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.

Pharande Vaarivana Pune

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.

Pharande Vaarivana Pune

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:

Pharande Vaarivana PuneAnil 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.

PMC’s Proposal To Extend Duration Of Lease Period Faces Opposition

(TOI, Nov 7, 2010)
PUNE: The civic body’s proposal to extend the duration of the lease period of civic properties is mired in controversy with civic activists alleging that the Pune Municipal Corporation (PMC) has not prepared a draft for the changes proposed in the policy.
Six years after it became the first civic body in the state to have a land lease policy, the PMC now wants to extend the duration of the lease period from the current 30 years to 99 years. The policy was ratified by the Bombay high court.
The PMC has invited objections and suggestions from citizens to the proposed changes. The suggestions and objections should be sent to the land and property department of the civic body within a fortnight from November 3.
“The PMC has not prepared any draft to seek suggestions and objections on the proposed change. On what basis should citizens register their suggestions and objections?” civic activist Vijay Kumbhar asked. Kumbhar and other activists have approached the municipal commissioner on this matter.
Deputy commissioner (land acquisition) Sudhakar Telang, however, said that the suggestions and objections were sought only to extend the duration of the lease period. “If citizens want to go through the existing policy it is available with the PMC. Suggestions and objections have been invited only on the issue of duration,” said Telang.
At present, the civic land lease policy bans the PMC from selling its properties, but allows it to lease the property for 30 years. The PMC has leased out many of its properties, including open spaces.
Activists allege that most properties have been leased out to organisations and people with connections to corporators and politicians. In 2003, Kumbhar had approached the high court which had ordered that civic properties be leased only through a tendering system.
The civic body owns about 3,500 properties reserved for hospitals, community halls, libraries, schools and other amenities. Many properties have been leased out for various purposes, but there is no system in place to check whether the properties are being used for the purposes they have been leased out for. The PMC has not recovered rent from hundreds of properties for several years.

PCMC To Acquire Additional Land For Flyover

PUNE: The standing committee of the Pimpri-Chinchwad Municipal Corporation (PCMC) approved a proposal to acquire additional land at Kasarwadi for the flyover being built near Nashik phata.
The PCMC will have to acquire land along the Mumbai-Pune highway stretch for providing the “necessary links” to the flyover. The land to be acquired has not been shown in the PCMC development plan.
The municipal corporation has already started the construction work of the two-storied modern flyover which will go across the railway line as well as the Pavana river at Kasarwadi. The PCMC will be spending over Rs 90 crore on the flyover.
In another decision, the committee approved a proposal to allot work to an agency for carrying out a survey for the development plan of the Tathawade village which was merged within the PCMC limits last year.
Source

Pune Real Estate – BRTS: Civic Body To Intensify Land Acquisition Drive

Under criticism for the slow pace of development work under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the Pune Municipal Corporation has chalked out a four-month plan to launch an extensive land acquisition drive for road widening to set up the Bus Rapid Transit System (BRTS).
“The civic administration has been able to only complete the acquisition process of the land that was vacant. The development work on the acquired land is almost complete and now steps are being taken to acquire the land that has structures on it,” said Sudhakar Telang, PMC land acquisition and estate officer.
He said land will be acquired on Nagar Road, Alandi Road, Sinhagad Road and Karve Road in the next four months. Telang said that since the property owners or occupants have not cooperated with the civic administration on land acquisition, the special drive will be aimed at using the powers with the civic body for forceful acquisition of land for implementing developmental projects.
“The action will be taken with the help of staff of anti-encroachment department and city police,” he said, adding, the civic body has already served notices to property owners. The action will lead to demolition of structures on roads that are to be developed for BRTS. Under JNNURM, the civic body is carrying out road widening work, developing dedicated bus lanes and cycle tracks among others.
Work on the 16.5 km BRTS stretch from Katraj to Hadapsar via Swargate was launched in 2006, however, it was plagued by accidents and delays. The PMC has now speeded up work on other BRTS routes.
Source

PCMC Collects Rs 60 Lakh From Constructions In Villages

PUNE: New constructions that have come up in villages situated in the 10 kilometre periphery of the Pimpri-Chinchwad township have collectively paid Rs 60 lakh in the last three months for obtaining a No Objection Certificate from the fire brigade.
Kiran Gawde, chief fire officer of PCMC, said the money was charged in accordance with the state government notification issued in May this year to ensure planned development in areas surrounding the Pimpri-Chinchwad township. So far NOCs have been issued to 20 new constructions in 77 villages of Khed and Maval talukas. Earlier, A similar notification was issued to villages lying close to the Pune Municipal Corporation limits.
Uday Wankhede, deputy chief fire officer of PCMC fire brigade said, “Developers of 20 new constructions had applied to obtain the NOC. Most of them were for residential use while others were for hotels and hospitals.”
Source

PCMC Grant For School Approved By Maharastra State

PUNE: The state government has approved the Pimpri-Chinchwad Municipal Corporation’s proposal of giving Rs 25 lakh grant to the Rayat Shikshan Sanstha for building a girls’ school in Dehu village.
The proposal was sent to the state government for approval as the grant was meant for an institution which was outside the PCMC limits. The Sanstha plans to construct a three-storied building, having five classrooms on each floor.
The total estimated construction cost is Rs 89.40 lakh. It has collected Rs 20.85 lakh through donations from various sources.
Read the rest of the article here.

Celestial City: Ravet’s Pride Is Right On Schedule

Celestial City, the unique 25-acre integrated township by Pharande Spaces and Rama Group, is now in the second phase of construction. As planned, this premium apartments complex at Ravet, PCMC is transforming the real estate topography of an area known as the Gateway to Pune.
celestial-city-ravet-roads1
Celestial City has been conceived as a completely self-sufficient residential microcosm that will offer its residents absolutely everything by way of a comfortable lifestyle.  That blueprint is now rapidly being transformed into reality as construction enters the next phase.
The location of Celestial City couldn’t be better – it was planned as both the ultimate residential destination and a sure-fire investment hotspot. Ravet is located at the confluence of the old NH4, the Dehu Road- Katraj bypass and the Mumbai-Pune Expressway.
celestial-city-phase-two
Its ready accessibility, as well as proximity to vital establishments, has earned it the distinction of being one of the most prominent growth corridors on the Pune real estate market.
Because of its unique location, invigoratingly green spaces and affordable residential property options, Celestial City is now attracting a huge demand from executives working in Hinjewadi, Pimpri-Chinchwad, the Talegaon MIDC and Chakan MIDC.
With Phase II of Celestial City now in active progress, the project is well on the way to completing the planned roster of 2000+ units at this avant-garde budget homes project.
celestial-city-sample-flat
Celestial City is backed by the experience and impeccable track record of two leading development concerns. Pharande Spaces, the residential property trendsetters in Pimpri-Chinchwad, already have several landmark projects to their credit – including the award winning Culture Crest.
To date, Pharande Spaces have completed residential projects in excess of 1.5 million square feet. Likewise, Rama Group’s professionalism and expertise have led to the completion of 23 projects that cumulatively account for 5 million square feet of construction.
The fact that Celestial City is fully underwritten by the country’s leading financial institutions ensured a smooth, seamless construction flow even during the worst of the recent recession. With Phase II on schedule, Ravet’s crowing glory has taken a decisive step towards final completion.
When two real estate giants join hands to create the City of the Future, the outcome can be nothing less than magical….

celestial-city-archA masterpiece in the making

celestial-city-sample-flat-livingroom
K. D. Nagarkar is a blogger and freelance journalist who specializes in real estate and environmental issues. He keenly follows the development of integrated township properties and other sustainable projects in and around Maharashtra.
You may reprint or quote this article with full credit to the author and a link back to PunePropertyBlog.com

PCMC Tells Irrigation Dept To Mark Floodlines On Development Plan

PUNE: The Pimpri-Chinchwad Municipal Corporation has asked the state irrigation department to mark floodlines of the Pavana, Indrayani and Mula rivers on the city development plan. The corporation would send the revised plan to the state government for approval.
The development plan of Pimpri-Chinchwad was approved by the state government in 1995. However, 18 villages were merged with the PCMC in 1997. The process for approval of the development plan of the merged villages is still going on.
Read the rest of the article here.

Pimpri Chinchwad: The Evolution Of A Pune Real Estate Paradise

integrated-residential-township
If you are new to this new Pune real estate boomtown – Pimpri Chinchwad, you need to know that its a modern twin city situated South-East of Mumbai, in the North – West quadrant of Pune.
Pimpri Chinchwad also happens to be the fifth-most populated city of Maharashtra and has long been famous for being one of the most prominent industrial destinations outside Mumbai.
The twin cities of Pimpri-Chinchwad, governed by the Pimpri Chinchwad Municipal Corporation (PCMC), are located 15 km from the Pune city centre. They form a continuous urban stretch, adding to the overall Pune Urban Agglomeration, and contain a thriving industrial belt that primarily consists of engineering and automobile industries.
In fact, PCMC and Pune, when viewed as a unified geographical unit, make up one of India’s largest industrial areas. Pimpri-Chinchwad has contributed a lot to the fact that Pune is the second-largest industrial city in Maharashtra after Mumbai. That fact alone has already spelt gold in terms of the Pune property market – but there’s a lot more.
Let me tell you a bit more about this new real estate boomtown, and why it has come so much into the limelight. As we know, location is everything in the real estate market – both in terms of connectivity to the primary city and pleasantness of environment.

Pimpri-Chinchwad: Location And Connectivity

Pimpri-Chinchwad is situated on the Deccan Plateau and is surrounded by hills.  It rises 560 meters above the mean sea level, near the confluence of Mula and Mutha rivers. Moreover, the Pavna River traverses the city, with the Indrayani River cutting through it on the north-western outskirts.
Accessibility by road is excellent, to say the least. Pimpri Chinchwad is situated on the confluence of NH-4 (the Mumbai-Bangalore highway) and NH-50 (the Pune-Nasik highway).
In fact, the PCMC area boasts of an extensive network of national highways to major cities like Mumbai (163 km), Nasik (202 km), Nagpur (880 km), Bangalore (835 km), Chennai (1166 km) and Hyderabad (548 km).
Railways are an important ingredient of economic growth, and Pimpri Chinchwad is located on the Mumbai-Pune mail line. It has broad-gauge, direct connectivity to Mumbai, Bangalore, Chennai and Hyderabad.
The Pune airport, which is just 20 km  away, has regular direct flights to New Delhi, Mumbai, Bangalore, Kolkata, Chennai and Hyderabad (not to mention direct flights to Dubai and Singapore).

Industries in Pimpri-Chinchwad

The Pimpri-Chinchwad area is home to over 4000 industrial units in the large, medium and small sectors, these include some of the most reputed industrial companies of the country. Needless to say, this makes it one of the most developed industrial belts in Maharashtra.
Where did it all begin? With the arrival of Hindustan Antibiotics in 1954. The establishment of this public sector pharmaceutical company proved to be a major catalyst, and PCMC saw rapid industrialisation over the next few years.
To prepare the region for the boom to come, the Maharashtra Industrial Development Corporation (MIDC) procured large tracts of land in 1956, and in no time at all multinationals like SKF and Phillips, and Indian giants like Tata and Bajaj set up major units here.
Today, PCMC industrial portfolio includes a large number of engineering units as well as a number of other industries such as pharmaceuticals, chemicals and telecommunications.
With such a scale of industrial development, the PCMC area emerged as a major employment treasure trove, and the population grew exponentially. Today, Pimpri- Chinchwad is a metropolis in its own right, and is rightfully considered Pune’s sister city.

Climactic Magic in Pimpri-Chinchwad

The PCMC area has invigorating climate throughout the year, thanks to it high altitude, moderate rainfall and a green cover that Pune cannot even begin to compare with. The monsoon arrives in during first week of July and extends to mid-September.
In this period, PCMC witnesses an average annual rainfall is 700-800 mm. The maximum relative humidity during the rainy season is 70-80%, and falls as low as 30% on summer afternoons.
This is as close to a perfect climactic setup as one can achieve anywhere in Maharashtra, and is one of the main reasons why so many people from various regions choose to settle down here.

Ready For A Home In PCMC?

Pimpri-Chinchwad is now an extremely popular residential destination, which is why real estate development here has picked up rapidly over the last three to four years.
One of the most important features of the PCMC residential property market is the fact that it features large and amazingly modern integrated residential projects. Homes in these projects offer everything required for a comfortable lifestyle within them – often at half the property rates prevailing in Pune.

Anil Pharande is President of CREDAI PCMC and Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.
This article may be reprinted with proper attribution to the author and a link back to PunePropertyBlog.com

Celestial City Inaugurated By Bollywood Actress, Urvashi

Celestial City, an integrated township spread over 25 acres at Ravet launched the second phase of the project on August 13. Well-known model and screen actress, Urvashi Sharma inaugurated the new phase.
A joint venture of Rama Group and Pharande Spaces, Celestial City comprises everything one would find at a residential complex and more, including entertainment, leisure, and amusement; from a mall, multiplex, lounge bar to an aqua park, and an all encompassing sports arena.
Among the many notable personalities from the real estate sector present for the occasion, were Anil Pharande, Director, Pharande Spaces, Ram Panjabi, Founder of Rama Group, Moti Panjabi, MD, Rama Group, Govind Panjabi and Jeetu Panjabi and Raju Panjabi of Rama Group. The occasion also marked the unveiling of the new Celestial City ad campaign.
Read more: Urvashi attends a Pune do – Bollywood – Filmi Parties – Entertainment – The Times of India