PUNE: Real estate development is happening in the city at a steady pace, but the municipal administration will have to match this progress with infrastructure development so that there is no mismatch between growth of construction and civic amenities, said real estate developers on 22.
Participating in the second real estate conclave of the Confederation of Indian Industry ( CII), Pune, the developers deliberated at length on issues facing the real estate sector and the different ways of responding to these challenges. Among their expectations were changes in the floor space index (FSI) rules, speedy clearances to projects and an active role for the Pune Metropolitan Region Development Authority (PMRDA).
J K Bhosale, chief operating officer of the City Corporation Limited, which is developing a township in the city, stressed on the need for faster government clearances. “This will help deliver homes faster and at a lower cost. However, constructing more homes would also mean more people migrating to the city with their vehicles. So the administration must plan the infrastructure in a way that it will facilitate easy movement on city roads. The recent clearance for the ring road is a good sign and electrification of the Pune – Daund rail line will create scope for developing townships on that line,” Bhosale said.
Sujay Kalele, chief executive officer of Kolte Patil Developers, said Pune’s potential is alive despite tough economic conditions in the country. “The IT, auto and education sectors are holding on. Pune will keep attracting industrial investments as the vast base of educational institutions will offer high caliber talent to industries. Besides, the city will benefit from its proximity to Mumbai – a big market place,” he said. Kalele pointed out that most of the development is happening in villages around Pune which do not have the administrative machinery to respond to the infrastructure peculiarities of such large developments. “It is therefore essential that the PMRDA is formed.”
Earlier, speaking at the session on ‘Navigating risks and maximising investment opportunities in volatile markets,’ Sunil Mantri, chairman of Mantri Realty Limited, said developers must desist from locking up capital in land purchases and use the option of developing a project jointly with land owners. “This will take the pressure off the developers who can then provide enough finances for construction,” Mantri said.
Abhishek Kumar, vice-president of design and development at ABIL Corporation, said there is no scope now for speculative investment and one must take up only those projects where construction will begin within 18 months or sooner.