Pune the Fastest Growing IT Hub

With fresh impetus provided by the union Budget, realty planner in Pune is responding to the increased demand for affordable housing from the mid-segment resident buyers. The city’s real estate landscape which is currently dominated by integrated townships is accepted to see the emergence of a number of projects in the affordable residency segment.

Pune’s real estate market has fared well as compared to metros such as Mumbai and Delhi NCR in the recent years. While Mumbai’s high real estate prices keep buyers at bay. Pune scores over Mumbai in this regard. The city offers a wide range of options, priced between Rs 30 and Rs 70Lakh, for mid-segment home buyer.

Owing to the lesser time required exhaust unsold inventory, Pune was among the better - performing markets in the country in 2015, states a report by Knight Frank India. Witnessing a steady growth of capital price movement, the city’s realty market is believed to be less speculative and more reliable when it comes to return-on-investment (ROI). This is largely due to growth of infrastructure, job opportunities, the standard of living and residence demand.

With people employed in manufacturing, information technology and services sector, Pune has all that a city needs for its economic growth. The city is among the fastest growing IT hubs in country. Due to the increasing presence of multinational companies, Pune is believed to have overtaken. In terms of demand for residential properties.Bangalore the city offers a wide choice of resident options; it is the affordable resident category that has seen the maximum demand in recent years. However with steadily rising property prices in many micro markets, the supply of budget residence is not in tune with the rising demand.

The Union Budget’s proposal of a 100% deduction to entitle on profits made in affordable resident projects and exemption of service tax for houses less than 60 sq. m has renewed the interest of realty planners in Pune, many of whom are now venturing in to this segment of the residence. Interestingly with a 30 sq. (323sq.ft) home in metros and up to 60 sq. m (646 sq.ft.) in non-metros cities, the budget has related affordability to the size and not the price of the unit.

INCENTIVES REQUIRED
Meanwhile, (CREDAI’s) Confederation of Real Estate Developers Association of India, Pune Chapter has sought clarification on a few aspects of the government’s proposal. In order to further magnify the interest of planners, the body will now push him government for removal of minimum alternate of three years, said ShantilalKataria the President, CREDAI Pune Metro.

Another factor that can push the affordable resident market in the city can be exemption of stamp duty, registration and value added tax (VAT) for the home buyer. This can help in the right pricing of the units and make them more affordable. Amenities that are offered in some of the existing projects in this segment are very basic. As this has also been an area of concern, improvement in this regard can lift the buyer sentiment.

With property prices in Pune’s city - centric locations steadily rising affordable. Amenities that are offered in some of the existing projects in this segment are very basic. As this has also been an area of concern, improvement in this regard can lift the buyer sentiment.

With property price in Pune’s city - centric locations steadily rising, affordable housing is marking its presence in peripheral areas. While areas in the city Centre have saturated, localities in the fringes such as Undri, Ambegaon, Talegoan, Chakan and Moshi have emerged as the new centers of affordable residency.

Availability of land at relatively lower prices is the key factor that is enabling realtors to develop affordable projects in the city’s outskirts, however, being far from IT business hubs, and demand in peripheral areas remainsubdued. The lack of supporting infrastructure in some areas is also encouraging for buyers such as Undri, Ambegoan, Talegoan, Chakan and Moshi have emerged as the new centers affordable residency.

Availability of land at relatively lower prices is the key factor that is enabling realtors to plan affordable projects in the city outskirts. However, being far from IT and business hubs, demand in peripheral areas remains subdued. The lack of supporting infrastructure in some areas is also not encouraging for buyers and investors. Newly developed fringes such as Yavat, Pirangut, Susgoan, Lavale and Moshi suffer from poor infrastructures such as roads and other transport.

Among other factor that can push affordable resident in the city is a single-window clearance system for housing projects. Planners have long been advocating the need for a single-clearance. Such system, if implemented can go a long way in controlling housing prices. Faster approvals can help complete projects in time and avoid unnecessary delays.