Latest Property News on 'Pune'

Pune Witnesses Rise in Commercial as Well as Residential Real Estate

The price of real estate in the city, which was on a low for most of last year, has stabilised and in fact posted a bit of a rise in select locations, if recent research by real estate advisory firms are any indication. Importantly, commercial real estate including retail spaces which took a bigger hit in the wake of the economic slowdown, is also showing an upward trend as demonstrated by the plans of some major world bands to enter the city, the reports said. The trend is in keeping with developments witnessed nationally. The realty scene in major cities in the country has seen higher levels of activity after the early signs of an economic recovery both in India and internationally, said the quarterly report of realty research and advisory firm Cushman & Wakefield (C&W).

The report for the third quarter of the year (July-September) observed that the market was characterised by a positive sentiment and increased activity was witnessed. “The city witnessed the launch of various residential projects in the third quarter across many micro markets in both mid- and high-end segments. Capital and rental values appreciated across the city in the third quarter,” the report observed. However, values are still below their all-time highs by about 10-30 per cent in Pune, the report said. Read More »

Pune Based Vascon Plans Rs 25 Crore Residential Project in Nashik

Pune-based Vascon Engineers is planning to commence Phase 2 of ‘Vista’, its residential project, at Indiranagar in Nashik, with Rs 25 crore investment. Besides, the company has just opened its first IT Park in Nashik, with a built-up area of 3.5 lakh sq ft.

“We are planning to commence the 2nd phase of our residential project ‘Vista’ near its IT Park in Nashik. In the 2nd phase, we will build 4 buildings on 2.5 acres of land with total built-up area of 2 lakh sq ft. These four buildings will have total 120 flats in both 2BHK & 3BHK categories, with a built-up area ranging from 900 sq ft to 1400 sq ft,” said R Vasudevan, managing director, Vascon Engineers, at a press conference. Read More »

Better Infrastructure Required to Boost Pune Real estate- ASSOCHAM Pune Head

There are often comparisons made between the infrastructure of Mumbai and Pune. The popular consensus seems to be that both cities are equally challenged as far as supportive infrastructure is concerned. This is inappropriate for two reasons – one, Mumbai’s growth pattern has been very different from Pune’s. The city has evolved into the country’s financial capital, and the pressures on it are enormous and overwhelming, considering the fact that a significant part of it is an island that cannot grow horizontally to accommodate the growing real estate demands.

Pune, on the other hand, has an advantage by virtue of the fact that it has been able to add to its borders by means of surrounding villages. This has served to decreased pressure on the central city and encourages an outward growth pattern. The challenges on Pune’s infrastructure – particularly its road network - have more to do with the speed of this growth. While there are various proposals for roads and road widening, these have to be translated into real time to be effective. The pockets of infrastructural under-development are the result of both developers and the government concentrating on existing growth areas and sidelining those with high future potential. It is a known fact that no area can grow in terms of residential, commercial and retail real estate unless the necessary infrastructure is first put in place. This is quite a common phenomenon that is the result of the principle of fastest returns almost instinctually followed by both developers and the government. Bangalore, for instance, was initially not well planned for radial expansion. The approach in this city was simple – where information technology projects went, residential projects followed. IT and ITeS, as business lines, are not dependent on a city’s CBD areas and can workably exist in areas where property prices are low. Once such a project is established, residential, commercial and retail establishments follow. Since this kind of growth in no way follows a master plan, the result is haphazard pockets of growth. This naturally leads to the neglect of areas that have not been so favoured. The syndrome is also evident in the case of other industries such as manufacturing. Read More »

Pune Builders Extend Help to Conserve Water

Real estate firms in the city said on Thursday that they would not use water from Pune Municipal Corporation sources for construction purposes. A circular issued by Satish Magar, president of the confederation of real estate developers’ associations of India (Credai), Pune, said, “Our general practice is not to use the PMC water for construction. In fact, builders do not get the permission to do so. However, in case there is an odd case where such a situation exists, we have passed a resolution asking members to ensure that construction activity does not impact the city’s water supply.”

Credai has also asked its members to defer non-critical construction activity to help the citizens’ water needs, the circular said. Magar said in the circular that Credai members have decided to do their best to help the city which is facing water crisis. “Our members will not use any water from the PMC resources but use our own borewells or water from the Sewage Treatment Plants for our construction needs and even in our projects,” Magar said, adding that the members have also shown willingness to make their excess water available with the PMC for making it to areas surrounding such water sources.”

Developers focus on Service Apartment to Fight Tough Times

After being launched in cities like Delhi, Bangalore and Pune, service apartments will soon be a reality in Tier II and III cities. Considering the growing number of corporate honchos visiting the tri-city, Ludhiana and Amritsar, real estate developers will soon introduce service apartments in these cities. Another reason that has evoked developers’ interest in service apartments is the slump in the real estate industry. The negligible sale of apartments in the tri-city has forced them to convert these into service apartments.

Service apartments, which are fully-furnished with all facilities, are an alternative to five-star hotels. Unlike a normal apartment, a service apartment is given only on lease or rent and is a good option for travelling professionals and nuclear families. Soon, Omaxe will launch a few limited service apartments in Omaxe Royal Residency on Pakhowal Road, Ludhiana. These apartments, with an area of 650 square feet each, will be launched in July. “Ludhiana has marked its presence in India as a commercial city. It has many industries, which result in a number of corporate heads visiting this city. These apartments will offer them a nice and cheaper accommodation compared to hotels,” Avneet Soni, director of Omaxe Limited, said. Read More »

Real Estate Investors Eyeing Change in GOVT

As the country awaits the result of the polls, everyone would be interested in knowing which party will come to power. An online real estate portal had conducted a survey to gauge beliefs of an average property seeker about the elections and their expectations from the forthcoming government. While seeking people’s choice for coalition government, city-wise in eight cities of the country, it was found that Ahmedabad topped with 51% respondents for being more hopeful for BJP led-coalition that would boost the realty sector. Bangalore and Pune followed Ahmedabad with 42% and 37% respondents who voted for BJP respectively. On views of buying/investing in property before the formation of the new government, the respondents had mixed reactions on it. However, 51% of the survey takers were willing to hold back their realty purchases until the future government comes in power. Of all, Ahmedabad ranked third with 52%, followed by Hyderabad and Mumbai with 57% and 54% respectively for holding property buying while 40% are ready for immediate investment and 9% of the total respondents are undecided.

The national online survey ‘My Vote. My Makaan’, conducted by makaan.com, covered leading eight metros and tier II cities of India including Ahmedabad and was conducted on the portal between 22 to 30 April 2009 and saw participation from over 3,563 property seekers nationally. Agreeing on the same, National head-sales and operation of IndiaProperty.com, Shrikanth T, an online realty portal said “We also have been experiencing that people are holding to buy property. In many cases some of the property owners are avoiding to sell their property.” This could be because they would be expecting some benefits from the government in terms of tax relations etc, he added. Referring to the survey about the property prices going up or down with the formation of any party, BJP or Congress, Shrikanth said that who so every government comes must intend to fulfill a common man’s need, ‘roti kapda aur makaan’. When checked on the income bases the lower income group prefers the Congress-led coalition, the middle and upper middle income group favors for BJP. Buyers from lower & mid level income groups flood the Indian property market today.

20% Decline in Office Rentals

Office space rentals in India are expected to fall up to 20% in the next three quarters, with key cities like Delhi and Mumbai slated to witness a sharp decline of 50%. According to the global real estate consultant Jones Lang LaSalle (JLL), the decline in property prices in India is expected to continue through the year with office rentals expected to fall by 15-20%, as the slowdown-hit realty sector is likely to see a recovery only in the second half of 2010.

“The largest decline in rentals is expected in Delhi and Mumbai, expected to halve its peak,” JLL said in a report on global market perspective. The consultant further said the office rentals in Chennai, Kolkata, Hyderabad and Pune are expected to decline between 30% and 40% from their peak during the next three quarters, while the same in Bangalore will fall 15-20% from its peak. On the current economic scenario, the report said the recent gains in the equity market propelled optimism in the economy and if it continues, a recovery is expected by early 2010. “Although the effects of this upturn would start showing signs in the real estate sector, the gains would definitely come in second half of 2010, when fresh demand again builds up in the market and the latent demand suppressed on fears of a downslide comes back,” it added.

New Industrial Park Policy hits developers hard

Real estate developers across the country are planning to challenge the government’s move to dilute portions of a scheme launched in 2002 that granted 100% tax exemption for 10 years to those who built industrial parks.

Firms in Chennai, Pune, Mumbai and other cities are planning to move the court in their respective cities saying that the government has changed rules midstream well after they have signed deals with prospective clients. Read More »

Residential Sector likely to witness oversupply

The residential sector, which has already seen a 15-20% price correction in markets across the country this year, is going to witness a significant residential supply over the next 12 to 18 months in two key markets Mumbai and Gurgaon (NCR).

The direct implication of the over supply will be that the rentals will come down drastically which could lead to a further price correction over a prolonged period of time (one to two years). Read More »

City Developer’s Reluctance to Drop Prices Provides Business Opportunity to Hometown Developers

The reluctance of several real estate developers in Pune and Mumbai region to scale down property rates in keeping with the market gloom has turned into a business opportunity for players from other states. Sensing a good business opportunity, they are entering the Mumbai-Pune ring. They are wooing buyers, originally from their states, back home with the promise of an affordable home. This trend is not new, but this is perhaps the first time builders are looking at weaning away potential buyers from big cities such as Mumbai, Delhi and even Dubai. Real estate players from states like Karnataka, Andhra Pradesh and Kerala are showcasing their properties in the city at a corporate level, giving customers the option to own a house in their homeland at much lower rates.

The latest on the list is Oxoniya Builders and Developers Pvt Limited from Kerala which conducted a two-day property show in Pune and Navi Mumbai on Saturday and Sunday. Customers were urged to go for homes in luxury apartments on the riverfront at Aluva or Kakanad in Kerala, where the Dubai Internet City model Infopark is set to come up. “We are getting a tremendous response from the region. People here are looking forward to buying property in their homeland. In these times of economic slowdown, people expect property rates to come down and since it is not happening in the region, they may be opting for properties within their budget in their home states,” said Anith John of Oxoniya. Read More »