Pune Real Estate Ready For A Vibrant Festive Season

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

The upcoming festive season is auspicious in more ways than one. As we look at the Indian economy today, stock markets and overall sentiment have revived, and financial confidence has returned to Indian household.

The ‘can do’ spirit that traditionally embodies the Indian festive period is back in force. Of course, this has special pertinence to the real estate market as well.

Various recent reports confirm that the Pune real estate market has been doing well even while other major markets have been struggling to re-achieve buoyancy.

For Pune’s aspiring property buyers, home ownership is again high on the priority list this year, and the positive sentiment is all poised to peak in the upcoming festive season..

In Pune, the festive season is seen as more than just a few auspicious dates suitable for wealth building and property acquisition. This season is also a major fulcrum of financial planning.

It sets in only after the closure of annual accounts and clearing of income taxes, leaving families with a clear oversight of their monetary capabilities. This factor, combined with the prevailing economic sentiment, will provide the cues for either extended caution or investments decisions.

During this year’s festive season, Pune real estate is still very much a buyer’s market and aspiring home buyers hold a clear advantage. This is an opportunity to zero in on the best of the available options, negotiate the best rates and make the dream of a self-owned home a reality.

Astonia Classic small

The meaningless freebies that many developers offer to boost sales during this period should be ignored; the most relevant festive offers are those that actually ease the home buyer’s financial burden.

The most exciting – and, from the investment perspective, profitable opportunities in the Pune real estate market are currently mid-income homes in well-connected locations. These properties, mainly 1 and 2 BHK flats in hot areas like Undri, Ambegaon, Wagholi and Manjri and in projects with all the right amenities, are currently seeing the highest demand.

However, it should be noted that among the many projects that currently cater to middle class home buyers in Pune, less than 50% are by credible developers.

Home buyers who intend to make their purchase during the festive season should do their due diligence well before the usual promotional campaigns begin. By zeroing in solely on reputable developers with projects in good locations, one can build a shortlist of preferred options quickly.

Given the high incidence of faulty construction and illegally-built projects that have come to light in recent times, buyers should not compromise on safeguarding their investments this festive season.

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.

Why Buying A Home In The Monsoons Makes Great Sense

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

Rains in India push back people into their homes. The monsoons create the perfect ambiance to partake of pakodas and sip on hot coffee while watching the drizzle freshen the trees outside.

Going outside involves braving the puddles, traffic jams and getting splashed by passing vehicles. How can this be a good time to buy a new home?

But the fact is that the monsoons are the perfect season for your house hunt. The demand tends to be lower during this season as most potential homeowners are unwilling to step out and face the weather. This means that you are at an advantage for striking a good deal.

• An opportunity to bargain

Time is money, and sellers are always on a hurry to move their unclaimed real estate. Culturally, Indians find it inauspicious to invest in anything for the two weeks of the monsoons that coincides with pitru paksh. Consequently, they wait for the festival season (generally in the month of October) to invest in properties. This is why sellers offer considerable ‘monsoon discounts’ to boost their sales, and this can be a good opportunity for buyers.

It is not just real estate developers who offer to sell at lower rates, but also investors and home owners hoping to upgrade to larger homes. The rate of discount varies depending upon the location and how badly it has been affected by the rains. Discounts on regular prices in cities like Kolkata (which is among the worst-affected cities) are likely to be more than in Chennai or Delhi, and even in top cities like Mumbai, home buyers can expect a discount between 10 and 20%.

The current real estate sale trend too opens up a larger window of opportunity for buyers. The demand for properties has been low in the past three quarters, and especially during the lull period of the monsoons, sellers are eager to accommodate serious customers. In fact, property sales in 2015 are likely to continue their journey along the lower end of the graph the end of the holiday season.

• Easier loans

Apart from the discounted property rates, potential buyers are likely to encounter ‘monsoon special’ home loans by banks. Though some banks wouldn’t offer a formal discount as RBI has recently integrated some hikes, they would be likely to negotiate the charges and interest rates according to your credit scores.

Old House Ceiling Crack

• Perfect time to scout for quality!

If you have been eyeing a property from the start of the year and waiting for the monsoon discounts, this is the time to keep a watchful eye for construction quality. Sellers and developers find it easier to keep properties in good, saleable conditions during the summers. However, with the elements pouring down in the monsoon months, it could reveal constructional defects.

Buyers can encounter leakages and dampness in otherwise beautiful houses. This makes the monsoon the best season to judge their potential investment value. Further, you should also look for how good or bad mobile networks and traffic on access roads are in the selected project during the rainy season, especially if you are new to a locality.

Consequently, the monsoons give home buyers several astute reasons for investment. In the same budget, you can even look for bigger and better homes!

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.

What Is Driving Home Buyers To Undri?

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

Real estate prices in Pune’s various micro-markets witnessed a decent increase throughout 2014 and 2015. Despite a general slowdown across the country, Pune properties remained very resilient.

The growing IT/ITeS sector and accompanying infrastructure kept the demand for residential properties fairly high. In fact, the demand for property in Pune is now highlighting locations that were not even heard of ten years ago.

According to the Annual Realty Report by Commonfloor.com, more than 230 residential projects were launched in Pune across 2014, and 22% of these were in the southern region of the city, which includes Undri.

Data further indicates that most of these (almost 90%) projects were small and medium-sized residential units, aiming to create supply of ready-to-move-in homes for buyers by the end of 2015.

Investors are especially putting in their faith in localities like Undri. In fact, this location now has a very healthy trend of buyers and is no longer just a blue-collar haven – most of the current buyers for property in Undri are white-collared professionals who are either moving in to the area, looking to upgrade to larger homes or scouting around for their second home in the same location.

• Proximity To Pune’s IT and Corporate Nerve Centers

Undri is in close proximity to the IT and corporate hubs in Hadapsar, Phursungi and Magarpatta. With several professional being relocating to these hubs from across the country, Undri seems to be the closest and most viable location in terms of daily commute and raising a family.

As a result, real estate in Undri is mostly patronized by well-paid IT and corporate professionals. Further, the Pune-Sholapur Highway (NH 9) and the Mumbai Bangalore Highway (NH4) connect Undri to other IT hubs nearby.

Astonia Classic in Undri
Astonia Classic in Undri

• Affordable Property Prices

As already mentioned, most of the residential real estate projects in Undri comprise of small and medium-sized homes that are also affordably priced along or just above the baseline.

Even for people who have been serving a couple of years in their IT/ITeS careers, homes in Undri are quite affordable. Because of its affordability, Undri is also perfect for people looking to buy a second home for investment.

• Great Connectivity

Growing connectivity has been playing a huge role in the development of Undri’s real estate sector. Apart from being connected to the two most important highways of this region, Undri’s all-round accessibility is improving rapidly with various road-widening initiatives and creation of new access roads. The local roads in this area are also increasing in size and capacity with every passing quarter.

• Perfect Lifestyle Equation

Living in Pune city is becoming increasingly uncomfortable for families trying to raise kids. Pollution and noisy traffic are becoming the bane of inner-city living in cities like Mumbai and Pune. Moreover, new home buyers have to adjust in poorly-built properties or pay hefty prices for average homes in the central areas.

A location like Undri comes as a godsend for families who are fed up with the constraints of the core city and are looking for better alternatives – well-planned homes which are close to all necessities like hospitals, schools, markets, and recreational centers and yet away from the chaos.

No wonder more and more home buyers are flocking to Undri, where the lifestyle equation has not been compromised yet and the options are plentiful and affordable.

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.