Pune Real Estate: The Price Of Rapid Urbanization
By the most recent reckoning, India’s population currently hovers around the 1.15 billion mark. It is estimated that by 2030, this figure will have grown to around 1.53 billion. India’s urban areas are just about ready to burst at the seams, on the heels of an accelerating population explosion.
The population growth in India’s rural areas in the present decade is around 18%, and over 30% in the urban areas. This pattern of urbanisation is seen as encouraging, since it seems to indicate that India will attain the global urbanization standard average in the course of the next decade.
However, it is also true that this upsurge in our cities’ population is putting available civic structures like public transport, water supply, drainage, sewerage and obviously the supply of housing under severe pressure.
This raises the question – how are India’s real estate developers addressing the problem of insufficient infrastructure in and around their projects in the main cities? The fact is, they can’t do much.
In cities like Pune, property buyers have no choice but to turn a blind eye to the absence of sufficient infrastructure. They are aware of the fact that they will face numerous inconveniences, but what can they do?
Many opt to buy into projects that boast of compensatory measures to overcome the infrastructure deficit. These would include independent water supply if a reliable municipal pipeline doesn’t exist, electricity backup to make up for unreliable power supply and sump pits if the area does not have adequate sewage.
However, such projects in Pune City are few and far between, and homes in them come at extremely high prices. Also, no matter in how many ways Pune developers compensate for lack of civic infrastructure, they cannot add more than a token patch of landscaped lawn by ways of natural ambience.
The high property rates are a real problem. Many of those who buy flats in Pune have saved all their lives for buying their Pune dream home. They have made a lot of sacrifices to make this happen; having finally managed to save enough, they buy their homes and immediately regret it.
The maintenance costs for their flats are far too high for them to bear – a lot of them can’t afford petrol for their cars anymore. They travel to and from work by bus.
We have all looked at the parking lots of highly-priced residential projects and seen dusty cars with handmade posters on the rear windows saying things like ‘Homemade Detergent Soap Available at Flat 12A’ and ‘Tuition For Stds. V to IX – Contact Mr. XYZ at Flat 26C.
It simply makes no sense to invest everything in a home and then live in financial stress afterward. The solution obviously lies in finding a home where the same investment buys you more.
The choice is between paying a certain amount on a small, under-equipped flat in the crowded central city or on a spacious home in a location blessed with natural beauty and and sound infrastructure.
The Pimpri Chinchwad Municipal Corporation, which planned its residential areas decades ago, offers such options. The integrated residential projects in Ravet and other sectors of Pradhikaran close to the upcoming International Convention Centre offer the kind of homes that Puneites have always dreamed of, but never been able to own.
The Pimpri Chinchwad Municipal Corporation also has an extremely vibrant economy, offering more and more job opportunities across all business sectors with every passing year.
Finally, because of the regulated nature of the PCMC real estate market and the high emphasis on civic facilities and amenities, there is no question of an eventual infrastructure deadlock. The real estate prices are way below those see in Pune, too. For that reason, these are the kind of homes that will be sources of joy for several generations.
Anil Pharande is Chaiman – Pharande Spaces, a leading construction and development firm operating in the PCMC area of Pune, India.
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