PUNE: The definition of an affordable property varies across the country and changes from city to city. An affodable housing segment of Mumbai may possibly fit into the premium segment of Tier II cities. Pune’s realty market is very dynamic and it offers space for all the segments, but the locality is different for each property class.
Pune’s real estate market is largely end-user driven and the market is lauded for its steady and stable nature. However, increasing property prices in most areas of the city have led to the growth of the newer areas towards the outskirts. These locations offer properties at affordable prices. Supporting the view, Sumit Jain, co-founder, CEO, CommonFloor.com, says, “Pune’s affordable market, largely concentrated towards the peripheries, house prices ranging between Rs 3500-4500 per sq ft.
In this segment, the size usually ranges between 600 sq ft to 800 sq ft. On a broader scale, properties ranging below Rs 40 lakh fall into the affordable category.
Properties within the range of Rs 15 lakh usually have no amenities and are vanilla apartments while properties above this range have basic amenities such as landscaping, children’s park, entrance lobby, and swimming pool, basic value-add features et al. The demand for affordable housing in Pune has seen a surge lately owing to various reasons. The city is one of the major hubs for the automotive industry in the country and houses various companies such as General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover and so on. As a result, there is high demand for affordable housing for the workers of these companies whose salary scale is not very high. This is one of the major reasons why affordability is still maintained in the city and prices are still comparatively less.“
Some experts believe that the definition of affordable housing typically includes properties, which fall under the range of Rs 25 lakh to 45 lakh. In terms of size, the trend is that due to the high cost of land, construction developers are zeroing in on locations on the outskirts of Pune to build affordable homes, by reducing the built up area.
The average size would be in the range of 500 to 900 sq ft. Share of affordable property in Pune’s realty market “Pune’s real estate landscape is expanding and land prices are still low on the peripheries. This provides an opportunity to the builder to offer affordable homes within the price band of INR 10 lakh to 20 lakh. The demand for these projects comes from both the IT and manufacturing sectors. As Pune has quite a few important manufacturing industries situated on the outskirts of the city, the demand for the affordable residential housing is scaling up among blue-collar buyers. Factors such as constantly improving connectivity and the increasing availability of social infrastructures like hospitals and schools are the primary drivers of investment potential for these projects,“ opines Anant Pandit, Director, Apex Multicons Pvt Ltd.
The concept of affodable housing is a hot topic and many builders are looking to launch projects in this category as the demand-supply gap is high, which drives sales volumes to a large extent in the entire.