Buying Investment Property In Hot Markets

Investing in real estate is a time-honoured method of achieving financial success. Throughout the ages, investment property has helped a lot of people make a great deal of money – sometimes quickly, sometimes over the long term. Those who invest for the short term are generally known as property speculators, and they play a dangerous game. Long term property investment is for forward thinkers who have an investment horizon of at least five years.


The objective of a long-term property investor is to buy a property at a low price and sell it at a higher price. To be successful at this, one needs to know what is going to happen in a certain location over the next few years. You will need to invest in a growing location, not an established one. This is especially true if  you are a middle-class person living off a middle-class income. There are two reasons for this.

First of all, properties in established locations cost a lot of money. At the same time, their long-term investment value is lower. The reason for this lies in the nature of the real estate market. The costly (or ‘prime’) areas gained their value over a certain period of time, but what goes up will eventually go down. Real estate gains value because of new infrastructure projects, shopping centres, public transport facilities, etc.

If you look at central locations of Pune such as Bund Garden Road, KoregaonPark, Kothrud, Deccan Gymkhana and Laxmi Road, you will see that nothing more can happen there. These areas are saturated. In many of them, residents are facing a lot of problems because of overcrowding, lack of parking, open spaces, playgrounds for their kids, pollution and traffic clogging. Even with the best of intentions, the city planning authorities cannot do anything to make life better for them – there is simply no space left.

Though the property rates in these areas of Pune are high, they cannot rise further because the future has nothing to offer there. Long-term property investment in Pune means buying real estate in an area while it is on the rise – not when it is in saturation or decline mode. Buying investment property means buying it where people are going, not where they have already been for generations.

A hot property market is one where there are upcoming changes in the infrastructure, and where homebuyers are headed. Infrastructure can include things like major highway construction and shopping and entertainment facilities. Look for areas that have a lot of employment options, because people always want to live close to where they work.

Also keep your eyes open for areas where large corporations are relocating or already exist and have room to expand. When this happens, the real estate market in that area will boom due to demand for housing and small businesses. Business is one of the most reliable drivers for real estate prices.

In terms of the Pune property market, Pimpri Chinchwad has all the above ingredients of a hot property investment destination. This is the reason why more and more Pune developers are now concentrating on projects in this boom area. If you want to know more about this thriving property investment location, you are welcome to contact us to learn more about the various lucrative residential property investment options in Pradhikaran and other areas of Pimpri-Chinchwad  available.

Tips On Buying A Home In Pune

Every Indian dreams of having their very own home, and most people work all their lives to save up enough money to purchase it. In fact, this is the primary driver of the Pune property market, since this city holds to the traditional concept of homeownership as a gauges of security and success. And, of course, a new home is the best gift you can give yourself and your family.

Because of the recent economic crisis, a lot of Pune property buyers have begun thinking twice about purchasing a new home. The major reasons are increased interest rates and the rather unfriendly Pune property rates. While a number of banks are offering to help out families in Pune who want to buy their own home, there are still clouds of doubt that hover above the decision makers.

It is true that buying a home is a huge investment, and that you need to maintain it for a lifetime. For a middle class homebuyer in Pune, buying a residence is literally putting all the chips on the table. Here are some tips that are worth considering before you proceed with buying a property in Pune:

  • Location

Location is perhaps the most important factor to consider, because it will say a lot about your purchase. Do not forget that its location dictates the price of your new home in Pune. For example, a 3 BHK flat in the middle of nowhere will cost you a lot less than a 1 BHK in the middle of the city’s commercial district. Some areas are called prime because of their central location. They are close to the places that we need access to, such as schools, healthcare facilities and shopping centres. These places cost a lot more because they offer all of these.

However, the new concept of township properties has created an entirely new paradigm. The new townships in Pune allows property buyers to avail of all these facilities even if the location is not in the centre of the main city. Some of the best townships in Pune are coming up in the Pimpri Chinchwad area – for instance, Woodsville in Moshi and Celestial City in Ravet, both being developed by Pharande Spaces. These are integrated townships that offer every convenience of modern living in Pune’s flourishing sister city.


  • Price

The cost of your flat in Pune is obviously one of the most important considerations. As already stated, certain properties in Pune cost more simply because they are centrally located within the city. It is significant to note that despite the higher pricing, the homebuyer has to put up with traffic congestion, air pollution, lack of greenery and inadequate parking facilities.

Those who are looking for a reasonably priced flat in Pune will only find it in the further locations. Many of these new areas do still have some greenery and less traffic congestion and pollution. However, in time these areas will also succumb to the hammer of indiscriminate development which has been the hallmark of the Pune real estate market.

Again, Pimpri-Chinchwad township properties offer the perfect alternative. The real estate development in the PCMC area is strictly controlled. This means that infrastructure keeps pace with property development at all times. In other words, these Pune township properties will never be strangled by over-development and traffic snarls. They are the perfect alternative for Pune property buyers who are looking for a clean, green environment to live in – not only for the current generation, but for all generations to come.

  • Security

Security is a major concern in a fast-developing city like Pune. Your choice of location for your new home also reflects on the safety of your family as well as your property. Security is definitely a very important consideration when you purchase a new home. It makes more sense to buy a property in a township project which offers round-the-clock security than in a urban city centre with a high crime rate.

  • Appreciation

While central location is a big driver for property prices, central locations are also the most volatile in terms of price fluctuations. This is because the property market in city centres is more often than not driven by investors rather than genuine end users. On the other hand, there are no other price drivers in a congested, overdeveloped city. Very little can be done to enhance the infrastructure and therefore the lifestyle quotient of property owners.

Though prices stagnate in the city centre for these reasons, property valuations for township properties in developing areas such as Pimpri Chinchwad increase because of the better infrastructure, more wholesome environment and the steady – yet controlled – addition of value-adding projects such as office complexes, malls, schools and hospitals.

While buying a flat in Pune, it makes a whole lot of sense to consider the purchase from all angles. In short, keep in mind what kind of standard of living you wish to enjoy in your lifetime and also pass on to your children.

Posted by: K. D. Nagarkar

PCNTDA to generate houses on its own

(Indian Express, July 17, 2011)

The cancellation of the DB Realty project under the Pimpri-Chinchwad New Town Development Authority (PCNTDA) means a further wait for the families who, by March next year, would have benefited from the 53-hectare project. The Basic Services to Urban Poor (BSUP) PPP model that failed will involve a new tendering process, the resolution for which was initiated in PCNTDA in May. The township, proposed in February 2009, was expected to be completed by March 2012 and was supposed to generate 5,040 homes under BSUP and 2,750 homes for the Middle Income Group (MIG) and High Income Group (HIG).

Suhas Divse, chief executive officer, PCNTDA, said, “The PCNTDA project was supposed to be completed by March 2012. However, citing the delay, the central government cancelled the project and subsequently we scrapped it. An amount of Rs 50 crore which was the deposit along with the bank guarantee amount has been refunded to them. The entire process has cost us loss of low cost houses which, we would have made available to the residents at Rs 1-1.5 lakh, besides time. Now, we will have to initiate the tendering process once again and generate 8,000-10,000 houses on our own. Further, it will take another three years for the township to be ready.”

On Friday, DB Realty Ltd had said that its proposed Rs 400-crore township project in Pune had been cancelled by the PCNTDA, without giving a reason as to why the local body canceled the project. “PCNTDA has refunded the upfront deposit money of Rs 50 crore to the company which will take legal recourse in the matter, terming the cancellation of letter of intent after 22 months as arbitrary and illegal,” DB Realty had told the stock exchanges on Friday.

Dilip Band, Pune divisional commissioner and president, PCNTDA had however said, “The project was cancelled because PCNTDA could not take the allotted money from the central government. The project did not go ahead because of litigation and complaints filed by the local MP and some politicians regarding the tendering process and the manner in which the allotment was done. As there were complaints, no work order was issued to DB Realty’s JV. The project could not be completed in the stipulated time of two years and so the centre cancelled the project.”

The central government had given grants of Rs 150 crore under JNNURM for the project that was to come up in Sector 12 under the category of BSUP.

Tips For Buying Rental Property In Pimpri-Chinchwad

The decision to invest in rental property in Pimpri Chinchwad is an excellent one. Pimpri-Chinchwad, commonly referred to as the PCMC area of Pune, is a rapidly growing real estate market and therefore a important property investment destination.

Remember that your aim is to buy property in Pune which will generate rental income for you. Your objectives are different from those of someone who wants to buy a home to live in. You are not tied to the location yourself, but you still want it to generate a sufficient amount of rental income for you. At the same time, you want a property in Pune which requires as little maintenance and upkeep as possible.


Since you are looking at Pimpri Chinchwad, you have several advantages when it comes to investing in a Pune rental property. The first advantage is that, when compared to central Pune, property prices are much lower. The second advantage is that Pimpri Chinchwad has a few very good integrated township projects which offer excellent amenities and value for money. Integrated townships have much lower maintenance costs and much better maintenance quality than normal properties in Pune, since their upkeep in professional and centralized.

The third advantage of investing in a rental flat in Pimpri Chinchwad is that there is a huge rental demand for residential properties in this area. For instance, Ravet is an extremely strategic location because it is the first town one encounters while leaving the Mumbai-Pune Expressway. Ravet has become famous as the Gateway to Pune. It is in fact a junction of the old NH4, the Katraj-Dehu Road bypass and the Mumbai-Pune Expressway. Also, it is very close to the Hinjewadi IT hub and Pimpri-Chinchwad industrial belt.

This location in Pimpri-Chinchwad has a huge requirement for rental accommodation from the business class. For this reason, township properties in projects such as Celestial City – a joint venture by Pharande Spaces and the Rama Group – are in great demand. Ravet is an excellent Pune property destination for those seeking to invest in a rental flat in the PCMC area

Yet another very lucrative investment destination is Moshi, which is the venue for the upcoming International Convention Centre. This world-class convention centre will become the most important location for the prolific manufacturing sector in PCMC, which boats of a number of global industry giants have their plants. In anticipation of the huge demand for properties in this area, Pharande Spaces launched an ambitious integrated township project called Woodsville in Moshi, which is already selling out rapidly.

Remember that location is one of the most essential elements to consider while purchasing the right rental property. Keep in mind that properties which are strategically located and also have schools, parks, ready access to public transport and shopping facilities in close vicinity will get you the highest rental income. In this respect, investing in a properly located township property is by far your best bet.

Impressed, CM may follow PCNTDA way to plug land scams




Anil Pharande, CMD – Pharande Spaces

(DNA, July 6, 2011)

Pune: The Maharashtra government has decided to use the Pimpri-Chinchwad New Township Development Authority’s (PCNTDA) ‘Shashwat’ programme to digitise all land records in government offices across the state. This will automatically help put an end to land scams and ensure transparency in government records.

The PCNTDA recently launched its touch screen facility to give information about lease deeds, allotment letters and other land records. The authority started the facility under its ‘Shashwat’ programme to digitise all records since its formation in 1972.

PCNTDA chief executive officer Suhas Diwase made a presentation of the ‘Shashwat’ project during his meeting in Pune last week with chief minister (CM) Prithviraj Chavan. The CM was impressed by the system and expressed his desire to start the project at the state level in all municipal corporations as well as government offices to stop corruption and give easy access to general public.

The CM also asked the authority to submit the detailed procedure manual of the project. Speaking to DNA, Diwase said, “As per the CM’s guideline, we are preparing the procedure manual and will submit it to the government soon.”

Diwase added that Pune and Pimpri-Chinchwad municipal corporations, district courts, Pune commissioner’s office and district collector have also approached the authority to provide guidance on introducing the project to digitise land records.

Elaborating on the project, he said, “The touch screen facility has been receiving good public response since it started in May. It has also reduced the number of applications under the Right to Information Act, 2005 (RTI).”

Under the project, 50 lakh documents — mainly land records — have been scanned. To check land records, the citizens have to meet various officials and employees, which is not only time consuming but also affects work at the office. All land records and official information are now made available through touch screen facility at the office.

The user-friendly facility does not require the assistance of any PCNTDA employee. Diwase said he joined the authority in 2008 and, after barely a month, undertook the project. “Very soon, citizens will get prints of any land record in the office itself,” he said.

The project has helped usher transparency in the PCNTDA office in Nigdi. Gone are the heaps of files in a shabby state and in their place is a pleasant office with a corporate touch.

Buying A Flat In An Under-Construction Project At Pimpri-Chinchwad

There are many residential projects coming up in Pune and Pimpri-Chinchwad. While there are ready units available, many buyers are wondering whether to invest in one of the projects still under construction. These buyers and investors are aware of the fact that flats in a project that is still under construction are invariably cheaper than flats in a completed project.

There are two potential advantages to buying a flat in an under-construction project in a fast-growing area like Pimpri-Chinchwad. The first, as already stated, is that an under-construction property will invariably come cheaper than a ready-for-possession property. Because many home buyers in Pune and the PCMC area are in a hurry to move into a purchased home, they wind up paying the premium rates that completed residential projects command.

Pune PropertyThe second reason is related to the investment value of under-construction projects. The fact is that the value of a well-located project by a reputed developer appreciates even if the project is not completed. There is a common misconception that property values do not rise while a project is still under development. In fact, it has been observed in a number of cases that property prices in well-located projects by established developers do appreciate as the projects near the completion phase.

The appreciation potential of an under-construction project is linked directly to the location and the reputation of the developer. If both aspects are favourable, property rates will rise in accordance with the stage in the project’s life-cycle. In other words, it can make a lot of sense for investors and buyers who are not in immediate need of an owned home to invest in an under-construction property by a credible and reputed developer.

The way to judge a developer’s standing on the local real estate market is to investigate his previous record for completing projects. Another way is to have a look at how fast flats in a developer’s projects tend to sell while they are still under construction. In today’s scenario, flats in a complete and reasonably well-constructed project tend to sell regardless of who the developer is. However, the fact that units in a certain developer’s project are selling even before it is completed can tell you a lot about his market standing.

Woodsville, the integrated residential project by Pharande Spaces coming up at Pimpri-Chinchwad, is a prime example of this. This township project with distinguished buildings that feature 1, 2, 2.5 and 3 BHK flats is currently being developed in phases in Pune’s burgeoning sister city. Woodsville has the unique distinction of being the pioneering township project in Pune’s fast-developing area of Moshi, where investor potential is now driven by the upcoming International Convention Centre.

The confidence that the Pune real estate market has displayed in Pharande Spaces, a respected name among developers of green homes, is amply displayed by the sales statistics. Currently, there are only 35 out of the 517 flats left for sale in Phase I at Woodsville, while Phase II is also selling out fast with only 29 out of the total of 141 left for sale. This is a combined function of brand and location value, since Moshi has now been earmarked as one of the hottest Pune real estate investment areas.

Similarly, units in the vicinity of Magarpatta City by reputed developers such as Marvel Realtors are selling fast primarily because of the trust that the market places in such a renowned brand, as well as the value of the location of these projects.

While it is certainly tempting to buy a ready flat for sale in a completed project, one should look at the advantages of investing in an under-construction project. As long as one if dealing with an established brand, there is nothing to lose and everything to gain.

Posted by: K. D. Nagarkar