GST Implications On Real Estate

– Anil Pharande, Chairman – Pharande Spaces

The Goods and Services Tax (GST), is a kind of a comprehensive indirect tax on sale, manufacture and consumption of different kinds of goods and services throughout India, with all other Central and State taxes intended to be subsumed under it. If this happens, it has far-reaching implications, including on real estate.

Taxation and real estate industry

If we take a look at the real estate industry in India today, we find that there have been major tax changes in the last few years. However, these taxes are not uniform all over the country – different practices and regulations are followed in different states in India. It was the 46th Amendment to the Constitution that brought massive changes towards taxation in the real estate sector. Later in the following years, special powers were given to the State Government for implementing Value-Added Tax (VAT) on some specific kinds of transactions.

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For land, property and other kinds of work contracts, different kinds of taxes are levied by the State Government and the Central Government. The transactions are mainly categorized in three parts – value of services, value of goods and materials and value of land. VAT is applied by the State Government on the goods portion, while value of services is taxed by the Central Government. However, other than stamp duty, there is no clear tax on the transactions regarding value of land. This situation leads to confusion and can result in dual taxation. Compliance and implementation of such taxes also get difficult.

The real estate industry has justifiably been feeling jittery with such confusing tax implantations and calculations. For one real estate transaction, multiple taxes need to be paid and this has a negative effect on the industry. The industry’s demand to bring GST on board is primarily to get a clear and transparent taxation rule for the real estate sector in India.

Expected GST effects on the real estate industry in India

The implementation of GST can prove to be a significant step in reforming indirect taxation in India. Chances of double taxation would be diminished, as some of the Central and State Government taxes will be amalgamated into one tax. This will ease the process of taxation considerably, making its enforcement and administration easier and simpler.

Talking about the real estate industry in this context, there are many things which have to be known and understood. In the current situation, a builder or a real estate developer incurs various kinds of expenses during the construction phase of a project. Different kinds of taxes are involved with these expenses, such as VAT/CST, customs duties, service tax, excise duty and so on. Majority of these taxes are expenses that are included in the system. This is because they are not creditable to the developer or to the end-customer. These non-creditable expenses lead to tax inefficiency, which is not desirable.

One positive impact that might result from GST is doing away of restrictions on credit utilization. This will definitely help in strengthening the credit chain in the entire system. If property developers and builders can properly manage this aspect, they will see some profit.

It is expected that the proposed GST structure will have a progressive and streamlined approach. The tax compliance rules should not have any serious impact on real estate builders and developers. In present conditions, builders running projects in different states have to comply with State-specific VAT laws, as well as other kinds of service taxes. Bringing in GST will therefore not bring any additional compliance burden on real estate builders in the country.

Issues regarding GST which affect real estate builders

There are a few clarifications that might be sought for GST taxation by real estate developers. For instance, the definition of a real estate developer varies from one state to another in India. The composition scheme varies according to State, in which the VAT rates come between 1-5%. In some States, there are differences between the terms real estate contractors and real estate developers. It has to be understood what will the GST implications are if the terms have different meanings.

There might be some confusion regarding GST implementations on residential property, as well. In the present scenario, there is no service tax applicable on renting immovable property, particularly for residential purposes. But service tax and VAT is implemented on the construction work. The question that arises is if the proposed GST will offer differential tax for residential properties.

As of now, it does not look like completed residential projects will be affected by GST, as buyers into completed projects have already paid statutory charges such as stamp duty and registration charges on the transaction. The segments to watch on the GST front are under-construction flats and rental flats, which are expected to come under the ambit of GST. GST will apply to the materials that a developer procures for building a residential project, so there is a direct correlation to the overall cost of construction.

Much depends on what rate of GST will finally be confirmed. If it is more than the existing cumulative taxes currently in force, it means that the overall cost to consumers of buying an under-construction flat will increase along with the added cost of stamp duty and registration. At the same time, developers have to keep an eye on costing, as price competitiveness is very important in the current real estate market scenario.

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.

The Value Proposition Of Large Vs. Small Flats In Pune

Anil-Pharande

 

 

Anil Pharande

Over the last couple of years, I have been observing with concern the decreasing size of flats on the Pune real estate market. Of course, it is the demand for smaller flats that is driving this kind of supply.

With housing prices in the Pune Municipal Corporation rising relentlessly, the ‘biggest’ opportunity that developers perceive is in smaller flats that get sold in the shortest possible time. This kind of supply is aimed at first-time home buyers who either have limited budgets or low financial confidence.

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Smaller Flats – Pricing Trap

Though these are supposed to be ‘affordable homes’, the pricing of these units is actually on the higher side. They sell because the prices are still lower than those of larger flats, but the buyers are actually paying an excessive unit cost.

The reason for this disparity is that the ‘pigeon holes’ housing model itself has some inherent flaws built into it. To begin with, the share of common area that needs to allocated in a project that consists of only of small-sized homes means that the project loses in terms of overall efficiency and sale-able area. This results in lower revenue potential, so developers bump up their prices to compensate.

Secondly, the cost of construction depends on the quantity of raw materials being used. When a developer is building a project which comprises exclusively of small units, his development costs actually go up because every unit needs to be provided with separate fittings, appliances and finishes.

As a result, he will increase his prices to make up for the loss in profitability.

Home buyers should be aware that the converse is equally true. In a project with larger units, developers save on costs because of more efficient common space utilization and lower consumption of fittings, appliances and finishes for individual units.

Better Common Amenities

This is why a 1 BHK is often only 30-35% less expensive than a 2 BHK. The bottom line is that by opting for larger flats, property buyers are getting more value for their money.

Also, projects comprising of larger flats tend to have better common amenities, which the developer can maximize the overall livability and therefore attractiveness of the project rather than needing to focus on making as many units as possible within the available space.

The obvious question that follows is – where can middle class home buyers from Pune find larger flats that fall within their budgets? The answer is – in the developing (rather than expensive over-developed) parts of the city.

For example, West Pune is a corridor where hundreds of property buyers are still able to find true value for their money.

Property rates in many of the the areas of PCMC are lower than the inner localitions of the Pune Municipal Corporation, which means that buyers can get the benefits of larger flats with better amenities there.

With the vastly improved road connectivity, the newer areas of West Pune close to Hinjewadi and the MIDC are now becoming the destinations most favoured by home buyers working in these employment catchments.

About The Author:

Anil Pharande 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, an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a mixed bag of products catering especially to the 42 sectors of Pradhikaran. Puneville in West Pune’s Punawale is the latest integrated township project by Pharande Spaces

 

A Call For Action For The Pimpri Chinchwad Municipal Corporation

Anil-Pharande

 

 

Anil Pharande is Vice President of CREDAI Pune Metro and Chairman of Pharande  Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

The Pimpri Chinchwad Municipal Corporation was honoured by by presence of Maharashtra Chief Minister Shri Prithviraj Chavan, Deputy Chief Minister Shri Ajit Pawar and NCP President Shri Sharad Pawar. These distinguished dignitaries had very generously agreed to inaugurate several key infrastructure projects at PCMC:

  • The new PCNTDA building near Akurdi Railway station
  • The Traffic Park at Bhosari
  • The flyover near Spine Road
  • PCMC’s very own Nala Park
  • The Science Park at Auto Cluster

We, the architects of India’s most progressive planned city, were truly inspired by the kind words of praise, encouragement and hope that these honoured guests offered at the inauguration ceremonies. It is clear that the Government has recognized Pimpri-Chinchwad as the City of the Future, and that the city can depend on the fullest support as it continues to progress.

Nevertheless, there are reasons to be cautious in all this optimism. It is true that the careful and futuristic engineering of development at PCMC by the PCNTDA has become a national and even international benchmark for town planning. However, there have been various challenges along this road to progress. We need to take these hurdles into consideration if the Pimpri Chinchwad Municipal Corporation is to fulfill its maximum potential as the City of the future.

Considering the pace at which real estate development has been taking place, certain lacunae in adhering to the PCNTDA’s master plan were unavoidable. One of the most glaring examples of this was the emergence of unauthorized structures in various pockets of the PCMC.

Thankfully, this issue is being dealt with firmly. The authorities have embarked on a massive drive to deal with such structures, and we are confident that all illegal constructions will be erased from the landscape by the end of 2013. However, we cannot deny that these are damage control measures which would not have been necessary if the damage had never been allowed to occur in the first place.

More Road Connectivity

Another area of concern is lack of adequate road connectivity between certain key areas of the PCMC and areas such as Talegaon. Because of the massive potential for industrial and residential development in and around these areas, they have seen most of the road construction initiatives. In the process, road connectivity from these locations to some of the most important growth areas of PCMC has been largely ignored.

Paradoxically, the areas referred to as Phase 2 in the PCMC development plan hold the highest potential for real estate growth. Thanks to the availability of large land parcels at relatively lower prices, residential and commercial realty development has picking up rapidly in areas such as Moshi. In the meantime, Moshi has become a hotbed for property investments because of the International Convention Centre being jointly developed by the Maratha Chamber of Commerce and the PCMC.

Despite this, there is still no sufficient road connectivity between Phase 2 and the larger industrial hubs. This is going to prove to be a huge stumbling-block for the overall growth of the region. The lack of a suitable road network means that people living in areas like Moshi face difficulties in reaching their workplaces in these employment clusters. This issue must be addressed on a priority basis. A city like PCMC must do everything in its power to ensure that its growth pockets are not isolated from each other.

PCMC Needs To Expand

Yet another issue is that the population within the Pimpri Chinchwad Municipal Corporation is growing at an annual rate of 73%. Such a rate of growth makes it necessary to provide more spaces for development. Unfortunately, there have been limitations put on the city’s potential for geographic expansion by Red Zones (non-development areas).

It is imperative that more of the region’s outlying villages be included in the urbanization plan. There are enough examples in India of what happens when a city does not expand geographically in tandem with its population growth. Such a situation must not be allowed to develop in the PCMC. Also, PCMC needs to be able to accommodate the rapid growth in population in terms of providing more educational institutions, shopping complexes, healthcare establishments and entertainment zones.

Encourage Green Development

Finally, I would like to touch on PCMC’s major thrust towards sustainable real estate development. It is no secret that green development is the future of real estate all over the world. In fact, many of the bigger residential townships and commercial complexes in the PCMC have already adopted the ‘green development’ mantra. The new PCNTDA building itself is a resounding statement to how important sustainable development has become to the city.

Nevertheless, there is still a noticeable lack of enthusiasm within the region about the benefits of green homes and workplaces. One of the reasons for this is lack of awareness. Many of the region’s residential property developers and buyers have not been attuned to the advantages of environmentally sustainable properties. I urge the State Government to join hands with the PCMC to bring about greater awareness and eventual adoption of this vitally important principle.

I also strongly advocate better incentives for developers and buyers of green homes in the PCMC. The use of non-conventional energy sources and sustainable waste water management does not only have a positive impact on the environment and on the overall quality of life. Such measures reduce the strain on municipal resources, resulting in significant revenue savings. Unless the benefits of these savings are passed back on to the developers and buyers of sustainable properties, we cannot expect a more wide-spread adoption of the ‘green’ mantra in PCMC.

We gratefully acknowledge the importance that the visiting dignitaries have given to the City of the Future by gracing it with their presence. At the same time, we sincerely request them to take heed of PCMC’s most urgent requirements.

PCMC gets defence land for widening Aundh Road

(Times of India, Sept. 10, 2011)

pune PropertyPUNE: The work of widening the Aundh-Ravet Road near Aundh commenced on Friday after a gap of nearly a year. The Pimpri Chinchwad Municipal Corporation has begun the work as it has received written permission from the defence authorities. The road-widening work had been stalled as the defence authorities had earlier objected to the work.

Municipal commissioner Ashish Sharma said the defence authorities on Thursday granted the permission to the PCMC. He said the PCMC had earlier paid Rs 18 crore to the defence authorities for the land.

The widening work will be from the Aundh Chest Hospital up to Y junction. The work will reduce traffic congestion on the narrow road near the hospital, he added. The widening work on the 14.4-km Aundh-Ravet Road is being done for developing a BRT corridor. For early completion of the work, the road has been divided into seven sections for which contracts have been given. The work on widening the four-km stretch from Rajiv Gandhi bridge in Aundh to Sai chowk in New Sangvi could not be completed due to the delay in getting the defence land.

The narrow stretch of the road is a bottleneck and witnesses daily traffic snarls during the peak morning and evening hours and causes inconvenience to hundreds of motorists.

Dilip Kudale, coordinator, engineering department, PCMC, said, the road is being widened from 15 to 45 metres. The PCMC will complete the work in the next six months.

http://timesofindia.indiatimes.com/city/pune/PCMC-gets-defence-land-for-widening-Aundh-Road/articleshow/9930496.cms

Ready Possession Versus Under-Construction Property Purchase

It is human nature to prefer a finished product. One can apply this truth to various areas in life. We lack the faith to trust that something in the process may be of greater benefit than something we can see in the full glory of completion. This fact is also the basis of many counter-productive real estate purchases.

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The ‘Finished Property Product’ Syndrome

It is certainly tempting to purchase a residential property that is in a state of total completion. All that needs to be done is the signing of a cheque. The thought of investing in a property that is still under construction clashes with our need for instant gratification.

READY POSSESSION

The above term is a cunningly devised advertising tool that appeals to something we all share – the desire to possess. Instantly. No waiting, no effort involved, just sign the dotted line and show off your acquisition to envious friends and associates the very next day.

By giving in to it, we place ourselves at the mercy of the builder. We are forced to agree with his idea of aesthetics, colour schemes, brand of fittings, layout and his idea of a fair purchase price. Buying a ‘ready possession’ property may make sense if it is required for immediate occupancy, but it is rarely a wise move from the point of view of investment.

UNDER CONSTRUCTION

This term appears to be a less promising one. It implies a state of incompleteness, which translates into ‘No Instant Gratification’. The desire to ‘possess’ will have to be toned down. You will feel less inclined to invite your friends to view an untidy site strewn with construction rubble… where is the glamour?

This is a classic example of tunnel vision. We fail to see the forest for the trees and do not take the long view. The inherent benefits of investing in an ‘under construction’ property far outweigh those of ‘ready possession’. Let’s look at some of them:

  • LOWER RATES

Every builder knows that a home buyer has to exercise restraint and patience while investing in an incomplete property. This knowledge reflects in the property rates the builder quotes. ‘Under construction’ properties cost significantly less than finished ones.

  • THE POWER OF CHOICE

With a little vision and imagination, you can see precisely which flat will best suit your needs. In an ‘under construction’ scheme, you will have lots to choose from. Direction of sunlight, best view, ‘Vaastu’ parameters, general ambience and ‘feel’… these are factors you can choose for yourself.

  • FLEXIBLE PAYMENT SCHEDULES

A property under development is not an immediately marketable asset. Builders can only hope to dictate inflexible payment schedules in the case of ‘ready possession’ properties. On the other hand, they are invariably open to negotiation at the ‘under construction’ phase. In other words, you can often ask for payment schedule that best suit your needs.

  • SCOPE FOR MODIFICATION AND CUSTOMIZING

There isn’t much you can do to change the physical characteristics of a finished flat or shop. The walls are in place, the choice of windows and bathroom fittings has already been made, and no space provisions for that extra Sintex tank may exist. In an ‘under construction’ flat, you can give specific instructions for modification without incurring extra expenses.

  • INVESTMENT BENEFITS

Apart from the lower property rates, easier payment terms allow you to plan a more effective investment strategy. Also, the ability to choose specifications helps you to value-add to the property. This translates into better returns on completion.

  • PLANNED INTERIOR LAYOUT

You can optimize space and layout for future convenience. For example, lofts and storage space can be included at this stage.

There will still be many circumstances that warrant the purchase a ‘readymade’ property, but consider the above pros and cons before doing so.

Pharande Spaces is the most established and respected construction company in Pradhikaran, the potential-laden boom sector of Pune’s PCMC area. Specialists in quality residential projects, Pharande Spaces also have township properties in the choicest parts of Pimpri-Chinchwad Business District. Two ongoing projects that are generating a huge amount of interest are the integrated townships Woodsville at Moshi and Celestial City at Ravet.

The Advantages Of Township Properties At Ravet

Pune real estate is all about new growth. Unlike neighbouring island city ofMumbai, Pune is not hemmed in geographically, and such growth is indeed possible. Pune’s urban growth is steadily advancing into its peripheral areas. Meanwhile, Pune’s sister city ofPimpri Chinchwadhas been seeing its own real estate boom under the auspices of the PCNTDA (Pimpri Chinchwad New Township Development Authority).

One of the most exciting new Pune real estate destinations for homebuyers is Ravet, which is situated on the North-West side of Pimpri Chinchwad. Ravet is an area that aptly showcases how seriously the PCNTDA is taking planned urban development.

celestial-city-300x204

As a residential property purchase as well as property investment destination, Ravet has several advantages in terms of location and infrastructure. Also called the Gateway to Pune, Ravet is the first area to greet those who come in from the Mumbai-Pune Expressway. In fact, Ravet is also where the old NH4, the Katraj-Dehu Road bypass and the Mumbai-Pune Expressway meet. However, this incredible accessibility from the financial capital is not the only factor that makes Ravet so important from a real estate point of view.

Two of the primary demand drivers for residential real estate in Pimpri-Chinchwad are its industrial clusters and the Hinjewadi IT Park. Both of these generate a massive amount of employment at all levels. Ravet is located at an equal distance from both these workforce hubs. Also, it has excellent educational institutions in the immediate vicinity – including the prestigious Mercedes Benz School, the Indira Institute of Business Management and the D.Y. Patil College.

Ravet is also where the most prestigious residential township properties in the Pune-PCMC belt are now taking place. Township properties are becoming increasingly popular because they have re-introduced the concept of community-based neighbourhoods. Healthcare, educational facilities and shopping are all readily available in these projects. In sharp contrast, homes in smaller projects have far less to offer.

Moreover, the investment value of integrated township properties increases much faster than that of smaller projects. The appreciation is higher because these follow premeditated development plans that encompass open spaces, communal amenities and common areas. This means the overall value of the location does not decrease because of uncontrolled developments and compromised infrastructure.

In fact, since integrated townships have their own infrastructure, they are not overly dependent the local municipal corporation. They have their own sewage management, water supply and overall maintenance facilities as well as their own security, which assures homeowners in integrated township projects of much higher levels of safety for themselves, their families and possessions.

In Ravet, integrated townships such as Celestial City by Pharande Spaces are conceived and executed on the basis of a thoroughly researched master plan. This means that construction parameters are completely standardized – unlike in unplanned residential localities, where divergent construction ideologies and standards often prevail. The standardization of construction parameters in integrated townships allows for uniform appreciation of property values.

Posted by: K. D. Nagarkar

PCMC 24×7 Water Supply Scheme Gets Green Signal

(Source: TOI)

PUNE: The path has been cleared for the 24×7 water supply pilot project in Pimpri Chinchwad, to be implemented by the municipal corporation in association with a French company. The civic standing committee on Tuesday approved a proposal for a revised Memorandum of Understanding (MoU) with the company.

The project will be implemented in one area of the township. Pravin Ladkat, executive engineer, water supply department, PCMC said, “The pilot project will be implemented in a zone with 3,000 to 5,000 water connections. The pilot zone is yet to be identified. The project will take nine months for completion.” He said, “The PCMC had signed a MoU with the French company Suez Environment in October 2010 to improve the water supply in the township. The project was to be implemented at a cost of Rs 6.3 crore. The proposal was sent to the state government for approval and later to the union government’s Urban Development Department.

It took almost four months to get the department’s approval.” Later, some changes were proposed in the implementation plan. The PCMC will have to spend money on purchasing equipment like leakage detectors, valves and bulk meters. As a result, a new MoU is being signed, officials said. Suman Pawale, chairperson, standing committee, said the panel also approved the short notice resolution to hold weekly bazaars during Diwali to sell goods produced by women Self Help Groups at the Bhakti Shakti chowk and Madhukar Pawale ground in Nigdi.

The committee also approved resolutions for laying water pipelines in the newly developing areas of Punawale village at a cost of Rs 1.11 crore, and laying a main pipeline from the Elevated Storage Reservoir (ESR) in the Elpro compound to improve water supply to Chinchwadgaon and nearby areas at a cost of Rs 74.66 lakh. A resolution to beautify a road divider on the Aundh-Ravet Road from Sai chowk to Dange chowk, at an expenditure of Rs 60 lakh, was also approved. Development projects with a total expenditure of Rs 7.4 crore were approved at the meeting on Tuesday.

http://timesofindia.indiatimes.com/city/pune/PCMCs-24×7-water-supply-scheme-gets-green-signal/articleshow/9462718.cms

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.

http://www.indianexpress.com/news/pcntda-to-generate-houses-on-its-own/818630/0

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

Pimpri-Chinchwad… Moving rapidly into the Fast Lane.

Pune Property

Pimpri-Chinchwad… Moving rapidly into the Fast Lane.
The traffic population in Pimpri-Chinchwad is growing at an exponential rate, largely due to the escalating Industrial growth across the Chakan-Talegaon belt at the periphery of Pimpri-Chinchwad, and the resulting mushrooming residential projects. However, thanks to several initiatives being taken by the Pimpri-Chinchwad Municipal Corporation (PCMC), leveraging the ample availability of land and the existing as well as planned infrastructure development, traffic in Pimpri-Chinchwad and surrounding areas is rapidly moving into the fast lane.

Flyovers

In addition to an impressive network of broad, multi-lane primary and secondary roads, an important measure to de-congest traffic is the flyovers which are being constructed, supplementing those which are already operational.

Bhosari
The 1,400-m Bhosari flyover on the Pune-Nashik highway which connects Pimpri-Chinchwad to Chakan, is scheduled to be completed and opened to traffic by April 15,2011. There are plans to build a parking lot under the flyover in the near future, while a garden will be created where the height of the flyover is less, to prevent encroachments under the structure.

Three  more flyovers will address the issue of lateral traffic perpendicular to the Pune – Mumbai highway, at the Nashik Phata chowk,  at Empire Estate in Chinchwad and at Dange chowk in Chinchwad.

Nashik Phata

Tagged as Triple R flyover, the Nashik Phata flyover is stated to be the first of its kind in Maharashtra that will ‘fly over’ river, road and railways.

The two-tiered flyover linking Pune-Mumbai highway and Pune-Nashik highway

will be 1,100-metres long with 100-foot wide roads .It will span the Pune-Mumbai highway, the Pune-Lonavala railway line, and the Pavana river.

Dange Chowk
The four-lane flyover at Dange chowk in Thergaon on the Aundh-Ravet road will reduce congestion at this busy junction and will enable people coming from Kalewadi side to cross the Dange chowk and go smoothly towards Tathawade and Ravet

Empire Estate
The 1.9 km long flyover, the longest flyover within municipal limits, passes alongside the  Empire Estate complex on the old Pune-Mumbai highway. It will have six lanes, cycle tracks of 2.5 m width on both sides and footpaths.

The flyover will enable commuters from Kalewadi, Wakad and Thergaon to cross the Pavana river, Pimpri-Chinchwad link road, Pune-Lonavala railway tracks and  the old Pune-Mumbai highway and gain easy access to MIDC and the Pune-Nashik Highway.

100 traffic-friendly  chowks and large off-street Parking Lots
It is a sad commentary on the absence of civic sense among a large number of vehicle drivers ,who only heed traffic signals when there is a traffic policeman at the chowk, that merely installing traffic signals is not a complete solution to the traffic problems, However the traffic police have a manpower shortage and  policemen cannot be deployed at every chowk.

Improvement of at least 100 chowks, or crossroads, developing parking lots and tarring of roads will be on the priority list for the Pimpri-Chinchwad Municipal Corporation’s traffic cell in the forthcoming financial year. Announcing these measures, Municipal Commissioner Ashish Sharma affirmed that they will be  carried out in coordination with the traffic police. A provision of Rs 10 crores has been made for the traffic cell in the Municipal Corporation’s draft budget for 2011-12.

Work has already been completed on traffic improvement measures at the KSB chowk (Chinchwad),Bhakti Shakti chowk (Nigdi),Dange chowk (Thergaon)and Sambhajinagar chowk (Akurdi). Moshi chowk ,Sangavi junction,Rakshak chowk and Walhekarwadi junction are some others where measures will be undertaken this year.

Off –street parking
The Pimpri-Chinchwad Municipal Corporation is planning to develop two large parking lots along the Pune -Mumbai highway stretch. The first is a 1.43 hectare facility at the Bhakti-Shakti chowk in Nigadi. The second will come up on an open plot in Pimpri near the Morwadi chowk- Indira Gandhi flyover. Both will include a bus terminus and parking lots, so that people will be able to conveniently park their vehicles here and commute to different parts of PCMC and Pune by bus, thereby reducing traffic congestion.

Similar parking lots will be developed, in phases, in other areas within PCMC limits. The PCMC has also developed parking lots on both sides of the Pune –Mumbai highway. This is only major road in the municipal limits along which there are recognized free parking areas.

This is a good start, but a lot more needs to be done. Designated parking lots along the Telco road, Aundh –Ravet road and others are needed.

BRTS
To address many of the urban transport problems being faced by PCMC currently and those anticipated in the future, a Comprehensive Mobility Plan (CMP) study has been undertaken, which proposes a bus-based rapid transit system( BRTS) spread across 130 km of corridors in Pimpri-Chinchwad.
PCMC has set up an Urban Transport Fund (UTF) to fund the project , to be managed by a SPV wholly owned by PCMC