Amit Enterprises Housing Ltd Launches Colori Phase 2

High-Quality Budget Homes At Undri, Pune

Pune, February 19, 2015: Amit Enterprises Housing Ltd (AEHL) which ranks among Pune’s most reputed and established real estate developers today launched the second phase of Colori, AEHL’s highly successful residential project in Undri, Pune. The launch took place at the project site in the presence of Pune’s leading media and real estate industry dignitaries.

Colori Phase 2 consists of 278 apartments priced specifically for Pune’s budget homes buyer segment.

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Colori Phase 1, a mid-range housing project comprising of six buildings offering 2 and 3 BHK apartments, was launched in October 2010 and is almost completely sold out. Flats in Colori Phase 1 were snapped by buyers from Pune’s thriving IT/ITeS and manufacturing services industries.

A sizeable portion of Colori‘s first phase units was also bought up by investors with an eye on Undri’s very promising future. AEHL expects an even more enthusiastic response for the affordably priced Colori Phase 2.

Kishor Pate, CMD – Amit Enterprises Housing Ltd. says, “Undri has emerged as one of the sought-after residential destinations in Pune.

The area has developed rapidly and has become the logical alternative after the almost saturated NIBM Road. The revival of demand from the city’s manufacturing and IT sectors is one the main reasons why AEHL is now concentrating on this area.”

Undri offers a number of location advantages, including proximity to NIBM Road, Wanowrie and Pune Camp. It is well connected to various key localities in Pune via local and interstate highways and expressways. It also has dense green cover protected by Government regulations.

Colori Phase 2 has been specifically envisioned to provide cost-effective budget housing to employees from the many IT/ITeS and manufacturing firms in and around Undri,” says Kishor Pate. In the launch phase, homes at Colori Phase 2 will be attractively priced:

About Amit Enterprises Housing Ltd:

Amit Enterprises Housing Ltd (AEHL) has over 40 completed projects to its credit, and is reputed for both luxury and budget homes in Pune’s most strategic locations. Ongoing projects in Pune include Astonia Classic and Colori in Undri, Bloomfield and Astonia Royale in Ambegaon and Amit’s Eka in Nasik. AEHL has attained a current business volume of INR 250 Crore and is well on its way to raising this bar to an annualized business growth of INR 1000 Crore in the next three years.

www.amitenterprises.com

What The Budget Should Do For Home Buyers

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

Real estate stakeholders in every Indian city are looking forward to the upcoming financial budget 2015 to see whether it will provide any relief to the sector.

Developers have their own expectations, because positive announcements for real estate buyers made during the budget will help increase the market sentiment, and therefore sales. The general hope is that the budget will provide cheer to intending home buyers who have been deterred for various reasons.

Make Home Loans Affordable

The Union Budget 2015-16 should make the rate of interest specific to home loans more reasonable. Currently, banks are offering interest rates ranging between 10.15 to 10.40%, and this is far too high.

Paying so much interest has serious implications on the family budgets of most middle-class wage earners. It is not surprising that many of them currently shy away from home loans.

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

Additionally, the home loan interest amount exemption under Income Tax benefit should be increased from the existing limit of 1.5 lakh to 3 lakh. Further, this exemption should be made applicable for more than single property purchases. This is not an unreasonable expectation.

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

Eliminate Multiple Taxation On Property Purchase

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

Goods and Service Tax (GST) should be introduced in the place of these taxes. Also, the real estate industry expects the Budget to finally make the Real Estate Regulatory bill a reality this year, so that the industry has the benefit of an apex body via which all concerns can be addressed transparently and efficiently.

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Reduce Cost Of Property Registration

Another expectation from the Union Budget is a reduction in the cost of property registration. The recent hike in ready reckoner rates in Maharashtra has been a sentiment setback for the real estate sector. Stamp duty and registration costs are as high as 6% in most cases, and this needs to be reduced by a few base points to aid consumers.

Alternatively, a slab-based approach should be introduced. Stamp duty falls under state government purview, but the Center can nevertheless issue a directive to reduce stamp duty costs.

Oversupply Of Homes In Pune? Look Again

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

Oversupply seems to have become a fashionable word with real estate market watchers these days. Unfortunately, like anything that has become fashionable, it is being used far too much, and often without real understanding of the market.

Definition Of Oversupply

In real estate, an oversupply situation is one where an overly large surplus of residential or commercial properties has been created. The surplus happens when there are not enough buyers for these products on the market.

An oversupply situation can happen for various reasons. Usually, the term is used when real estate developers have been launching too many projects, thereby putting more housing or office units on the market than buyers are willing to pick up.

An oversupply is also created when the pricing for units is higher than consumers are willing to pay, or when buyers and investors have reason to believe that prices are going to come down. In other words, they are waiting for a correction. When such a perception exists on the market, even reasonably-priced homes and offices may not sell well.

Oversupply In Pune?

First of all, let us examine what a normal real estate market looks like. It is certainly not one where supply and demand are perfectly matched. In a healthy market, there will always be a good supply of homes, because such a supply allows buyers the freedom to choose.

Also, a healthy supply ensures that developers have to price their offerings competitively. Without enough supply on the market, there would be a monopolistic situation wherein developers as well as investors can charge whatever they wish.

Some recent reports have indicated that Pune’s real estate market is witnessing an oversupply situation. Pune is, in fact, a market that displays a standard rate of supply and absorption which is normal and required in a growing city which is constantly adding new areas for development into its borders.

Sahakar Nagar, Pune
Sahakar Nagar, Pune

A good supply pipeline is, in fact, one of the reasons why Pune’s market has remained more competitive and rational that Mumbai. It has also been an integral factor in keeping property prices in this city rational.

It is not clear why any report should attempt to attribute negative connotations to this. Demand for residential properties is very healthy in Pune, and has been picking up even more pace after the last general elections.

In fact, Pune’s property market has further distinguished itself by the fact that, unlike in other cities like Mumbai, Delhi and Bangalore, even luxury homes continue to sell well.

Premium housing in Pune is amply supported by increasing wealth creation, escalating aspirations among the city’s HNIs and the growing desire of existing home owners to upgrade to a better lifestyle.

Thanks to rational pricing and the good quality of homes being turned out by Pune’s reputed developers, most of the new residential supply coming on the Pune real estate market will be absorbed within the next two years. However, this is not to say that there are absolutely no problems in sight for Pune’s real estate market.

Red Signals On The Outskirts

If there is one reason for concern, it is over the opportunistic supply of housing that is hitting the market on some of the city’s peripheral areas.

In these locations, many fly-by-night developers have been actively churning out sub-standard projects which do not comply with standard construction norms and often lack all the required legal approvals.

Because of the negative media that these inferior offerings have been attracting, they are unlikely to sell at the rate which their developers have been hoping for.