Builders and investors are slowly moving out of Pune looking for greener pastures to construct residential buildings and apartments. The real estate in Pune has been gradually declining over years as there is more traffic going out towards the fringe areas of the city. In the year 2007 – 2008, the Pune Municipal Corporation provided permissions to 4,379 buildings. The number has been slowly reducing over years, with 2014- 2015 seeing the lowest count of 3,866.
When asked about the move, many of the builders and developers had a lot to say. The MD of Gera Developers, Mr. Rohit Gera told that, "The gap between demand and supply has widened. People are concentrating on affordable housing, which is possible only outside the city. There are almost 90,799 homes lying unsold within city limits."
So, even if there are plenty of apartments for sale in Pune city limits, investors are going outskirts simply because of the affordable pricing. Developers say that the cost for building approval and other certifications inside the city are very high compared to the outskirts. They also complain about the extra-long time taken for the paperwork to be completed.
Kolte- Patil Constructions CEO Mr. Sujay Kalele said that, “Development charges and ready reckoners (prices of property for a given area published and regulated by the state) are far higher within city limits. There is a difference of Rs. 4 to 5 lakh. Also, it is tedious and time-consuming to get a plan passed in the corporation. It used to be two or three months five years ago, but now it takes nearly a year."
He also commented on the fact that the connectivity between the city and the suburban areas has greatly improved over the years. So, most home buyers prefer to look for property in Pune outskirts. Plus, they will also be easily travel to the other cities because of close proximity to the bypass and the national highways.
Replying to these comments by the builders and developers, the city engineer of PMC, Mr. Prashant Waghmare said, “We are providing good infrastructure and services. Therefore, our building charges are higher compared to other corporations.” He also added that since some of the villages outside the city limits have been added to the corporation, so the PMC has not seen a great loss of revenue even if the number of permissions have reduced.
Apart from these technical reasons, there are many reasons for people moving to the outskirts of the city. The first reason is affordable property values. The apartments and flats in Pune outskirts are priced less than those inside the city. So, investors looking to get more value for their money prefer to go towards the fringes of the city.
Another reason why the outskirts of Pune are filling up is lower taxes that the property owners have to pay. Availability of amenities and affordable lifestyle are some of the reasons why many people are investing in properties in Pune outskirts.
Author Bio:
Shasthri, a postgraduate in finance management, is a financial advisor for a leading firm. His interests are investing, cricket and chess.He shares his views on real estate on Indiaproperty.com
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