Pune Real Estate

The government makes houses unaffordable

2012-09-03T06:45:00.000-07:00

The government makes houses unaffordable

Current scenario:

Why should homes not be affordable? Who is to blame for the rise in home prices? Some would like us to believe that cement producers are the ones to be blamed because this commodity has seen a spurt in prices. But cement accounts for just around 10% of construction costs (excluding the cost of land). Steel accounts for a higher 15%. Yet nobody looks at the speculative profits steel traders make. Moreover, unlike steel, cement companies have proved they can compete effectively against imports. This is possible only when the quality is good, and the prices competitive. True, cement prices went up by 10% last year, but steel prices went up by 20% while sand and brick by a whopping 300%. Cement industry spokesmen claim price increases to be much lower.

Analysis:

Housing is very expensive for three reasons. Land costs and construction costs in India, and particularly in Mumbai, are very high. Also, there is the cost and time involved in getting sanctions from the government, and the amount the developer and architect have to spend for speeding up work.
In Mumbai, land cost is high due to the low return on FSI (floor space index, a ratio which determines how much floor space you can have as a proportion of the land area). FSI should be increased so the cost of the flat or commercial area can come down. Also, there are many restricted areas—land which is in possession of MHADA (Maharashtra Housing and Area Development Authority) or the BPT (Bombay Port Trust), that should be opened up in a proper way.
There is a need to connect cities like Pune and Nashik to Mumbai. This will allow people to stay elsewhere and travel easily to Mumbai for work. That will reduce demand in Mumbai, forcing housing costs to come down.
Infrastructure within cities also needs to be developed. Today, the time and effort taken to travel between South Bombay and the suburbs is too much.
There is also the construction cost factor. The government can reduce taxes and restrictions on cement and steel.

Lastly, there is an interest cost for the time taken in getting all the sanctions for the projects. If the procedures take less time, it will bring the prices down.

Why Pune is Mumbaikar 2nd Home destination

2012-08-27T11:07:00.000-07:00

Pune considered as Mumbaikar 2nd home option- Also witnessing an reality shift.

If you add up Nightlife,traffic,population,slum,beaches,bollywood,business and mumb spirit what do we get is not a rocket science.

Mumbai meri Jaan Top view of the beauty

Mumbai is and will be Mumbai.

When it it comes to real estate and home buying option for Mumbaikar- Pune always poops up in the mind of every Mumbaikar.

Buying the first property is an extremely important event in any person's life. The second purchase is expected to be given more thought and less emotion. That is why Mumbaikars are always more particular about a second home purchase, and rightfully so.

Analysis - The real Insight:

“People of Mumbai have a lot of money. For them, the prices at which the flats are sold in Pune are very cheap. Talegaon is also a hot market for them. Mumbaikars buy flats in Pune because they are cheaper as compared to that in Mumbai whereas for the local residents of Pune, the house rates seem elevated.”
As far as the lifestyle amenities, educational and entertainment facilities are concerned, he says “That is good. The facilities that are provided here are provisional for people from all walks of life. The latest trends, new technology, multiplexes are of the same quality found in any other metropolitan city of our country. With the developing IT industries, the demand for houses definitely stays"

Pune Growth:

Pune has come a long way. It has now become an IT, educational as well as an auto hub. Consequently, a place where there was just a single hotel to stay in now accommodates innumerable hotels. Today, there is Meridian, Hyatt, and many more. All have come here. It is the result of the industrial and educational development that even the hotel and tourism industry have started to prosper in this bright city.

Deduction :

Bangalore and Pune are often associated as the best retirement destinations. Being a self-secured and traditional city, Pune is on the top of the list for people who desire to go to a place and retire, price being immaterial. It is the 'Oxford of the East' which needs to be developed and preserved

Pune Infrastructure future growth prospects - Driven by positive growth

2012-08-27T10:34:00.000-07:00

DEMAND = GROWTH IN PUNE INFRASTRUCTURE

Do you see A singapore in pune or this roads leads nowere:

Pune Infrastructure A road to future or a deadblock

The first question that anyone asks before buying a house is will it appreciate in value over a period of time?

The second question asked, is will I be able to lease it out easily and get good rentals for it?

The third and most important question, the answer to which actually decides the fate of question 1 and 2, is will the property market continue to remain as stable as it is at present?

In real estate every thing is decided on future. you can only make a decision when you a lot of promising facts and verify every details.

In recent years, Pune has become a hotter destination for IT companies. More and more IT companies are coming to Pune, to expand their businesses. There has been a substantial increase in IT office space construction, in the last decade or so. For every 1 million sq. ft. of IT office space coming up, there is roughly a requirement of 5 to 7 million sq. ft. of residential space to house the employees to work in these IT buildings. So IT has been powering the growth of Pune city at a very rapid pace.

An IT company Infrastructure

This has also influenced real estate development and demand to a large extent. Residential projects are increasingly being tailored to suit these sectors not only in terms of design, but also the location. People are coming back to India from the US. They are exposed to what is happening abroad and expect something comparable here too. The combination of the steady growth of these areas and the cosmopolitan people opting for it has played a key role in the evolution of Pune's realty market.

MG Road and the areas adjacent to it make the Central Business District (CBD) of Pune. The CBD consists of the entire stretch of the MG Road right from the Hotel Aurora Towers to the Sadar Bazaar. MG Road historically has been the city's premium office and retail destination totally supplied with good infrastructure as well as commercial amenities such as banks, retail shops, restaurants, post offices and accessibility to transport in this area.

The off prime CBD micro market comprises of the Bund Garden Road, Boat Club Road, Koregaon Park Area, JM Road, FC Road, Nagar Road and Swargate.

The secondary market covers areas such as the Peth's (seven in number), the bazaar aka Mandai, and newly developed self-sufficient townships such as Kothrud, Pashan, Bibwewadi, Baner, Aundh, Khadki Viman Nagar and Kondhwa.

The suburban and peripheral areas such as Kondhwa, Ahmednagar Road (Wagholi), Kothrud, Wanowrie, Talegaon, Alandi, Katraj, Jejuri, Kurkumbh and Wadgaon Sheri are the potential peripheral growth pockets, which have been earmarked for future industrial development.

The Wagholi-Ahmednagar Road is the core of the sugar trade which has also grown as a transport and warehousing hub. Large industrial houses acquired land in this area. So there are a lot of sectors driving employment generation and in turn, making the demand for housing in Pune that much higher.

So the infrastructural is bound to change as per development which is more due to peer pressure or may be out of embarrassment Imagine builder selling a flat of 300-400sq flat with personal swimming pool and elevator no no approaching road and pmc water connection

Time has come when authorities and people start thing with a positive mind frame and common goal.

Pune land records Will be online digitally available

2012-08-25T20:01:00.001-07:00

All land records to go digital 7/12 Extracts,Mutation Records Will Be Available Online

Property owners in the state can get online copy of the 7/12 extract of their land and also keep track of mutation entries that notify changes in ownership of land over the years.
A new system called e-records and e-maps promises to change the way land records are maintained in the state.The system will not only simplify the process of record keeping but also provide collateral benefits.
Once fully implemented,which is likely to happen by 2015,people across the state will be able to view outlines of properties online and even take print-outs on making necessary payments.This governance model has proved financially self-sustainable and holds the promise of becoming a trendsetter for e-governance projects in

Maharashtra Settlement Commissioner and director of Land Records Chandrakant Dalvi has fixed October 2,2015 as the deadline for making all land records digital.
The pilot project started at the Mulshi tehsil office two months ago.It is a joint initiative of the Inspector General of Registrations,revenue department and the land records department.Dalvi supervised the operations in the office on Friday where over 30 lakh old documents were being scanned.

This will enable citizens to get computerized notices of land transactions and complete the procedures of updating land documents within minutes.The system enables a horizontal connectivity between offices of the sub-registrar,the tehsildar and the city survey, said Dalvi.

Real estate developer Pranav Purohit,however,sounded skeptical.The step is welcomed but the problem lies with implementation.We have seen so many disputes over ownership in spite of earlier initiatives of the government with similar objectives, he said.But Purohit accepted that information in the form of e-records will come in handy when deciding about acquisition of new land parcels.
A senior bank official also doubted to what extent digitisation of land records will help a housing finance company or a bank in deciding eligibility for disbursing housing loans.He said that banks and home finance institutions follow guidelines set by the Reserve Bank of India and National Housing Bank.A lot will depend on whether the norms are changed to allow financing bodies to accept digital evidence about land ownership when granting a loan.If they do,the banks will be able to process a home loan proposal faster and with greater surety, he said.The official agreed that availability of an online record of land will make sure land records are not tampered with.
The e-records and e-maps software has been provided by Pune-based Vidhya Online Centre.As per the plan,about 20 million records of land ownership,involving six million farmers,will be digitized across the state.The system should be operational throughout the state within a time frame of three years.
Dalvi said the operators of the computerised system will be made accountable for their actions by using a biologin system that authenticates every login through a thumbprint.A log is maintained of all transactions in a session.
The present system shows the actual outline map of a property along with the structures in it,the area,the survey number and ownership.Land records form the base for all land reforms and therefore regular online updating of land records is essential.e-records and e-maps software will help do it,"said Dalvi.
Hard copies of land records available with government departments since 1930 have been handed over to the resp.department heads.

MVAT on sale of flats in Maharashtra

2012-08-25T02:09:00.004-07:00

MVAT on sale of flats in Maharashtra from June 20,2006 to 31st March 2010

VAT on flat sale in Maharashtra

VAT on sale of flats in Maharashtra is applicable since June 20,2006,when the state government added immovable properties to the Works Contract Act (later merged into VAT) of 1989.Since then the state has been charging flat buyers 5% VAT besides the stamp duty.

This amendment was brought in 2006 based on a Supreme Court judgment in the Raheja Builders Vs Karnataka government case of 2005.
Chandrashekhar Soman,who heads a consumer body based in Panvel,explained with the help of the following hypothetical case why the VAT charged in Maharashtra is unethical as compared to the Karnataka governments VAT.

Consider that a builder sells a flat in Bangalore for Rs 1 crore.For this two documents are prepared: One is a construction contract agreement on Rs 60 lakh on a court fee stamp paper of Rs 200.The other is of Rs 40 lakh on undivided share of land on which 4.8% stamp duty is charged (Rs 1.92 lakh).
If a VAT of 4% is charged on the construction contract (as per SC verdict of May 5,2005) the amount comes to Rs 2.40 lakh.So,the builder (who collects it from the flat buyer) has to pay Rs 4.32 lakh as the total tax (including VAT and stamp duty ) on the sale of a flat worth Rs 1 crore.Say if the property is worth Rs 50 lakh,the tax comes to Rs 2.16 lakh.

In contrast,a property worth Rs 1 crore in Maharashtra will attract a stamp duty (including zilla parishad tax,where applicable ) of Rs 6 lakh.

n addition,the government is asking for VAT of 5% (for properties sold between June 20,2006 and March 2010),which takes the tax amount to Rs 11 lakh (Rs 6 lakh stamp duty plus Rs 5 lakh VAT).For a flat worth Rs 50 lakh,it will be approximately Rs 5.5 lakh.
Soman said,A tax burden of Rs 5.5 lakh is too heavy for any home buyer.It is like the Jizya tax imposed by the Sultan of Delhi in the 14th century,exorbitant and unreasonable.
Soman demanded that the state government scrap the 2006 amendment to the Works Contract of 1989 so that a just tax system can be implemented.

Pune Metro Project - A Real estate Boom -Or Death of Genuine buyer

2012-08-22T13:42:00.002-07:00

Pune Metro Project 2015 : Be Aware Pune home Buyer :

A Brief Introduction on Pune Metro Plan:

The preparation of detaled project report work was undertaken by the Delhi Metro Rail Corporation and they submitted their report on 15 August 2008. It was approved by the Pune Municipal Corporation (PMC) on 15 October 2008 and by the Government of Maharashtra on 31 December 2008. Pune Metro Rail Corporation (PMRC), a special purpose vehicle (SPV) for the project, was formed on 15 January 2009. The DMRC's final draft report expects that Phase I could be completed by 2014-2015.

About 64,435 hectare land is required for the project.

The standing committee of the Pune Municipal Corporation (PMC) approved the detailed project report (DPR) for the metro rail project and forwarded the same to the state government for approval, requesting that the DPR also be sent to the centre so that a financial provision could be made for the project in the Union budget. The committee also accepted recommendations of imposing cess on new vehicles and surcharge on fuel to raise funds for the metro project.

Download Complete Analysis Exclusive PMC DPR Report (PDF File 82MB)

“The standing committee has approved the 31.59-kmlong metro line one, which includes phase 1 from Pimpri-Chinchwad to Swargate via the Agriculture college to the Pune Municipal Corporation and phase 2 from Chinchwad to Nigdi and Swargate to Katraj. The total cost, excluding tax and land price, expected for this line is about Rs 6,000 crore.

Phase	Line	Terminals		Length (km)	Opening date
Phase I	Line 1	Chinchwad	Swargate	16.59	2015
Phase I	Line 2	Vanaz	Ramwadi	14.93	2015
Phase II	Line 3	Deccan Gymkhana	Bund Garden	11	2021
Phase II	Line 4	ASI	Hinjawadi	18	2021

Phase I

The two routes that have been identified for the first phase are:

Vanaz - Ramwadi, via Deccan Gymkhana, Yerwada (14.9 km, elevated)
Chinchwad - Pimpri - Swargate, via Agriculture college (16.5 km, elevated/underground from Range Hills)

Line 1:First line of Pune Metro will run from Pimpri-Chinchwad to Swargate. This line will be elevated till Range Hills and then will be underground up to Swargate. This line will be further extended to Nigdi and Katraj / Hadapsar. This route will go via Bhosari, Khadki and Shivajinagar

Pune metro rail route PCMC

Line 2: It will connect Ramwadi to Vanaz via Mangalwar Peth and Deccan Gymkhana. The line will be 15km long and elevated. It is expected to cost 2,593 crore.

This line will further be extended up Viman Nagar / Kharadi and Lohegaon Airport.

Route map of Pune Metro Phase -1

Next Phase expansion plans:

Phase II

Second phase of the project will contain two lines and the extension of first phase:

ASI to Hinjawadi via Aundh (18 km elevated)
Deccan Gymkhana to Bund Garden Via Swargate and Race Course (11 km under ground)
Extension of lines from Pimpri-Chinchwad to Nigdi and Swargate to Katraj (11.5 km elevated)
Extension of lines from Aundh to Hinjawadi and Ramwadi to Kharadi Naka (13 km elevated)
Extension of lines from Ramwadi to Viman Nagar Airport (elevated) Future Expansion

The following routes and extensions have been proposed:

Agriculture college - Warje via JM road and Karve road (9 km elevated)
Extension from Bund Garden to Vishrantwadi (under ground)
Extension from Race Course to Hadapsar (Elevated)
Link from Bhosari to Moshi to link with Moshi-Chakan-new Pune international airport metro line. (Elevated)

Work of Metro is decided to start from 2015.

Current Approval Article :

Economic times Coverage:(click to open in new window)

Times of India coverage:

I have the complete Metro Rail Plan with route plans in PDF format. I will share it in next article.

In my search to find out why and how builders in pune are increasing the price , I can across a common term used by builders is " Future Development of the area and surrounding". To support this they immediately point out at the upcoming DP road around the area.

But Have you thought what would be the senario when they start saying "our site is close to an upcoming Pune metro station". I have no doubt this could be an benchmak in pune real estate price trend which could be incread in double fold. I wont be surpised if a 700 sqt flat would start from 1crore in city and 70-80 lac around pune.

Pune Pre -Launch offer All Enclusive 36 Lacs for 2BHK @ Undri Pune by Amit Enterprise

2012-08-20T13:21:00.000-07:00

PRE -Launch Offer By AMIT Enterprise

I recently received an email containing the lucrative pre launch offer by amit enterprise at undri,pune which is adjacent to Bishop school.

Email Quote:" Amit Astonia Classic Pre Launch Offer in Undri, Pune near Bishops School starting at Rs 3300psf - Project by Amit Enterprises Housing Ltd"

I received this email from HDFC reality.

Pre Launch offer by Amit enterprise near bishop school undri pune

Specification of the offer:

Pre launch rate :3300psf for non garden facing, 3500psf for garden facing flat.
2BHK flat at pre launch offer of area starting from 871. sq. ft
Starting Budget Price of 36 Lacs.
Location :Undri near Bishop School ,Pune
Key distance :Magarpatta - 8km Bishop school - 1 km, Coriantan club - 5 km ,NIBM 6.5 km

Google map of the location Undri,pune Near bishop School

View Larger Map

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Pune 2BHK At 40 Lacs Dream or Reality

Buy Flat in Pune 2BHK for 40Lacs - Dream Or Reality

2012-08-19T23:37:00.001-07:00

PUNE 2BHK FOR 40lacs – Dream or Reality

Every day when you woke up and start your day to day life you start wondering as a fighting common man ,will I be able to buy a flat (In dreams you always wanted a house) in city like Pune. You have made many compromises in your life, fought your destiny to make every moment count and still you are there standing helpless.

Don’t know how many you are in the same situation but I felt the same every day. But the thing is, owing a flat ideally a 2bhk of 1000sq. ft for 40 lacs in Pune still seems to be a distant reality.

When I started searching for a flat I had following things in my mind:

· Good locality. (Peaceful residential area).

· Nearby all major destination of the city (M.G. road, Koregaon Park, Pune station, Pune Airport, F.C road) *and by nearby I mean 15Km radius.

· Easily accessible from my company location.(Being from IT field Hinjewadi, Magarpatta, Kalyani Nagar, Viman nagar, Yerwada, Hadapsar )

· Good reputed builder whom I can trust on.(Reality is far from that)

· Good construction quality.

· Minimum required amenities and a good society.

· Last but not the least it should be in my budget of 40 lacs which I can repay with help of home loan

But I was not aware what harsh reality waits for me. I realized Pune real estate is very different, here your hard money is the least considered, only greedy and money sucking builders roam around you. They have only one aim- how to increase the PSF (per square foot rate) every second. I roamed from Katraj to kondwa to Hadapsar to wakad to hinjewadi to bavdhan to cinchawad,pimpri,pimple saudagar every adjoin area where I thought I can get my dream home but they said “ sir ji is budget me tho app bhul he jao 1 bhk 30-35 me chaheye tho boleye” Someone said “Hai na sir ye 2bhk hai hamare pass 600 sqt ft ka “. I said in mind “!@#$^%”

I thought as if my parents have done something wrong to spend their hard earned money on me send me to pursue engineering get a decent paying job so that I can fulfill my dreams. After this I started to compromise on my requirement list and made a new one:

· Locality is fine for me if it will be leave able in 3-5 years down the line.

· Nearby all major destination of the city (Pune city limits )* now 20 km is fine for me.

· Easily accessible from my company location: Now I was ready to drive 20 -25 km .

Rest remained the same.

· Good reputed builder whom I can trust on.(Reality is far from that)

· Good construction quality.

· Minimum required amenities and a good society.

· Last but not the least it should be in my budget of 40 lacs which I can repay with help of home loan.

After this I made a new list of area which I can search on – Katraj-kondwa saswad road, bhugaon, 5- km from chandni chowk, akrudi,kharadi,wagholi,dhanori,dighi,lohegaon,talegaon,hinjewadi phase IV. I was happy and excited that I will get a good deal in some of this area and I thought now I will buy a bigger flat i.e 1200 -1400 sqt foot (“kya huwa thori door hai I will have a bigger flat).

I went out and they quoted 3000-4000 sq ft rate in these area. My home hunt seems a big crime now.