Monday, July 18, 2011

PUNE — POSING NEW CHALLENGE IN REAL ESTATE


With the emerging rise in residential projects in Pune, industrial presence and multinational companies’ setting up of new industrial projects in Pune especially in the vicinity of Pimpri-Chakan-Kharadi industrial belt, it is imperative now to form a regulatory body which will take into consideration the planning and optimum distribution of land to cater to these industries needs. The PCMC MIDC area spreads approximately across 3, 000 acres out of which the Chakan and Talegaon belt comprises about 11, 000 acres, which means that Chakan will need about 50, 000 acres of planned residential development.


This kind of development will happen in a periphery of around 50 sq km. However in actual practice, the pace of real time development today is deplorable. This major lacuna is, 50% of Chakan’s industrial area is already developed and occupied leaving a very limited portion for new commercial projects in Pune.Major industrial giants like Volkswagen, General Motors, Bajaj and Mercedes Benz have already started production.

Pradhikaran—promising a feasible business for home developers in Pune
The only area that looks suitable for home developers in Pune is the Pradhikaran area for absorbing the residential demand of this industrial belt; however, planning for the residential requirements of employees in these industries in Pradhikaran is abysmally insufficient. These are not issues that can be addressed by a ‘gram panchayat’ – the crying need is to form an official body such as Pimpri Chinchwad Town Planning Authority or a corporation which will be made accountable for the best builders in Pune for any future residential development. The need of the hour is to boost the residential sector in Pradhikaran, with proper road connectivity between Pradhikaran, PCMC and Chakan.

Pradhikaran has already marked a promising residential area in the canvass of real estate in Pune with its potential to accommodate umpteen numbers of 3 BHK apartments in Pune - not only for PCMC, but in terms of Pune as well. Geographically Pune is a small city which is plagued by haphazard commercial and home developers while PCMC area is a diametric opposite - it is 100% planned, with the groundwork for the planning in place since 1965.


Another catalyst in Pune’s real estate growth boosters are education and IT / ITES. In PCMC, and particularly in the Pradhikaran area, there is a plethora of factors to amplify economic and real estate market growth, including IT, automobile and many other industries. The result is that a huge magnitude of residential and utility space needs to be developed in Pradhikaran alone. However, this has been overlooked by home developers in Pune.


There is a quantum jump in real estate price in Pune as compared to three years back. However this sky rocketing price is only in certain posh areas. The average property rates in the PCMC area three years before were below Rs. 1000/sq.ft. Now, the average rate throughout the region is between 2500-3000/sq.ft. – making it’s the most lucrative area for best builders in Pune to exercise their architectural magic.


Commercial and home developers in Pune need to understand that in this area it is still possible to build residential projects and new industrial projects. This allows for maximum appreciation potential, since the demand for either of these two segments feeds the other. In another five years, the area will have reached such a high level of development that such juxtaposition will no longer be feasible. Developers still have an opportunity to take advantage of this fact and develop residential and commercial projects close to each other. While this makes excellent business sense, it will also ensure that Pradhikaran will attain a balanced real estate profile that dovetails perfectly with the PCMC master plan.


Once the International Convention Centre and the new International airport are launched, the existing rates will be doubled in no time. Until then, it is estimated that the minimum appreciation potential for Pradhikaran will remain at a steady 15-20% year-on-year.

4 comments:

  1. However, in practice, the pace of development in real time today is deplorable. Is, this gap is the major 50% of the Chakan industrial area is already developed and occupied the left part of a very limited.


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  3. Nice Post. Thanks for sharing the information. I really liked it.

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