Indian Millennial Homebuyers: The Times Are Changing

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Anil Pharande, Chairman – Pharande Spaces

Everything that your parents may have communicated to you about owning a home may be incorrect if you are a millennial under the age of 35. However, don’t blame yourself for this – your parents operated by a rigid set of values that they have simply passed on to you. It was a simple enough formula – get a good education, get married, have kids and buy a big flat in the city. This is – or was – the quintessential Indian middle-class dream.

This dream – and the formula – may continue to have relevance to quite a few younger people in India, but the way life works for today’s millennials in India is no longer so cut and dried as it was for their parents. In the first place, we have a rapidly evolving and increasingly competitive job market in India.

The career charts of Indian millennials are no longer as predictable as those of their parents were – nor does a sound college education mean that one can actually get the best jobs anymore. Also, millennials are the ‘job hopping’ generation which wants to sample different lines of work and also different companies with varied work cultures before they ‘settle down.’ This is one reason why many Indian millennials initially prefer to rent rather than buy their homes.

Secondly, because their careers are no longer cast in the concrete of limited options like engineer, doctor, lawyer, banker or ‘Government job, young Indians today are marrying later and are not necessarily in a hurry to have children once they do, either. When they do decide on having children, having one child is, more often than not, enough. The typical millennial family of today is essentially nuclear and does not subscribe to the values that drove the much larger and much more complex joint family package.

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They are more flexible and value their freedom, so they are not overly invested in making heavy financial commitments as soon as they are able to (making such commitments was a defining factor of the previous generations of Indians).

What does this mean in terms of their home purchase decisions? For one thing, it means that a smaller flat – even for a dual-income household – is perfectly adequate to begin with. What increasingly matters for the young, smart socially conscious Indian nuclear family of today is not necessarily size, but:

  • Value for money (banks and developers should understand by now that dual income does not equal dual gullibility)
  • Being able to get to and from work conveniently (not because getting to work fast matters most, but because getting home faster leads to better work-life balance)
  • Good public transport connectivity (because using public transport is good for the family budget as well as the environment)
  • Two car parking spaces (because two earning members may need to be as mobile as possible)
  • Fast broadband + Wi-Fi connectivity and other smart home features (because many Indian millennials can and do work from home, or from home as well as an office)
  • Environmental sustainability of the project (because most Indian millennials do believe that the world can become a better place)

Upgrading to larger homes should be an option, but it is by no means the only acceptable path for the Indian millennial to follow. For the previous generations, the ‘upgradation’ route was more or less socially enforced – but that trend is now history.

Strangely, many residential developers in cities like Pune have not caught on to the reasons why their projects are not selling as fast as they used to. They choose to believe that it is because ‘market conditions’ are currently ‘slow’. That may be true, but the larger fact is that housing projects that appealed to their parents may not have the same attractiveness for today’s millennials.

Projects that do not meet the requirements of today’s younger generation of working professionals are not going to work for this buyer segment, regardless of the market conditions.

One truth about the real estate market has not changed, even for millennials – while it is not all about ‘location, location, location’ for them, location is still certainly very important. It’s just that ‘central location’ is no longer the Golden Rule – Indian millennials are far more inclined to purchase their first homes in the suburbs, not in the city centre.

They are also far more likely to buy homes in organized townships with stand-alone infrastructure and their own schools, healthcare and shopping / entertainment facilities. Townships with their own office complexes offering potential walk-to-work or cycle-to-work possibilities and those close to major employment hubs such as IT parks and manufacturing belts are the most preferred.

About The Author:

Anil PharandeAnil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in West 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.

Infrastructure And its Correlation to Home Buying

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Anil Pharande, Chairman – Pharande Spaces

In India, as in other countries, it is a simple fact that localities which are as close as possible to important workplace areas will be most consistently sought out by people looking to buy homes. Therefore, projects with great connectivity by railway and road, see the highest demand for residential properties.

Property investment is always driven by the infrastructure in and around a locality. From sufficient roads to reliable water supply and drainage, infrastructure includes all the physical characteristics which contribute towards creating sustainable communities. Unsurprisingly, property costs close to infrastructure including airports, railway stations and roads are higher than in other regions.

If a location does not offer reliable electricity and water supply, connectivity, public transportation stops and sanitation by ways of good sewerage and waste disposal, it will not work as a residential destination regardless of what else it offers. All these are services that nobody living in a modern Indian city is prepared to live without.

From a property marketplace outlook, sufficient infrastructure in an area includes everything that leads to an easier, convenient lifestyle which does not have to contend with any kind of shortages, service outages and breakdown of public facilities.

Well-planned roads and public transport

Roads are required to make transport quicker and simpler. They are important right from the time when basic infrastructure and initial real estate development are being put in place, as raw materials and labour has to be able to reach the location. Once the area is established, roads let people travel to and from work, for kids to get to and from school and for access to shopping and entertainment.

Proper planning of road, rail and public transport nodes is very important. The key factor to be kept in mind during this planning is that people do not want to too close to bus depots, railway stations, shopping areas and industries businesses – but neither will they wish to be too far away from them.

Reliable supply of essential utilities

In a developing country like India, there are still many towns and suburbs of cities that do not enjoy reliable water and electricity supply, garbage management and public security features. With the income of typical Indian families constantly growing, today’s urban homeowners are willing to spend more to get access to seamless water and electricity, and adequate security.

Naturally, residential complexes that provide 24×7 water and electricity supply and round-the-clock security are far now highly favored. This is what has led to the growing momentum of township development in Pune and even more so in PCMC. Housing projects in places that don’t have reliable utilities and where security is a concern do find takers – but these are usually exceptionally budget-strung buyers who resign themselves to having to wait for everything to fall in place at some stage.

Sanitation infrastructure

In India, there has been rising awareness of the minimum levels of sanitation that a household should have access to. A new location will only start attracting real demand from homebuyers if it offers appropriate measures of sanitation such as municipal road cleaning, trash removal, sewage and waste water disposal, and other related services. Without these services, life becomes unhealthy and intolerable. A location’s score on the sanitation front is a very important criterion for homebuyers who are shortlisting housing projects in which to buy a property.

Social infrastructure: Schools, hospitals, shopping and recreation

Indian families put great onus on the availability of schools in a residential neighbourhood. This is why areas with good schools in the vicinity fetch higher property rates than most others. This is not only a question of convenience for Indian parents, but also of the safety for their children. Because of life’s uncertainties and the rise in road and domestic accidents, hospitals are another component in an area’s social infrastructure that is of critical concern for homebuyers. They expect quick access to medical facilities –  this is non-negotiable.

Recreational open spaces such as parks are also consistently in favour from city dwellers that wish to experience nature to some extent, and thereby be able to find some refuge from the urban madness that rules most of their days. A locality that offers water bodies, gardens, parks and playgrounds in the vicinity are considered premium.

Developers of large integrated townships are aware of how important the availability of good social infrastructure has become, which is why they include gardens and artificial lakes as well as schools, shopping and entertainment inside the project premises for their residents.

Infrastructure in all its facets is therefore hugely important in today’s residential property scenario, and it directly influences the buying behavior of Indians scouting around for homes. The degree to which social and civic infrastructure is available in a neighbourhood dictates how successful a residential destination is today.

This is why integrated townships have become the most important trend on the Indian property market today. Townships are not dependent on how proactive the municipality and private sector players in deploying social and physical infrastructure. They deploy it themselves in perfectly-contained microcosms that not only include residential projects but also office and retail complexes as well as educational and healthcare facilities.

Integrated townships ensure that their residents have everything they need for a modern comfortable and secure lifestyle accessible within easy reach, for instant use. The high demand for township properties in rapidly urbanizing cities like Pune and PCMC vouchsafes the fact that homebuyers are no longer willing to compromise on the advantages of sufficient infrastructure in their neighbourhoods.

About The Author:

Anil PharandeAnil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in West 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.

Rainwater Harvesting: Not Just an Option but A Necessity

Anil Pharande, Chairman – Pharande Spaces

In a land-locked city like Pune, the value of water is inescapable. Factors such as climactic changes happening at a national and global level are causing water levels to fall. Overpopulation has resulted in more and more acquisition and development of land – and, even worse, for landfills, cutting back on water bodies that were once available and accessible.

Deforestation has further compounded the deficiency of water, as this causes regional rain to eventually become unpredictable. Several areas are critically affected by a dearth of usable water – a city like Pune is, actually, a prime example of the happening throughout India.

More and more of the world’s burgeoning populations will be moving to urban areas in the years to come. As a result of accelerated property development in our cities, the greatest requirement for critical resources such as water is focused in urban areas. As a consequence, multistory residential complexes are being constructed at an extremely rapid speed.

The earth’s surface is 70% water; yet, very little of this is actually usable or drinkable by humans. It is very likely that we will shortly reach a stage when the quantity of useable water present on the earth’s surface isn’t sufficient to satisfy all of the requirements of the development occurring to accommodate the growing population.

Rainwater harvesting is the solitary realistic option to counter the growing menace of rapid water depletion – and this real and present option is definitely catching on in our cities. Rainwater harvesting involves accumulating, filtering and storing rainwater to be utilized for assorted industrial and residential purposes.

Rainwater is a clean, free source of potable water. Rainwater harvesting used in residential properties, which involves trapping rainwater from roofs and directing it into underground storage tanks or cisterns, can satisfy 50% of a regular family’s water needs.

The truth is, rainwater harvesting isn’t just a strategy to make maximum use of the natural resource – it also has minimal environmental impact. Naturally, it leads to substantial price savings on recurring water charges in residential buildings. In a city like Pune, a huge number of residential societies are dependent on expensive water tankers which extract ‘hard’ water from borewells – a process which further depletes ground water levels and causes all kinds of associated problems to the environment.

Urban water supply calls for pumping stations in addition to putting up treatment plants and supply conduits. With the rate of increase in urban population, city planning authorities cannot match utilities in the majority of Indian cities. Engineers and geologists are constantly fighting to discover new sources of water.

With borewell shafts going deeper as the hunt for more water continues in cities like Pune, water supply can actually be significantly supplemented by rainwater and decrease the pressure on the usual water supply.

When rainwater is harnessed in a housing complex, it can be utilized for assorted non-drinking functions that call for substantial volumes of water. Because rainwater can complement the traditional water supply system, this means considerably reduced utility bills.

Rainwater harvesting is equally appropriate for large manufacturing units that use up substantial amounts of water. Such industries can reduce the pressure on groundwater by making use of rainwater for all their requirements.

A perfect fallback position

Climate change has caused significant disruptions in the weather patterns in lots of Indian cities, resulting is decreased rainfall. Rainwater can be collected, stored and used during drought seasons to complement the ordinary water supply. In cities like Mumbai and Pune, the dreaded bane of rationing and water shortage is mitigated with rainwater harvesting, which also reduces the dependence on dams and water reservoirs.

When rainwater harvesting systems are used by a sufficient saturation of residential buildings in a city, there is a substantial drop in pressure on drainage systems, thereby reducing the possibility of floods, soil erosion, and surface run-offs. Rainwater harvesting is a perfect solution especially in low-lying regions, which are usually prone to floods due to over-taxed drainage systems.

The use of rainwater harvesting systems allows groundwater levels to recharge, which in turn aids in enhancing urban greenery; in fact, this is actually the sole dependable means of having green places without leeching away from the direly needed water supplies within urban areas.

Simple to set up and use

Rainwater harvesting systems are simple to put up and operate. There is absolutely no requirement for the complicated purifying systems which need to be applied to cleanse groundwater, since rainwater is pure. Rainwater collection systems use modern yet extremely simple technology, and their care simply involves occasional cleaning of pipes and the storage tanks to ensure the rainwater gathered is not contaminated.

Actually, rainwater harvesting can be used by anyone. Installation of gutters is step one for buildings that lack them, together with a filtration system to make certain that any other sort of debris or leaves will not find their way into the storage tanks. Safety precautions include having locking bars or lids to stop the breeding of mosquitoes or other forms of pollution of the stored water. Catchment areas in a city may comprise paved regions for example roads and car parks, where water may be picked for several non-drinking purposes.

Need for more government support

Most of the municipality areas of cities like Pune have a huge number of housing projects which don’t have the required rainwater pits. In quite a few cases, the lack of space and the overall design of the project may not make rainwater harvesting pits feasible at all – but where it is possible, no effort should be spared to create them and put rainwater harvesting systems in place. New apartment projects must, of course, be engineered from the world ‘go’ to incorporate rainwater harvesting systems.

While all such measures have been implemented in the more progressive PCMC (Pimpri-Chinchwad Municipal Corporation) of Pune, the speed at which the Pune Municipal Corporation is moving on this front leaves a lot to be desired. Rainwater harvesting is a standard feature in PCMC’s large integrated townships.

As rain is becoming noticeably scantier, the government has already begun undertaking measures to encourage residential societies, educational institutions, and similar buildings to optimize water use and exercise better principles of water economy.

The rapid, yet necessary proliferation of paved areas and roads in our cities is preventing the proper percolation of rainwater into the ground, and causing water bottlenecks on the outskirts. Establishing regularly spaced rainwater harvesting pits in urban localities is definitely the way to go, and must be implemented in cities like Pune without further delay. Additionally, the city authorities must put in greater efforts to educate citizens about the benefits and implementation of rainwater harvesting.

About The Author:

Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in West 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.

PCMC’s Townships Save the Day for Pune’s Home Buyers

Anil Pharande, Chairman – Pharande Spaces

Townships are a new property mantra in India, and for the bigger cities they’re without any doubt the sole remaining hope for good quality living standards. Slowly but surely, residential quality of life in cities like Pune are on the decrease, and township properties are rightfully getting increasing importance as the most logical response to the increasing need for quality-based living.

In cities such as the Pimpri-Chinchwad Municipal Corporation, the ‘Infrastructure First’ strategy being employed by the governing authorities since several decades has served to provide highly adequate living conditions for PCMC residents. On the other hand, the Pune Municipal Corporation (PMC) has not been able to keep up to speed on its own infrastructure scenario. The heedless way with which real estate development has been taking place in Pune has not only resulted in a veritable concrete jungle but also made problems like traffic congestion, air and noise pollution and also water depletion much worse over the past several years.

PCMC – The New Townships Capital

In this depressing scenario, the massive integrated townships being developed in the booming city of PCMC has offered Pune’s citizens a new and invigorating lifestyle standard. In the PCMC, the integrated township revolution started in areas like Ravet and Moshi, and today the city’s leading developers have also established high-end townships in Punavale and on Spine Road.

Though negligence and greed are definitely operative factors in the illogical way the Pune Municipal Corporation has been developing, it also has certain limitations. In the first place, integrated township projects require substantial acreage, and large plots have essentially been completely used up in the central regions of the PMC. As consequence, the focus has now shifted to the Pimpri-Chinchwad Municipal Corporation, where superlative support infrastructure, affordable property rates and a scientific approach to real estate development still make townships a very workable proposal.

In integrated townships, the issues are infrastructure shortfall and deteriorating living conditions are totally negated. These projects provide an extremely high grade of living standards, set to the backdrop of tasteful natural surroundings and adequate open spaces.

Providing township-level facilities in smaller residential projects would entail prohibitive prices for the developers – and the cost escalations would have to be passed on to the property buyers. Such facilities would immediately boost a smaller residential project into the luxury category, with consummate price implications to buyers. However, as a result of the economies of scale, township developers in the PCMC are giving the township lifestyle option to buyers at prices that reasonable and attractive. 

High-quality infrastructure, open spaces and instant accessibility to every requirement of day-to-day living in these townships result in a first-class lifestyle equation since all residents in a township gain from one big integrated and centrally managed system.

Township Properties – Higher Price but Ultimate Value

As already mentioned, when a builder offers township-level facilities in smaller housing projects, the prices to consumers are comparable to those of high-end luxury residences. In townships, the vast variety of facilities, fully-integrated infrastructure as well as the availability of schools, hospitals and shopping complexes within the premises obviously means that township properties come at a price that is somewhat higher than standard multi-storey flats.

On the other hand, the added expense is vindicated by the reality that people who buy into township properties are guaranteed a greatly superior living standard – not to mention vastly higher yields on investment.

For property buyers who just don’t desire to compromise on their lifestyle choices, the township properties of PCMC are the most logical and intelligent options. The direct benefits include a healthier life thanks to open spaces and greenery, complete security, the guarantee of high-grade infrastructure and facilities within the premises, and instant accessibility to recreational facilities and retail outlets. This results in a very high measure of convenience and comfort within an entirely cosmopolitan ethos.

About The Author:
 
Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in West 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.

Demonetization: Advantage India’s Youth

– Anil Pharande, Chairman – Pharande Spaces

Digitization is the future – but until now, it had been the Indian government itself that stood against the future by encouraging cash payments and levying heavy charges on digital marketplaces. Invariably, the merchant discounts rate (the fee that is supposed to be paid to the banks) was passed onto the end customer. However, under the current Modi establishment, things have begun looking brighter.

The announcement of demonetization of high-value currency notes certainly came as a shock to the masses, but it seems that people have not only understood the reason behind the move but are also offering full support to this change. This is especially true for the younger earners and spenders in our economy. There are several favorable aspects to the younger generation that makes demonetization a welcome move at this point in time for our economy.

Firstly, the current generation is by and large rejecting many of the concepts that the previous generations believed in. Things like hoarding of assets, black money and tax evasion wherever possible are by and large unacceptable to the young contributor to the economy today. In fact, just the opposite.
 
The younger generation is more in favor of spending and putting their income back into the flow, rather than keeping it aside for emergencies. They believe in using credit cards and similar financial tools that don’t involve hoarding. The principled younger earners of India today prefer to be transparent taxpayers rather than find ways to evade tax and hide their income. They know and appreciate that that their tax contributes towards the betterment of the nation and assisting the lesser-privileged. This is a highly responsible generation.
 
Secondly, this highly tech-savvy generation knows all about digital payments. A twenty-five-year-old of today is more predisposed and equipped to making digital payments than people from the previous generation. They are more comfortable with mobile wallets than with carrying cash. The rapid penetration of smartphone technology and online payment gateways has also helped build trust, while offering convenience.
 
Thirdly – and most importantly – this is a generation stands firmly against any form of corruption. It’s not just about making your own lifestyle comfortable anymore but growing with the nation. They fully support the recent demonetization move’s primary intention to weed out and expose corruption in India.
 
They believe that:

  • Demonetization will equip authorities with the tools to track down individuals and organization who hold unaccounted cash and evade tax. With the high-value currency note ban, all cash hoarders now are forced to put their cash back in the economy and make it accounted for. The younger generation is a staunch supporter of such a level playing field, and vehemently opposes all forms of inequality
  • Black money has always been the prime funding for all kinds of illegal activities like gambling, drug use and trafficking, terrorism and inflated market pricing. This generation’s stand against such activities is very much on record
  • Demonetization will curb tax evasion and now everyone, howsoever rich or resourceful, will have to pay their taxes in full. It will not be just the middle class that will be contributing to tax-funded projects like infrastructure development, education, hospitals, schools and other such moves towards making a better and equal society. A big thumbs up from the younger generation.

As India moves more and more towards digital currency because of demonetization, the ensuing boost to online commerce will also encourage all kinds of startups that the young Indian are working or investing in. Moreover, people with lawful and accounted-for money will have nothing to fear – and the younger generation is all about living their lives free of fear – and free to explore life’s endless possibilities.

About The Author:
 
Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in West 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.

How Infrastructure Drives Real Estate Demand

– Anil Pharande, Chairman – Pharande Spaces

All property investors are familiar with the phrase ‘market drivers’, which has become one of the most utilized terms in real estate investment. What exactly are market drivers? They can be explained as advancements within a region which boost the overall worth of the location, and the desirability associated with residing there. It is a well-established fact that the infrastructure of an area is a key criterion for home buyers, and therefore property investors.

Infrastructure has numerous types. For instance, roads are considered key infrastructure, as they enhance the connectivity of the area. There is also civic infrastructure, which involves the availability of public services in the region. In India, the primary aspects covered under civic infrastructure are reliable water and electricity supply, without which an area falls flat as a residential location and therefore as a real estate investment destination.

infrastructure3

Then there is the factor of social infrastructure, which accounts for the liveability of the area. At the most basic level, civic infrastructure will include public transport and shopping outlets, but educational institutions and hospitals are also important. People expect to have colleges, schools and healthcare facilities close to where they live. Therefore, the level of saturation of social infrastructure will play a big role in the overall value of the location as a residential and investment destination.

The global standard for urbanization which is evident in most developed countries is that all or most of infrastructure required to make an area livable and desirable as a real estate destination are set up prior to or opening it up for large-scale real estate development. This is because efforts to put the necessary infrastructure in place retrospectively results in inconvenience to the existing population because of decreased public mobility during construction of such projects.

Retrospective construction of infrastructure projects also pollutes the environment during the actual construction process, and this is nothing but bad news in an area which is already inhabited.

Creating the infrastructure which is required to make a location liveable and also supportive to various economic functions can be compared to creating vast green cover in an area . In both instances, there is a primary requirement of adequate space. Another vital factor for successful infrastructure creation is time. In the case of trees, the root systems must be given adequate time to penetrate deep enough to provide anchorage as well as access to deep-lying groundwater. Similarly, infrastructure must be given enough time to be deployed, become functional and start servicing the area properly. Without space and time, both forestation and infrastructure creation become futile exercises.

infrastructure

If we take the cases of Pune and the adjoining Pimpri-Chinchwad Municipal Corporation (PCMC), we see a vast difference in successful infrastructure deployment. In Pune, the PMC has been unsuccessfully trying to provide retrospective infrastructure support to its massively congested and largely dysfunctional city areas.

Almost every new infrastructure project in Pune is hotly contested by local political parties and becomes road blocked by bureaucratic red tape. One of the reasons is that these projects affect already populated areas, which represent vote banks. The result is that most of these projects take ages to be built, and many are eventually shelved altogether.

The advantage that the PCMC has enjoyed is that it follows a proactive rather than reactive approach to infrastructure creation. In other words, massive Greenfield areas are taken up by the town planning authorities for infrastructure creation, and only then  opened up for further development by private builders. This has resulted in extremely viable, plug-and-play residential neighbourhoods and commercial districts which start delivering the goods from day one.

This proactive approach to infrastructure has earned PCMC the distinction of being one of India’s most sought-after destinations to live and work in. PCMC’s superior infrastructure has attracted the highest number of multinational companies and industries to the region, and this has also led to the highest rate of employment creation in PCMC. As a result, the Pimpri-Chinchwad Municipal Corporation has emerged as the most preferred city for home buyers who are looking to live close to where they work – and simultaneously enjoy a superior quality of life.

About The Author:

Anil PharandeAnil 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.

PCMC’s Integrated Townships: Redefining Traditional Luxury

– Anil Pharande, Chairman – Pharande Spaces

Indian luxury real estate is in rapid evolutionary mode, and few of the previously accepted definitions of a luxury home have stood the test of time. For luxury home developers, the challenge has shifted from offering a number of attractive add-ons to providing a well-rounded residential experience that transcends luxurious exteriors, interiors and amenities.

Luxury townships are the obvious answer to the questions today’s buyers are asking. They are not looking for mere glamour – because of the mounting challenges of urban life in cities like Pune, they are also looking for superior infrastructure, cutting-edge security and project management and a walk-to-work option. These are obviously not an option in standalone luxury buildings – nothing less than a fully integrated luxury township can provide such advantages.

puneville2

A number of Indian developers who previously specialized in traditional luxury residential projects – one or two snazzy buildings in a tony part of town where ‘address value’ accounts for a massive price premium – have therefore shifted their focus to the township format. This is because luxury living in today’s context is a 360-degree lifestyle equation which cannot be limited to elegant superficialities.

The buyer profile for integrated luxury townshipspuneville is also different today. These are not HNIs hailing from families with protracted histories of wealth – they are young, self-made entrepreneurs, the corporate upper management cadre and high-placed Information Technology professionals.

This new breed of luxury home buyers is not swayed by impressive addresses and the other factors which dictated how luxury was interpreted in the past. They are looking for the aspects that spell genuine luxury today – convenience, safety, reliable water and electricity supply, modern recreational facilities, on-the-spot availability to essential services like hospitals, schools and shopping, and good internal and external connectivity.

punevilleThey will not spend their hard-earned money on an expensive location but invest in a superior living experience for themselves and their families. Moreover, the traditional CBDs of cities like Pune are no longer the areas which yield the most lucrative jobs – the IT and manufacturing hubs in modern satellite cities like the Pimpri-Chinchwad Municipal Corporation (PCMC) are the next employment hotbeds which are driving both the demand and trend for high-end homes.

This luxury home buyer demographic is highly tech-savvy and environmentally conscious, and attributes a lot of value to ‘smart’ and ‘green’ features – not only at a residence level but at a project level. Again, this is only possible in integrated townships, and this is what has spurred the growth of PCMC’s ultra-modern townships over the last decade.

These townships offer their residents:

  • Broad, well-lit internal roads
  • 24×7 water and electricity supply
  • Multiple user parking per unit
  • Multi-level security
  • Green open spaces
  • Conveniences  such as shopping malls, banks, schools and hospitals within the project
  • Easy connectivity to other parts of the city
  • Modern recreational facilities

The best integrated townships also include high-grade commercial spaces and give residents the ultimate luxury – the walk-to-work option. Obviously, this new definition of luxury living provides a stark contrast to the traditional concepts of luxury homes, which was usually tied to a vanity address in an exorbitantly pricey location. Though older luxury buildings in the core areas of cities like Pune are invariably redeveloped into luxury skyscrapers, there is nothing that can be done about the fact that the locations themselves are cramped, polluted, devoid of support infrastructure and often hemmed in by slums and tenements.

While the window view from a luxury home in such a setting is usually one of chaos and urban decay, the corresponding view from a home in an integrated township is one of greenery, orderliness and unpolluted air. No wonder, then, that the younger and smarter generation of luxury home buyers today prefers the benefits of contemporary luxury far away from such areas. Integrated townships are their obvious choice.

About The Author:

Anil PharandeAnil 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.

PCMC Beats Pune To Rank Among India 10 Cleanest Cities

– Anil Pharande, Chairman – Pharande Spaces

The verdict by Swachh Survekshan 2016, a survey undertaken by the Ministry of Urban Development February 15, 2016 to monitor how far the Union Government’s Swachh Bharat Mission has progressed, was an eye-opener for India. While the multiple award-winning Pimpri-Chinchwad Municipal Corporation ranked 9th on the list of India’s 10 Cleanest Cities, Pune – administered by the Pune Municipal Corporation, did not make it to the Top 10 list at all.

punawale_pharandeAltogether, the Swachh Survekshan 2016 survey studied 73 cities having populations of 10 lakh or above, and focused on aspects such availability of public and private latrines, the efficiency of services delivery, solid waste management and infrastructure development. Always at the forefront when it comes to providing a healthy, wholesome life to its residents, PCMC had in the recent past added to its solid waste processing capabilities via a new garbage depot.

This mechanised plant processes 500 tonnes of garbage into compost useful for agriculture on a daily basis. Moreover, PCMC has set the national trend in its progressive and scientific management of landfills, as well as its initiative to turn waste plastic into energy.

Another variable which the Swachh Survekshan 2016 survey focused on was the effectiveness of communication in the identified cities, specifically their citizens’ access to information and education, and the civic authorities’ proactive approach to in Behaviour Change Communication (BCC). BCC is a very important interactive function via which a city’s governing authorities communicate with the city’s population to ensure that initiatives to help the city to grow and prosper are understood and adopted.

bannerWithout a doubt, PCMC has been consistent in upholding its promises to provide the very best living standards to its residents. Therefore, the fact that it has been numbered in the 10 Cleanest Cities of India comes as no surprise. The Pimpri-Chinchwad Municipal Corporation is a veritable masterpiece of urban planning, driven by an unrelenting focus on infrastructure, sustainability and future-readiness. It offers a sharp contrast to the confused and retrograde approach being followed by the Pune Municipal Corporation, which has not been able to deliver on the functions and aspects that make a city worth living in.

The fact that PCMC has been able to come out a winner on the list of India’s 10 Cleanest Cities is all the more remarkable if we consider that this region is home to the thriving MIDC industrial belt, as well as the Hinjawadi Infotech Park. These hubs are among the country’s most prolific employment generators, causing countless new skilled professionals to make PCMC their home every year.

Despite the immense complexities this presents to the city authorities, PCMC has consistently risen to the challenges and continues to provide people from all walks of life and income segments with a wholesome, healthy environment to live and work in. It has been able to do this is by encouraging the development of integrated townships and ensuring that all real estate development happens with strict compliance to its town planning norms.

In PCMC, open spaces and green ‘lung’ pockets are available in every sector to control pollution and provide citizens with places to meet and relax, and wide roads and over/underpasses allow for free-flowing traffic. Water and electricity supply is several times more reliable than in the Pune Municipal Corporation, and highly efficient civic sanitation services ensure that all residential and commercial zones are kept clean.

Thanks to these factors, there is no doubt that PCMC will move further up the rankings over the next few years. In the meantime, it will continue to focus on maintaining its well-deserved reputation for being the best region in the country for people to work, live and prosper in.

About The Author:

Anil PharandeAnil 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.

PCMC Real Estate By 2025: Looking Into The Future

– Anil Pharande, Chairman – Pharande Spaces

Pimpri Chinchwad Municipal Corporation (PCMC) is internationally known and acclaimed for its progressive and sustainable approach to real estate development. The model of urbanization that PCMC follows is known as ‘planned development’, which means that real estate is developed according to a Master Plan. Today, the real estate sector in PCMC is renowned for its New Age residential configurations such as integrated townships, which have become the most preferred option among home buyers.

While Pune also has a thriving real estate market, it cannot compare to what is happening in PCMC because the Pune Municipal Corporation (PMC) does not follow a planned approach to real estate development.

In fact, Pune is very likely to become a smaller version of Mumbai over the next decade. This is because infrastructure in both these cities is only addressed retropsectively, and not not proactively like in the PCMC. Because of the planned urbanization happening here, the Pimpri-Chinchwad Municipal Corporation is already being seen as the City of the Future.

PCMC By 2025

urbanization

Over the next decade, PCMC will have reached its fullest potential. Obviously, it will look very different from what we see today. It will have grown into a harmonious montage of large industrial units, IT Parks, hotels, shopping and entertainment plazas, educational institutes and healthcare facilities – all against a backdrop of massive public parks and gardens, and crisscrossed with multi-lane roads and flyovers.

At least another 25,000 acres of land will have been added to the PCMC jurisdiction by2025, and this will eventually result in the addition of at least 2 million new homes. These homes will cater to every social stratum of property buyers, from the lower to the high-income segments.

HORIZONTAL AND VERTICAL EXPANSION – CREATING A SPECTACULAR SKYLINE

There will be tremendous – yet controlled – horizontal real estate growth in Pimpri Chinchwad over the next decade. Most spaces allocated for residential use will have been utilized for that purpose. But this will not result in an urban jungle, since the PCMC planning blueprint will enforce the maintenance of vast green spaces at all stages of development.

punawale_pharande

By 2025, almost all residential areas in PCMC will have become self-sufficient real estate developments. The PCNTDA (Pimpri Chinchwad New Town Development Authority) has charted a regulated, progressive and environment-friendly course for real estate development in PCMC, and I expect that integrated townships will have become the default configuration.

In fact, the addition of 25,000 acres will not suffice for this region’s real estate development over the next decade. This is because the PCMC will have to accommodate a massive demand for housing. The population growth in PCMC over the last 25 years has been almost ten-fold (from 200,000 to 2 million), and it will cross 50 lakhs (5 million) by 2035.

On the one hand, there will be a huge requirement for homes from the rapidly growing manufacturing sectors of Pimpri-Chinchwad and the Chakan-Talegaon belt. Chakan itself, though a burgeoning industrial hub, has little to offer by ways of residential facilities. Areas like Moshi, Ravet and Punavale, which are booming today, will have become fully developed and will cater to most of the housing demand.

There will also be massive spill-over demand from Pune City, which will have reached complete saturation point in the next 10-15 years. At the same time, one must also factor in the ever-increasing migrant population from all over the country, attracted as much by PCMC’s excellent education institutions as by the varied career opportunities.

puneville3

This means that PCMC will also grow vertically over the next ten years. More land will have to come within the purview of planned development, and building heights will need to increase from the currently permitted 70 metres – approximately 22 floors plus parking – to 100 metres or more. FSI, which still currently stagnates at 1, will need to be raised to at least 2, or even 2.5.

This means that over the next decade and a half, PCMC will be a skyscraper city on the lines of Gurgaon.

WORLD-CLASS INFRASTRUCTURE

In most cities, such growth would mean serious infrastructure challenges. We have already seen what happens in a city like Mumbai, where skyscrapers are being built without sufficient parking, connectivity and municipal amenities to support them. However, thanks to the master plan that PCMC will always adhere to, the necessary infrastructure will precede the building of high-rises.

I firmly believe that in the next 20 years, the Pimpri Chinchwad Municipal Corporation will serve as a national and even international benchmark for planned, scientific vertical real estate growth.

An essential prerequisite to support this massive growth is an advanced public transport system. With an eye on this future requirement, PCMC has adopted a model similar to Ahmedabad’s Janmarg – a scientifically designed BRT-based public transport system spanning 130 km across 14 routes in PCMC. This system involves 4-lane wide, exclusive roads with grade separators that will reduce the dependence on private transport in favour of more efficient public transport.

This, in turn, will result in smooth traffic flow, less road blocks, radically lower pollution levels and a healthier, energy-conserving environment. To ensure that there are no hitches in the development of this lifeline, the PCMC has established an Urban Transport Fund for its funding.

Another requirement for efficient transport is more connecting roadways. A Ring Road is already on the drawing boards, which will create a hub-and-spoke road network, which will help sustain the enormous increase in vehicular traffic that industrial and residential growth will generate.

However, the Ring Road alone may not suffice to cater to the public transport needs that will emerge over the next two decades. I personally feel that an elevated skybus or monorail network or even an underground rail network will be called for.

A WORLD-CLASS GREEN CITY

PCMC has already spearheaded sustainable real estate development in the region. Green development is the future of real estate all over the world, and many of the bigger residential townships and commercial complexes in the PCMC have adopted the ‘green development’ mantra. Over the next ten years, we will see more and more of developers here taking sustainable real estate development seriously and launching Green Homes.

The Pimpri Chinchwad Municipal Corporation is taking its mission to provide cleaner, greener homes to its citizens very seriously. As of today, there are around 60 registered green buildings completed or under construction in the PCMC. The new PCNTDA building itself is a resounding statement to how important sustainable development has become to the city.

However, this is obviously not enough when we look into how PCMC should look by 2025. In order to see it emerge as a world-class Green City of the future, there needs to be more enthusiasm within the region about the benefits of green homes and workplaces. We need to see more determination by the PCMC to encourage and promote developers who are taking the Green cause seriously.

Permissions for green buildings must be fast-tracked and be given preferential status. Everything that happens in a mighty and progressive municipality like the PCMC should be a benchmark for other regions to follow. The PCMC must be the most determined of all the regions to promote and develop green real estate, so that the PCMC is the clear leader in sustainability by 2025.

INTERNATIONAL CONVENTION CENTRE -THE ULTIMATE GAME-CHANGER

I must also mention  the new 200-acre International Convention Centre at Moshi, which will be fully developed and operational by 2025. By this time, the Convention Centre will be attracting a massive amount of tourism, hospitality and retail development, which will turn PCMC into India’s most thriving urban destination. Global hotel chains will have redefined the hospitality sector, and the shopping centres will be populated by marquee retail brands.

In fact, the next decade will see PCMC being catapulted into the international Big League, giving it a distinct global identity in its own right.

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.

Infrastructure: The Key Real Estate Investment Criterion

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.

punawale bridge

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.

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.

Infra

 

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 PharandeAnil 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.