Affordable Housing Supply in Pune

By Mr. Anil Pharande, VP, Credai Pune Metro

Today, about 30% of India's population lives & works in urban areas. If we zoom in on Maharashtra, it emerges that close to 60% of the overall population lives in urban locations.

Obviously, the affordable (low cost) housing quotient has gone badly wrong in Pune's prosperous neighbouring city. However, the problem is larger than just one city, which continues to get negative press only because of its exorbitantly high property rates and enormous annual inward migration.

 Mr. Anil Pharande, VP, Credai Pune Metro

Urban Population 28.5 crore..!

Despite everything being said on the matter, the shortage of affordable housing in India is getting worse instead of better.

India's urban population of 28.5 crore has multiplied itself by 5 over the last half century. It is projected that it will continue to increase at this fast pace, and that 50%of all Indians will be living in urban areas by the end of the next 3 decades.

So, if the shortage for housing for the lower income segment stands at 2.5 crore today & there is no increase in the pace of supply of affordable housing launches, what will this figure look like in 30 years?

Let us look at the situation from a real estate market point of view.

Rs. 10,00,000 crore..!

There is, in fact, a gigantic market for affordable housing in India. At present, it is valued at anything between Rs. 5,00,000 - Rs. 10,00,000 crore. There are next to no government incentives for projects with flats in the Rs. 30 to Rs. 35 lakh bracket.

While the only answers to this question in Mumbai seem to lie in small projects on the far outskirts of the city, Pune presents a far more encouraging picture.

Developers of township properties in Pune have now begun addressing this market with property development model called integrated townships.

This model is based on maximum value for money to buyers, based on high-grade common infrastructure and shared facilities in more cost-effective, yet progressive areas like the Pimpri Chinchwad Municipal Corporation.

About the author..!

Mr, Anil Pharande is Vice-president, Credai Pune Metro

CREDAI - Pune (formerly PBAP):

Nucleus Jeejeebhoy Tower, 3rd floor,

Office no. T-1,T-2,T-3, Church Road, Opp. Commissioner Office, Camp

Pune - 411 001

Tel. no.: 020 - 2605 2654

Tel. Fax. no. 020 - 26052656

Email Ids: pbap@vsnl.net, pbap123@gmail.com, credaipmr@gmail.com

Website: www.credaipune.org

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