Festive Season Boosts Demand For Affordable Homes In Pune

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

In a price-sensitive market like Pune, affordable housing is always in demand. The city’s working and earning middle class is constantly on the lookout for good homes available within their budget.

This festive season, the Pune market is showing signs of increased activity as always, but the onus is on homes which fit people’s budgets. Buyers are looking for decent-sized homes within the city limits, with good amenities, and within a budget range of Rs. 29-50 lakh.

This is the category of homes which will draw the highest demand this festive season. Developers offering homes in this budget range in an all-inclusive package will be able to tap into this demand.

Buyers should do their homework and look for good options in new constructions by reputed developers. Focusing only on established builders will allow them to book homes in under-construction projects with confidence, as timely completion, delivery of all promised features and adherence to quality construction norms are assured in such cases.

The festive season is an ideal time to take advantage of lucrative offers from such developers, such as all-inclusive price packages. However, buyers should not be swayed by offers of meaningless freebies and focus only on the actual value being given.

Buying an affordable home is all about getting what one needs within one’s budget, not about bringing home surplus white goods or paid vacations.

Astonia Classic small
Amit’s Astonia Classic in Undri

Information technology is still Pune’s biggest demand driver for residential real estate. The most exciting – and, from the investment perspective, profitable opportunities in the Pune real estate market are currently 1 and 2 BHK flats in well-connected locations.

The areas which are drawing the highest number of enquiries this festive season are Undri, Ambegaon, Wagholi and also Mundhwa and Manjri, because these locations have the advantage of good connectivity to Pune’s IT corridors, and projects there fall within the right budget bracket.

Tips for home buyers:

• Do not focus merely on price. While buying an affordable home is definitely about staying within one’s budget, there are always superior projects with better amenities and in better locations available within any budget range.

• Do not be tempted by the cheaper options being offered by unknown developers on the outskirts. Many buyers fall into problems today by investing in illegally constructed projects which are sold cheap but may cost the buyer dearly later on.

• Patronize only reputed developers. Doing so allows you to book into under-construction projects without fear, and benefit from the more attractive prices available in under-construction projects.

• While choosing your project, do not neglect to factor in potential for appreciation – your home is your most important investment. The location should have strong infrastructure fundamentals and demand dynamics. Spend some time and effort to study how prices have been growing in the area.

• Remember that this is currently a buyer’s market, and that there is scope for bargaining. Rather than settle for inferior options by unknown builders, look for good options with reputed builders and discuss with them how the best price can be arrived at.

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 homes in Pune, like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

Affordable Housing: Not Just About The Economically Weaker Sections

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

Affordable housing, though a widely-used term in India, actually means different things to different sets of demographics. The definition of ‘affordable’ is heavily influenced by the socio-economic variables that drive a certain city or location.

For the Indian market, affordable housing would usually refer to residences which are designed for the economically weaker section (EWS) of society, so that they can enjoy the comfort and security of self-owned homes as much as the middle class.

There is no doubt that economically weaker section in India did not get the required impetus in earlier years. However, with the current government coming into power, it has been made clear that a significant change is being aimed at.

The EWS is also India’s thickest part of the income pyramid and being the base of our economy, their requirements and living standards need to be taken seriously. We are now seeing visible progress on this front.

The BJP government has undertaken several initiatives to boost re-development of older buildings while supporting high-grade infrastructure for the peri-urban locations. The objective is that the working population should not have to move out of their city to go to work every day.

Commute time and accessibility has been a key factor behind the development of low cost housing in the land parcels located on the periphery of cities.

But affordable housing also has a larger ‘local’ meaning – namely, housing which is affordable to the largest segment of potential home buyers in a city.

The target buyer base for affordable housing in a city can be that section of the local population which, though not economically challenged, is nevertheless sensitive to high budget overruns.

Such buyers have sufficient budgets not to have to live on the extreme outskirts, but are still challenged to find homes that are affordable to them.

Colori Phase 2 Undri
Amit Enterprises’ Colori Phase 2 at Undri

 

In other words, if there is a deficiency of new properties in city locations for buyers whose budgets do not exceed Rs. 30-40 lakh, a city is suffering from an affordable housing deficit even if it has a massive supply of homes priced within Rs. 20 lakh on the extreme outskirts.

Buyers who can afford to spend more than this will not consider moving their families to the peripheries, yet the available options in better locations exceed their budgets.

If a large part of a city’s working and earning middle class cannot afford to buy good homes, there is a dearth of affordable housing.

AEHL’s Colori, offering fully-loaded 1 BHK flats for an all-inclusive price of Rs. 28.9 lakh among its options in Pune’s new real estate hotspot Undri, is a project which was conceived to meet this demand.

However, more developers must step in to provide such budget housing where it is needed the most in India’s larger cities.

There is sufficient business rationale for affordable housing projects, which have consistently seen high rates of absorption. Affordable housing is indeed a positive solution not only for the socio-economic growth but the real estate business too.

The demand is exceptionally high, and developers who have stepped into this realm of real estate development will be able to sell their projects for years to come.

While a lot of work and policy-driven growth is still needed in the affordable housing segment, it is nevertheless proving to be the most sustainable business model for the industry.

Developers of such residential projects will never face the impacts of inflation or other economic setbacks. The demand for affordable housing has been constantly growing irrespective of the economic conditions.

Another direct implication of the growing demand of affordable housing is the rising interest from real estate investors. More and more investors are now putting in their money into budget homes, attracted by the healthy demand.

These factors clearly indicate that affordable housing as a business vertical has stood the test of time, even as costlier luxury homes segment are facing a hard time in the current scenario.

Builders who have tasted success by proving much-needed affordable housing are therefore encouraged to cater even more to this segment. In short, affordable housing is both an excellent way of leveraging brand value, as well as a means of ensuring immunity to market slowdowns.

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. Most recently, AEHL has launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

Welcoming The Era Of Smart Cities

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

Today, there is little doubt that the Indian economy has the potential to become the most successful one globally. However, its overall development has historically been shanghaied by lack of political will and the very slow growth of our infrastructure.

With the arrival of the Modi Government, we can at last look forward to a more proactive approach to infrastructure development, which will definitely help in bringing on a new era of progress and change in India.

Among the most promising initiatives of the NaMo Government is the Smart Cities program. Recently, Pune has been added to the list of Smart Cities to receive the incentives under this plan, which effectively means that it will be provided central assistance to the tune of Rs 100 crore per year for the specific purpose of deploying infrastructure projects which will have definite and distinct larger public benefit.

Pune, the city as we know it today, is now on the verge of complete transformation. We are looking at a city that will literally be reinvented.

Over time, Pune will see the arrival of assured electricity and water supply for every citizen, high-grade sanitation, pedestrian-friendly footpaths, non-motorised transport zones reserved exclusively for walking and cycling, vastly improved traffic management including smart parking solutions, more open spaces and encroachment-free public areas, and many other benefits.

But infrastructure is only one aspect. Among the several advantages of smart cities is the generation of employment – the single-most important element that can support the overall growth of the Indian economy.

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Also, smart cities bring in massive amount of investment, apart from creating healthy and comfortable living conditions for millions of people. And – very importantly – smart cities will have a tremendous boosting power for the the Indian real estate sector.

The Introduction Of Smart Cities In India

The initiative for smart cities began when Mr. Arun Jaitley, the finance minister, allocated Rs. 7060 crore in the last Union Budget to create of transform 100 cities into smart cities. The potential investments into these smart cities would cause India to reach heights that no other country in the world has touched so far.

Actually, a budget of Rs. 70 crore for every city falls quite short of what it would take to build an actual smart city – we are not just talking about mere townships. Mr. Jaitley has clarified that this budget is just the seed money require to trigger the work; the actual corpus of funds will have to be generated in collaboration with the private sector.

This means participation by corporate and individual investors, who will supply the bulk of funding required to build smart cities from the ground up, or to transform existing cities into smart cities.

What Are Smart Cities All About?

Smart cities, by definition, are all about:

• Smart governance
• Smart buildings
• Smart energy
• Smart technology
• Smart infrastructure
• Smart mobility
• Smart healthcare
• Smart citizens

Every one of these parameters would require the private sector to offer technical expertise and manpower. It is estimated that by 2030, in excess of 600 million people will migrate to India’s urban landscape and smart cities would be the only solution to reduce the chaos. Further, going smart will support cleaner living standards, health and productivity without burdening our already depleting natural resources.

The success of smart cities will ultimately depend on the people running them. They will be responsible for the utilities like power, water, gas, etc. Smart cities will also provide an adequate number of hospitals, schools, workplace hubs, hotels and entertainment complexes. Overall, these cities should promote a completely optimized urban experience.

Smart cities will invariably change the very face of the Indian economy. Globally, there are just 26 smart cities and the Indian Government is now aiming to add four times this number. Consequently, there is an express need to boost important sectors like information technology, manufacturing and development.

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.