Declared as one of the top two most liveable cities of India, Ease of Living Index by Ministry of Housing and Urban Affairs (MoHUA), Pune also ranks amongst the top 3 cities for buying homes for end-use and investment in India.
From a price growth advantage, Pune has witnessed the highest rise of 38% in average property prices between 2013 and 2020. Pune, along with Mumbai, also accounted for 53% of share of unit sales of the total homes sold across top 7 cities in Q1 2021, as per ANAROCK report.
Pharande Spaces, a leading real estate construction and development firm in Pune, has developed over 10 million square feet in residential space with multiple projects in the pipeline.
Manish Joshi from NewsBarons connects with Anil Pharande, Chairman, Pharande Spaces who informs ‘We do not expect much price appreciation in 2021 as developers are keen to harness the ongoing demand’.
NB: What has been the impact of the pandemic on Pune real estate.
Anil: While enquiries reduced immediately after the first lockdown was announced, they picked up again. We have witnessed a massive resurge for residential demand as people are eager to secure their living environment and ensure that they have complete control over it. A pandemic is a bad time to be living on rent.
NB: What was the impact of the stamp duty cut on the Pune residential market. How do you see the residential market moving post the removal of rate cut.
Anil: The stamp duty cuts were a big boost for housing demand in Pune and PCMC. Many leading developers announced that they would shoulder the remaining stamp duty charges for the benefit of their buyers. We were hoping for an extension of this rate cut, as it made a huge difference.
NB: How do you see the Pune RE growing in 2021.
Anil: Pune’s inherent economic drivers are intact and especially the IT/IteS sector has made a decisive comeback. While commercial real estate demand may remain subdued in 2021, we expect housing demand to level off at a steady pace. The current demand is almost completely driven by end-users. We do not expect much price appreciation in 2021 as developers are keen to harness the ongoing demand.
NB: What are the Challenges / Opportunity for RE in Pune.
Anil: Pune still faced massive infrastructure challenges and we hope these will be addressed by a larger involvement of the PMRDA in the future. The lack of adequate infrastructure results in demand stagnation in affected areas, and prevents newer areas from becoming more viable for real estate expansion.
NB: Which residential segment has witnessed surge in demand.
Anil: Ready-to-move projects are doubtlessly the biggest draw, but many buyers are again willing to go for under-construction homes as long as the developer is reliable. Buyers are especially interested in townships because these offer various assurances and conveniences which have become even more relevant in the pandemic times. Mid-income housing has been getting the most number of inquiries, followed by affordable housing. However, there is also an increase in demand for luxury homes as HNIs are keen to seal deals while the property prices are this reasonable.
NB: How has your brand fared in 2020.
Anil: Pharande Spaces did not have to slow down construction during the first lockdown as most of our construction labourers are local. Moreover, we provide ample facilities to them and ensure their safety. There was a demand slowdown in the first three months of the pandemic, but as already mentioned, demand quickly returned and we have been seeing steady sales in our various township projects. Our latest golf luxury township Vaarivana is especially seeing a lot of demand as buyers are intrigued by its advanced facilities and amenities at Urse, which is one of the most hottest new growth corridors of Pune.
NB: What are your projects in the pipeline.
Anil: Vaarivana in Urse Central, Felicity in Ravet, Puneville and Karosa in Punawale, L-axis on Spine Road and Woodsville in Moshi are few of our recently completed projects and under further development.