Well-established Infrastructure:
The Key Real Estate Investment Criterion..
- by Mr. Anil Pharande,
CMD – Pharande Spaces
We keep hearing the
term 'market drivers' being used in real estate. What are they? Market drivers
can be defined as developments in an area that increase the value of living
there. It is a well-established fact that infrastructure is by far the most
important driver for real estate demand and property appreciation growth.
Infrastructure can
take many forms. It includes road development to boost connectivity of a
location, civic infrastructure such as dedicated water and electricity supply,
public gardens, etc. that increases the quality of living in the area, and
social infrastructure such as schools, colleges and healthcare, which result in
shorter travelling time to such very essential services.
Infrastructure must be
put in place either before or along with other real estate development.
Attempts to put it in place retrospectively create the kind of mess that we can
see in many of our cities today.
The building of flyovers and road widening are
attempted in highly congested areas, disrupting the flow of normal activity and
taking ages to be built, causing great inconvenience and massive costs to the
city because of the incessant delays.
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| Mr. Anil Pharande, CMD – Pharande Spaces |
Building
infrastructure is like growing trees - in both cases, there needs to be enough
space for them to grow, and sufficient opportunity for a root network to
deploy. Without space and depth, neither trees nor infrastructure can grow and
flourish.
If we take the case of Pune as an example, we can see that building
infrastructure as an afterthought to real estate development, rather than as a
precursor, does not really work well.
Pune’s haphazard development
in the past has not been favourable for decent infrastructure deployment to
complement its rapid development on other fronts. Battling severe constraints,
Pune’ development authorities are doing their best to counter the ill-effects
of unregulated development which has so far been taking place.
We are seeing
some good results in building support infrastructure, but the Pune Municipal
Corporation is actually a losing battle. This is amply illustrated by the fact
that the Pune Municipal Corporation is not able to provide suitable parking,
traffic management solutions and utilities supply despite enormous investments.
Guidelines For
Homebuyers & Investors...
· The infrastructure of a location is a major
focus area for property investors for a very good reason. Real estate investors
want to attract end-users, either as rental or / purchase clients, to the
properties.
They know that an area without sufficient infrastructure will be
unattractive to their clients, because the quality of living quotient is low.
· Again, properties in areas without good
infrastructure tend to have cheaper property rates for a reason. Developers
with projects in such locations know that the area has little or nothing to say
for itself in terms of quality of life. The only way they can hope to sell
their projects is to offer very attractive rates.
· Buyers should place infrastructure
availability prominently on their checklist while scouting for suitable homes.
Road and rail connectivity, water supply, proximity of schools, hospitals and
shopping outlets are of paramount importance.
Buying a home cheaply if the
location does not offer these is meaningless, and will give cause for regret.
· If one is buying a property purely as a
long-term investment and primarily for capital appreciation, one can afford to
be a bit philosophical about existing infrastructure. After all, one is not
planning to live there and does not expect very fast appreciation.
As long as
there is a reasonable assurance that it will arrive in the foreseeable future,
it makes sense to invest in a property located in an emerging area where
infrastructure is in its nascent stages.
· However, if one is buying the property in
order to generate rental income, existing infrastructure is far more important
than upcoming infrastructure. People looking for rental options are also
looking for a certain ease and dignity of living. They are willing to put the
option of buying a home aside so that they can live in a good home in a good
location on rent.
· Where the option exists, give a high
preference to townships over all other options. While checking out townships,
ensure that they are located in areas which have a good saturation of support
infrastructure as well. Most large Indian cities now have township projects
coming up.
· In Pune, the infrastructure-rich
Pimpri-Chinchwad Municipal Corporation is attracting the highest number of
buyers and investors of township properties. In other parts of the country,
Navi Mumbai and the Kalyan-Dombivli and Vasai-Virar belts are becoming
important township hubs.
· In Delhi NCR, the areas to look at for
townships are Ghaziabad, Faridabad and Greater Noida. In Bangalore, the growth
hubs for townships are Yelahanka and Devanhalli, and in Chennai they include Sriperumbadur,
Perambur, the OMR belt and Anna Nagar.
About The Author..!
Anil Pharande is
Chairman of Pharande Spaces, a leading
construction and development firm that develops township properties in Western
Pune. Pharande Promoters & Builders, the flagship company
of Pharande Spaces and an ISO 9001-2000 certified company, is a
pioneer in the PCMC area offering a diverse range of real estate products
catering especially to the 42 sectors of Pradhikaran.
The
luxury township Puneville at
Punavale in West Pune is among the company's latest premium offerings. Woodsville in Moshi is another highly successful
PCMC-based township by Pharande Spaces which is now in its 3rd phase.
For media contact
Jay Kalghatgi
Client Interface - CopyConnect
Mobile: 93201 42248, jaykalghatgi@gmail.com
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