Pune gears up for affordable housing
Aug 10, 2013
Source : The Times of India


PUNE: Affordable housing is a term we use for the residential units in India’s urban areas, which are affordably priced, with respect to the households that fall within a specific limited income range. There is no single set of parameters to define what an affordable housing unit should cost in India. This is because the pricing and feasibility of the developers of affordable housing, is a function of the city, the location within the city, the type of project being built and also the construction technology employed.

In India, it is appropriate to judge the affordability of a home, on three broad parameters – the monthly income of the prospective buyers from the target segment, the size of the home and of course, its price. There is another element that should be mentioned, namely the target clientele itself. We tend to look at the word ‘affordable’ solely, in terms of the LIG (lower income group) segment. For this segment, affordable housing would mean 200-300 sq ft dwellings, priced at between Rs 7-12 lakhs.

What about the people who earn more than the average factory labourer but still cannot afford to buy a decent one-BHK flat of 300-450 sq ft, within 10-15 kms from their workplaces? They too need affordable housing – housing appropriately priced for the middle-class. The home buyers in this segment can afford to buy flats, in the price range of Rs 30-35 lakhs via home loans.

Obviously, they expect a certain standard of living, comforts and facilities for this expense. However, such flats are hard to come by in our larger cities. This is the case even in Pune. Today, around 30 per cent of India’s population lives and works in the urban areas. This means that they occupy less than two per cent of the land available in the country. If we zoom in on Maharashtra, it emerges that close to 60 per cent of the overall population lives in the urban locations. Distressingly, a closer look at a city like Mumbai reveals that over 50 per cent of its citizens live in the slums. Mumbai’s slums occupy less than four per cent of the land available in the city. Obviously, the affordable housing quotient has gone very wrong in this prosperous neighbouring city of Pune. However, the problem is larger than just one city, which continues to get negative publicity in the press, only because of its exorbitantly high property rates and enormous annual inward migration.

Despite everything being said on the matter, the shortage of affordable housing in India, is getting worse instead of better. The country’s urban population of 285 million has multiplied itself by five, over the last half century. It is projected that it will continue to increase at this fast pace and that 50 per cent of all Indians, will be living in the urban areas, by the end of the next three decades. So, if the shortage of housing for the lower income segment stands at 25 million today and there is no increase in the pace of supply of affordable housing launches, what will this figure look like in 30 years?

Let us look at the situation from a real estate market point of view. There is, in fact, a gigantic market for affordable housing in India. Currently, it is valued at anything between Rs 5-10 trillion. What is really being done to address this huge market, especially, the one constituted by the ever-growing middle class? There are next to no government incentives for the projects with flats in the Rs 30-35 lakhs bracket.

While the answer to this question, in Mumbai, seem to lie in the small projects on the far outskirts of the city, Pune presents a far more encouraging picture. The developers of township properties in Pune have now begun addressing this market segment, with an internationally-inspired property development model, called the integrated townships. This model is based on the maximum value for the money to the buyers, based on the high-grade common infrastructure and shared facilities, in more cost-effective yet, progressive areas like the Pimpri Chinchwad Municipal Corporation.






Latest Realty News

Three reasons to invest in Majiwada
Aug 10, 2013
MUMBAI: Located off the Thane-Ghodbunder Road, Majiwada is one of those locations where residential real estate market is riding high on connectivity. Experts say that the area is expected to drive significant residential demand in the coming years. Apart from enhanced connectivity, social infrastructure and comparatively lower prices has gradually rendered Majiwada a prospective residential option for home seekers
Sand mining ban: Builders fear project cost escalation
Aug 09, 2013
MUMBAI: The Confederation of Real Estate Developers’ Association of India has said the ban on sand mining by the National Green Tribunal was arbitrary and against growth.
DLF puts Pune IT special economic zone on the block
Aug 08, 2013
MUMBAI/BANGALORE: DLF, India's biggest real estate developer, has put on the block the second phase of its under-construction IT special economic zone project in Pune'sHinjewadi for an anticipated Rs 250 crore, a move in line with the company's strategy to pare its debt by exiting non-core projects and businesses.
Low cost homes in East Pune
Aug 06, 2013
PUNE: East Pune localities such as Kharadi, Wagholi and Hadapsar, which offer one and 2-BHK properties in the Rs 20-40 lakh price range, are witnessing large scale consumption of residential spaces. Old residents of the city reminisce how these areas grew with the boom in real estate witnessed a decade ago. Wing Commander Atul Chandra, who has made this city his home since the late 1990s, remembers his weekly rounds to the Hadapsar sabzi mandi.
Worli-Prabhadevi-Dadar West: Best option for upper-crust homebuyers
Aug 06, 2013
MUMBAI: Worli in south Mumbai and Prabhadevi and Dadar west in central Mumbai, are the premium localities in Mumbai offering an array of property options for the well heeled buyers. Infrastructure marvels with good connectivity, are attracting end-users and investors to these areas. Let’s delve into the residential options available, with facilities and amenities in these areas and see what sets them apart:
Orbit Corporation defaults on 96 crore loans
Aug 06, 2013
MUMBAI: Mumbai-based real estate developer Orbit Corporation has defaulted on liabilities of 96 crore, including repayment of loan availed from LIC Housing FinanceBSE -5.13 % and the interest on the amount, joining the list of troubled players in the sector grappling with a severe liquidity crunch.
Pune civic body collects Rs 500 crore as property tax
Aug 05, 2013
PUNE: The civic administration has collected Rs 500 crore from property tax since the start of new financial year. Total 5.58 lakh property owners have paid their tax since April 1.
Rented your property? Steps to take if a tenant refuses to vacate
Aug 05, 2013
MUMBAI: When it comes to the relationship between a property owner and a tenant, it's best to be safe than sorry. Yet, hasty decisions, cutting corners and blindly trusting brokers are the reasons for many a legal battle waged by landowners against rogue tenants. Take the case of Mumbai-based Merlyn D'Souza.
It’s raining offers for house hunters in Mumbai
Aug 04, 2013
MUMBAI: Call it monsoon madness if you will, but Mumbai’s builders have lined up some unusual incentives to stimulate apartment sales and cope with the problem of inventory build-up.
RIL denies CAG charges, says cleared all dues to MMRDA
Aug 03, 2013
MUMBAI: Reliance IndustriesBSE 0.84 % on Friday denied CAG report that blamed Maharashtra government for not recovering lease rentals from it for its upcoming BKC project, saying the company has paid all its dues to MMRDA.

Latest Realty News Of State

Realty Talk's