Residential Property Prices High In Pune And Mumbai

There is an emerging consensus that Indian home buyers are mostly end users, looking at new properties in upcoming locations. They are comfortable with leverage and primarily interested in mid-income housing.

End-user demand is higher in Mumbai, Hyderabad and Bangalore, while investor demand is higher in Ahmedabad and Pune. The perception of home prices being high is prevalent mostly in Mumbai and Pune.

Read the rest of the article in the Financial Chronicle, There is a buzz out here.

Indiareit Fund To Invest In Pune Projects

Domestic real estate-specific private equity funds have started raising money after a hiatus as developers are finding it difficult to tap the capital markets through initial public offerings.

Indiareit, a real estate private equity fund promoted by Ajay Piramal group, is raising Rs 700 crore in the domestic market. The fund is looking at projects in major cities such as Mumbai, Bangalore and Pune and the investments would be made in other developers’ projects and not in the company’s real estate firm.

Read the rest of the article from DNA, Realty private equities start raising money again.

RBI Expected To Hike Rates, CRR

The Reserve Bank of India will announce its annual monetary policy on April 20, 2010. In an exclusive interview with CNBC-TV18, Indranil Sengupta, Chief Economist, DSP Merrill Lynch, speaks about his expectation from the monetary policy.

As Indranil Sengupta said on CNBC-TV18, “We are looking at the RBI hiking rates and the CRR by 25 basis points on Tuesday and also tightening provisioning requirements on bank lending to real estate norms.”

Read the article in MoneyControl, Expect RBI to hike rates, CRR by 25 bps on April 20: DSP ML.

Pharande Spaces Launches Pune Property Blog

PCMC And Pradhikaran Real Estate Comes In Sharp Focus

PUNE, April 15, 2010: Pharande Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India, has announced the launch of an exclusive thought leadership blog on this burgeoning real estate investment corridor.

“We have launched www.punepropertyblog.com in an effort to increase awareness about the immense real estate investment potential in the Pimpri Chinchwad Municipal Corporation. In areas such as Pradhikaran, properties are now in high demand by those who are seeking the best deals on the Pune property market,” says Anil Pharande, President of CREDAI PCMC and Chairman of Pharande Spaces. “There is no better time than the present to make in-depth information available to investors and self-use buyers who have set their sights on this promising new growth area.”

“The Pimpri Chinchwad New Township Development Authority (PCNTDA), popularly known as Pradhikaran, has been a major catalyst in the planned development of Pune’s burgeoning PCMC area,” states Avinash Gokhale, Director – Marketing & Corporate Planning, Pharande Spaces. “This development authority has transformed a once exclusively industrial zone into one of the hottest destinations for those buying residential property in Pune – and indeed in the country. We are confident that www.punepropertyblog.com will serve as an immensely useful resource to both investors and self-use buyers.”

Considering the relative newness of Pradhikaran on Pune’s real estate investment landscape, the information so far available on the internet is sketchy and conflicting. Anil Pharande is confident that www.punepropertyblog.com will go a long way in setting the record straight, and in helping those looking at real estate investment properties in Pune to make more informed decisions.

About Pharande Spaces:

Pharande Spaces are amongst the most dynamic construction companies in the Pradhikaran area of Pune, with several landmark integrated township projects (including the award-winning Culture Crest) to their credit. Recent launches which have attracted widespread attention are Woodsville and, in a joint venture with The Rama Group, Celestial City.

Website: http://www.pharandespaces.com

Email: pharandespaces@gmail.com

Address: Pharande Spaces, Sneh Leela Chambers 2nd Floor, 1237, Apte Road, Shivajinagar, Pune-411004.India.

Phone: +9109881128024, 098817 45862

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Ravet: PCNTDA Delivers The Ultimate Real Estate Investment Destination

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With many tempting locations featuring properties for sale in Pune, what does it take to make a new one stand out? Aundh, Wakad, Baner, Pimple Nilakh, Pimple Saudagar and similar areas have had their heyday.

Now, it is the turn of Ravet, which lies on the North-West side of Pimpri Chinchwad Municipal Corporation and Pune. This location is set to become the new paradigm of investment property in Pune. Various significant real estate market drivers have combined to make Ravet the most promising destinations for Pune residential property.

Superior Location

With its development masterminded by the Pradhikaran-Pimpri Chinchwad New Township Development Authority (PCNTDA), Ravet enjoys the benefit of an extremely strategic location on the Pimpri Chinchwad map. It is, in fact, the first town that appears on leaving the Mumbai-Pune Expressway.

This has resulted in it becoming known as the Gateway to Pune; but that is not all there is to it. Ravet is a junction of the old NH4, the Katraj-Dehu Road bypass and the Mumbai-Pune Expressway and is placed advantageously close to the Hinjewadi IT hub and Pimpri-Chinchwad industrial belt.

The residential property investment potential at Ravet is further enhanced by the fact that J.N.N.U.R.M has begun construction of a 45-metre, grade-separated, non-signaled four-lane BRT (Bus Rapid Transport) road at this point. This road, with 40% of the work already completed, will ensure that key area such as Aundh, Pimpri, Chinchwad, Chakan and Talegaon are in easy access from Ravet.

Developer Activity Picking Up

Pharande Spaces and the Rama Group have joined hands at Ravet in launching an integrated residential township called Celestial City. In Pune, township properties are definitely the lifestyle wave of the future. This integrated township, spread over 2.5 million square feet, features futuristic facilities aimed at making it entirely self-sufficient and is going to be developed in three phases.

Since the highest demand in Pune is currently for affordable housing, the first phase targets the middle-income group with 2/3BHK flats ranging in size from 800 to 1200 square feet. These flats are currently priced between Rs. 24 to 34 lakh at the initial offering phase. Taking a cue from this pioneering project, other developers have also acquired land in Ravet, although their projects are yet to be announced.

The Trappings Of A Pune Real Estate Legend

While Ravet’s accessibility is certainly one of its biggest real estate market drivers, it also has a number of very important establishments in its immediate vicinity. These establishments will ensure that any township properties in this area will thrive.

Among them are the famous Aditya Birla Hospital, industrial giants such as the Bajaj Auto manufacturing plant, SKF and Telco, as well as important education establishments like the Indira Institute of Business Management, D.Y. Patil College and Mercedes Benz School.

Of course, the fact that Ravet is so close to the Hinjewadi IT hub is a major factor in terms of real estate investment potential. Ravet, with its upcoming integrated township, will now offer affordable residential property options for software employees from this software hub, as well as to those from the Talegaon MIDC and Chakan MIDC.

As of now, property rates at Ravet are still extremely rational. Rates at township properties tend to be slightly higher owing to the fact that they provide their own infrastructure. Because of this, the appreciation potential for properties in such townships is also much higher than in other projects.

Anil Pharande is President of CREDAI PCMC and Chairman of Pharande Spaces, a leading construction and development firm operating in the PCMC area of Pune, India.

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What Equity Investors Can Learn From Real-Estate Investing

A very interesting article on Moneylife discusses what equity investors can learn from real-estate investing. Here are some excerpts for real estate investors in Pune:

What is it that makes us comfortable with real estate and skeptical about financial assets? One, you can touch and feel land but not your part-ownership of a company. Two, land is not traded every microsecond, like financial assets. We are forced to be patient with real estate and forced to be impatient with financial assets. Long-term investors in equity keep checking stock prices every day! They never venture to go out and check the price of the flat they bought or of the parcel of land they acquired on the fringes of some city…

While buying land, investors do far more homework. Since it is a large chunk of money for a single deal, they make their own enquiries and then take a decision by themselves. With regard to financial assets, they can buy a tradable security for a few hundred rupees. And, they do not understand what determines stock prices, so they tend to go along with either a trusted financial advisor…

In real estate, options are available to buy land or a flat or an office or a warehouse, etc. You can buy an asset yielding revenues of 6% and above. In stocks, the yields are far lower. As regards appreciation, you will perhaps get the same returns over a decade or two; but real estate may appear the surer bet.

Commercial Property Booms Again

The commercial property market is finally on an upswing, according to an article in ET Real Estate. Here are some excerpts:

The spell cast by the global meltdown in 2008-09 is finally wearing off, as both office and retail space are back in demand. However, most of the development in 2010 is expected to happen in tier-I cities of NCR, Mumbai, Bangalore and Chennai, thanks to a new generation of companies that are considering offshoring for the first time in these destinations.

According to global real-estate consultant, Jones Lang LaSalle Meghraj (JLLM) about 60.9 million square feet (sq ft) of office space is expected to become operational in seven Indian cities — including NCR, Mumbai, Pune, Chennai, Kolkata, Bangalore and Hyderabad — during 2010. The tier-I cities of NCR, Mumbai, Bangalore and Chennai are expected to contribute around 74% to this supply.

PCNTDA: The Real Estate Catalyst For Pimpri Chinchwad

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Pradhikaran is now a fertile Pune real estate Mecca

The Pimpri Chinchwad New Township Development Authority (PCNTDA), popularly known as Pradhikaran, has been a major catalyst in the planned development of Pune’s burgeoning PCMC area, transforming this once exclusively industrial zone into one of the hottest destinations for those buying property in Pune – and indeed in the country.

Over the last three decades several thousand acres of land have been acquired, developed, zoned, brought into the jurisdiction of the Pimpri Chinchwad Municipal Corporation (PCMC) and PCNTDA and made available for residential and commercial purposes. The result has bee a paradigm shift in how the real estate market sees properties for sale in Pune. It can safely be stated that, in terms of the Pune property market, the Pimpri Chinchwad map will never look the same again.

Under the leadership of capable and committed IAS officers, the development of this fertile Pune real estate Mecca spans the entire gamut of activities. These include multi–lanes roads (including the Spine Road), strategically located fly-overs, public parks and urban forestation, residential zones including MIG and LIG Housing on a public private partnership basis, ample potable water supply and a comprehensive drainage network.

Simultaneously, other service sectors have also grown rapidly, particularly schools and colleges. There are now over 25 colleges in Pimpri Chinchwad, offering graduate and post-graduate education in virtually every discipline – healthcare, retail, entertainment, banking and financial services and public transport.

The International Convention Center

These developments have attracted some of the world’s largest companies from the automobile, IT and engineering sectors. It will also become the home of one of India’s largest International Convention Centers (on a 200-acre plot at Moshi, just off the Pune-Nashik Highway.) The governing authorities’ vision for the ICC includes the intention of holding the international auto exhibition that will take place in India in 2012 there. Accordingly, a hall admeasuring 100,000 square feet is being developed – this hall will equal (if not rival) similar exhibition hubs in Munich, Shanghai and other major metros around the world.

Cutting-edge residential complexes

Leading builder-developers from the Pune property market have been quick to spot the opportunity to create ultra-modern residential complexes in this region. These complexes are being designed and executed to meet the lifestyle expectations of the cultured and cosmopolitan middle class. Another market driver is the fact that Pimpri Chinchwad now offers diverse career and business opportunities.

Woodsville, the latest project by Pharande Spaces, is a prime example of the integrated town concept increasingly coming into vogue. Situated just diagonally across the ICC, Woodsville offers a wide choice of spacious two and three bedroom apartments and an array of amenities: shopping mall, multiplex, club and sports complex, school, hospital, hotel and wedding reception hall. Profuse tree plantation, play parks and podium lawns create a serene, healthy environment.

Avinash Gokhale is Director – Marketing & Corporate Planning, Pharande Spaces – a leading construction and development firm operating in the PCMC area of Pune, India.