What Lies Ahead For The Pune Property Market

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

Pune’s real estate market is the stuff of legend, and justifiably so. All the five main verticals of the property sector – residential, commercial office space, retail and hospitality – are performing optimally in Pune.

This is by all standards an exceptional real estate market. Moreover, Pune is always growing and adding to its geographical spread, making it by far the largest and most vibrant real estate market in Maharashtra and beyond.

Therefore, it comes as no surprise that investors from Mumbai, dissuaded by the high property rates and slow market conditions in the financial capital, are extremely active in Pune.

Apart from these, there is a constant flow of investments coming in from other Maharashtrian cities like Nanded, Nasik, Sangli, Kolhapur, Nagpur, Jalgaon and Amravati. As a result, the Pune property market is extremely resistant to stagnation.

Know what drives demand

The huge degree of job creation the city’s manufacturing, automobile and Infotech and services sectors is causing inward migration from almost all parts of India and very rapid absorption of commercial office spaces.

This, in turn, is constantly ramping up residential property demand as well. Additionally, thanks to its many educational institutions, Pune boasts of constantly replenishing talent pool which fuels the growth of all the sectors active in the city.

Because of the multidimensional growth drivers that the city enjoys, the Pune residential property market is quite resistant to the severe demand fluctuations being seen in a number of other cities.

However, successful investment into the Pune residential real estate sector still calls for knowledge about what works, and what doesn’t.

Pune_India

Know where to invest

Like in every other city, Pune’s residential property sector sees the most rapid impetus in pockets or locations that are still developing. It is primarily in these emerging locations that we find the most real estate activity, both its terms of development and demand from buyers.

Areas like Undri, Ambegaon, Keshavnagar and Bhugaon have already established themselves as Pune’s fastest-growing new suburbs. The growth of such locations also serves the important purpose of decreasing demand and development pressure in the central regions. However, even in these areas, there is danger lurking for uninformed property investors.

In many of the emerging residential property destinations, we have seen a huge load of housing projects where construction has either been stalled or delayed far beyond the initially committed completion timelines.

Investors and end- users who bought into such projects at the pre-launch phase to take advantage of attractively low rates have literally become stuck along with the projects.

Know your developer

In Pune, the difference between beneficial and hazardous housing investment lies primarily in the reputation and credibility of the developer. While credibility is a much-abused qualification that almost every developer lays claim to, it is actually quite simple to verify.

One merely needs to examine the builder’s track record of successfully completed housing projects. ‘Successful completion’ does not mean ‘eventual completion’, but completion within 1-1.5 years of the delivery timelines promised to buyers.

RERA Compliance – the new Gold Standard

With the Real Estate Regulatory Act (RERA) slated to finally become a nation- wide reality by mid-2017, Pune’s residential real estate market is going to become more vibrant and lucrative for property investment than ever before.

Thanks to this key reform in the real estate sector, the city is set to shed a lot of its ‘bloat’ – or burden of small-time, inexperienced builders out to make a quick buck with small, shoddily designed and executed projects which are also often of dubious legal status.

Such players will simply not be able to sustain operations post-RERA, and will vanish from the market.

What will remain are builders of good repute, market standing and track record – credible players who are able to abide by the strictures that RERA lays down to protect the interests of buyers and investors.

While this landmark is understandably a source of fear and trepidation for fly-by-night builders, it heralds the even more powerful emergence of strong, credible developers.

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 projects like Montecito in Sahakar Nagar and other 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 Has Led To Pune’s Affordable Housing Crunch?

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

No discussion about the hottest real estate markets in India today is complete without a generous reference to Pune. In fact, Pune is one of the most-talked-about and desirable places in India to live and work in today.

People are attracted to this city because of its vibrant job market, the much more clement climate and environment when compared to the neighboring financial capital Mumbai, and – very importantly – the superior quality and spread of options in housing.

However, there are some important factors that property buyers who are not familiar with Pune should be aware of so that they can make the right choice while buying their homes here. Pune is doubtlessly a marvelous place to live in, but this has over the recent years actually become a problem.

The areas closest to Pune’s business district and Information Technology hubs have gained attention for being the most desirable places to buy or rent a home in. However, as the popularity of these areas increased, so did the cost of living.

Because these areas are seen as high profile and naturally attract people from the higher income brackets, most of the housing supply there is now in the premium segment. The property rates of such housing also drive those of non-premium housing upward.

It is not only real estate prices which are affected in these locations, but the overall cost of living. The high property prices in these areas mean that shopping outlets, entertainment centers, restaurants and healthcare facilities all have to pay much higher rents.

Astonia Classic in Undri
Astonia Classic in Undri

The higher costs are directly passed on to the customers in these catchments. Moreover, because of the overall premium ethos of these locations, they tend to attract retail, hospitals and F&B outlets which cater primarily to high-income customers.

True, Pune is one of the most vibrant cities because of its high lifestyle quotient, spunky neighborhoods and Information Technology hubs. Unfortunately, the very residents who made the city this upscale, happening place where everyone wants to live and work are now challenged by the increased property prices and cost of living. In Pune, affordable housing options are becoming fewer and far between.

As a result of the rapidly increasing capital values, housing rents in the most popular areas have also been rising inexorably, and this trend shows no signs of stopping anytime soon. Right-priced housing is decreasing because of the swanky new apartment buildings in the more happening locations.

Pune’s inner locations and those closest to its IT hubs now have no affordable housing left for people to buy, even as the influx of new renters in these limited areas drives up demand and prices for a limited amount of units available for rent.

The only solutions would appear to lie in Pune’s far-flung outskirts, where land is still cheap and developers can keep their prices low. However, these areas are also very far from most of the city’s workplace hubs, and also lack the kind of support infrastructure that makes decent living possible. Fortunately, Pune still has a small handful of locations which are neither too remote not too costly for budget home buyers.

Among these, Undri in the Southeast of the city and Ambegaon in the Southwest are two of the best-connected areas which are still receiving a decent supply of affordable housing and also rapid infrastructure deployment. Keshavnagar and Manjri in the East are also still quite affordable, though relatively less enabled in terms of infrastructure.

These locations offer home buyers the benefits of rational housing prices as well as very good connectivity in terms of road network, public transport and proximity to good schools, shopping, entertainment and affordable healthcare.

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.

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

Amit Enterprises Housing Launches Astonia Classic At Undri

For immediate release

Genuinely Affordable Homes In Hot New Investment Destination

Pune, October 9 2014: Amit Enterprises Housing Ltd (AEHL), one of Pune’s most respected and established real estate developers, has announced the launch of its mid-range homes project Astonia Classic at Undri. The project consists of exclusively 2 BHK flats, which are being offered at a concessional price of Rs. 50-52 lakh during the inaugural phase.

Kishor Pate, CMD – Amit Enterprises Housing Ltd. states, “Astonia Classic once again translates AEHL’s long-standing commitment towards affordability without compromise on high quality construction and specifications into brick and mortar. This project will consist of 1200 flats with 905 square feet of saleable area. The first 100 booked flats at Astonia Classic will be sold at a reduced inaugural price.”

Astonia classic 3

Astonia Classic soft-launched earlier this year to an overwhelming response from Pune’s budget homes buyers and investors. More than 200 units were sold within a very short span at this stage itself. Construction of the project is underway at full tilt, and buyers will get possession of their flats within 24 months.

Undri, located in the south-east corridor of Pune, has become a new focal point for affordable housing projects and is seeing massive demand from property buyers because of the advantages that this location offers. It provides convenient access to the information technology hubs of Magarpatta and SP Infocity in Phursungi, and Pune’s traditional business and inter-city transport hubs of Swargate and Shivajinagar are easily reached from there.

astonia classic_night

Major healthcare institutes such as Apollo Clinic and Ruby Hall Clinic in Wanowrie and Inamdar Hospital in Fatima Nagar ensure access to instant, high-quality medical services. Additionally, Undri is close to the MG Road, Pune’s most popular high street shopping area.

“Property buyers in Pune are seeking homes that can meet all of their families’ requirements, offer convenient access to their workplaces and are also priced reasonably,” says Rohan Pate, Director, Amit Enterprises Housing Ltd. “Undri is the perfect location for such home seekers because – not only because of its excellent connectivity, but also because of the well-developed social infrastructure of in neighbouring Salunke Vihar, Wanowrie and NIBM. At the same time, Undri is free of traffic congestion and offers a bracing green environment.”

Rohan Pate also confirms that Sachin Tendulkar, AEHL’s iconic brand ambassador, is still very much on board and that the firm is discussing long-term plans with the legendary cricketer.

Sachin Tendulkar

AEHL is currently engaged in a major forward thrust in its development activities. Apart from its ongoing projects in Baner and Ambegaon, the firm has an ultra-luxury project in Pune’s elite Sahakarnagar area, Amit’s Eka in Nasik and another luxury project in Mumbai on the anvil.

For bookings and inquiries, call 0922998899 now.

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.