By Mr. Sanjay Bajaj, JLL India
The luxury homes segment has been burgeoning on the Pune’s real estate
market, with many large players entering with projects. However, we are now
witnessing a slight shift in the development trend. Many new players on Pune’s
real estate market are now venturing into affordable housing segment. This is
obviously where the greatest demand lies.
Affordable housing projects tend to be located on the outskirts, offer
small 1–2 BHK flats and provide basic, no-frills amenities. Over the last
couple of years, Pune has recorded a certain amount of growth in this segment.
Interestingly, while there has been compelling growth in the high-end segment
with luxurious 3 BHK, 4 BHK homes, the budget housing story is far more attractive
to investors.
Pune’s real estate landscape is expanding constantly, and the prices
of the land on the outskirts are still low. This gives developers a chance to
offer affordable 1 and 2 BHK units price-tagged at between Rs. 10 lakh to Rs. 22 lakh.
Players like Maple, Jalan Group, Vastushodh and Javdekar Group are now
actively targeting this segment by providing decent amenities – and they have
long-term plans of expanding into the entry-level housing segment.
These affordable housing projects are spread across different sectors of
Pune. Locations such as Moshi in Pimpri-Chinchwad, Pirangut on the Lavasa Road
and Kirkitwadi ahead of the Sinhagad road are seeing more and more development
activity by local players such as UrbanGram, Vastushodh and Aapla Ghar.
The
emergence of upcoming townships like Nanded City is proving excellent
investment opportunities, as the prices in such projects are set to soar in the
near future.
The demand for these projects comes from both the IT and manufacturing
sectors. As Pune has many major manufacturing industries situated on the
outskirts of the city, the demand for the affordable residential housing is
scaling up among blue collar buyers. Factors such as constantly improving
connectivity and the increasing availability of social infrastructures like
hospitals and schools are the primary drivers of investment potential for these
projects.
Locations like Sanaswadi, Lonikhand, Talegaon Dhamdhere, Shikrapur on Nagar
Road and Shirwal towards Satara are thriving industrial hubs. These areas are
now seeing some major affordable housing development by players like Maple,
Pratham Developers, Star City and CFP, and the demand is excellent owing to the
affordability quotient of these projects.
The reception of entry-level housing projects in Pune always generates a
lot of interest from end users and investors. The affordable housing
proposition is especially attractive for first-time home buyers, since they
benefit from a tax deduction of one lakh rupees on the rate of interest paid
for housing loans up to Rs. 25 lakhs, provided the value of the flat does not
exceed Rs. 40 lakh.
Investors are not only attracted by the low price tags of these projects.
They also see that the rapid connectivity enhancements and improving social and
civic infrastructure at these locations, as well as the fact that many of these
projects are by reliable, market-proven developers, translate into
significantly faster and higher ROI than mid-income and luxury housing.
LOCALITY
|
PRICE
(Rs./sq.ft)
|
||
Moshi
|
3200-4000
|
||
Pirangut
|
3500-4000
|
||
Kirkitwadi
|
2800
|
||
Sanaswadi
|
3200
|
||
Lonikand
|
3000
|
||
Talegaon Dhamdhere
|
2500
|
||
Shikrapur
|
3200
|
||
Shirwal
|
3000
|
In a significant development that points the way for a growth trend of the
future, certain multi-national manufacturing companies have acquired large
numbers of units within these projects for their employees. In fact, the
strategy of providing housing to employees in order to boost loyalty, curtail
attrition and attract more staff is one that works very well in the Indian
context.
About the author..
Mr. Sanjay Bajaj, Managing Director – Pune, JLL India
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