed developers in Pune are not keen on having such a scenario replicated in this city. It has already seen a significant degree of investor activity, resulting in around 30% of the current residential stock being held by investors.

Apart from the unnatural effect on pricing, short-term investors now represent a high-risk category for developers. Because of the slowing of the economy, many such investors are now defaulting on their payments to developers.

The genuine customer is now once again king, and no longer at the mercy of the market. The festive season is an ideal time to buy a home if one has studied the available properties on the market carefully.

Developers look on the festive season as ‘peak time’ for sales, and are therefore very responsive to genuine buyers who are looking for a better deal.

Demand For Under-Construction Vs Ready-Possession Flats In Pune

Kishor PateKishor Pate, CMD – Amit Enterprises Housing Ltd.

Given the current market dynamics, ready-to-occupy flats are certainly desirable choice for the risk-averse, as well as for those in a hurry. However, ‘desirable’ does not necessarily equal ‘feasible’, since such flats are quite expensive in our metros.

In cities like Mumbai, Delhi and Bangalore, ready-to-occupy flats are certainly not options for everyone. On the other hand, more rational markets like Pune are seeing quite a lot of absorption of ready-to-move-in flats because the prices of even such flats are still within one’s budget.

Currently, the demand in Pune is more or less equally balanced between under-construction and ready-for-possession flats. That said, we are definitely seeing a noticeable predisposition for fully-constructed budget flats in the less expensive areas as well as for luxury homes in lifestyle housing locations such as Sahakarnagar, Koregaon Park, Viman Nagar and Aundh.

Under-construction flats are preferred by mid-income home buyers as they are more cost effective. Buyers on a tight budget tend to favour these options for the economic advantage, even if they have to stay in rented housing for the duration.

Buyers focused on under-construction flats in Pune are aware of the fact that rates increase as a project nears completion. Those who can wait for a while definitely avail of the early-mover advantage by booking under-construction projects. We must remember that Pune’s residential property market is driven primarily by the middle class, with its implied limitations in spending power.

Astonia Royale under construction

Investors are also more aligned towards under-construction properties, since the price advantage adds to the overall profit they hope to generate. Investors invariably come into the picture at an early stage of the project cycle, while end users come in at every point in time.

Investors seek to lock in the cheaper purchase price at the under-construction phase of a project, and then benefit from the price advantage of selling a ready-to-move in flat when the project is complete.

One can understand the philosophy behind this strategy if one looks at the price difference between a flight ticket booked months in advance and that of a similar ticket bought on the day of flight. There is no difference in the distance traveled or the quality of services offered – yet the previous option is more cost-effective than the latter.

The demand for ready-to-occupy properties in Pune is driven by the IT/ITES sector and some components of the manufacturing sector. Everyone is under pressure, but the salaries that many people draw in these segments mean that they can afford the luxury of a ready-to-move in flat.

Fundamentally speaking, buyers who can afford ready-for-possession flats do not fall in the category of those who are overly focused on home loan interest rates or similar market dynamics.

Middle-income buyers are not motivated by their need for greater convenience, but by their ability to pay for a home. Seen in this context, the greater demand in Pune will always be towards affordable housing options.