Pune Property Blog

Anil Pharande

Affordable housing is a term we use for residential units in India’s urban areas which are affordably priced with respect to 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 to developers of affordable housing is a function of the city, location within the city, 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 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 square foot dwellings priced at between 7-12 lakh.

But what about people who earn more than the average factory labourer but still cannot afford to buy a decent 1 BHK flat of 300-450 square feet within ten to fifteen kilometers of 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 lakh via home loans.

Obviously, they expect a certain standard of living, comforts and facilities for this expense. However, but even such flats are hard to come by in our larger cities. This is the case even in Pune.

Today, around 30% of India’s population lives and works in urban areas. This means that they occupy less than 2% of the land available in the country. If we zoom in on Maharashtra, it emerges that close to 60% of the overall population lives in urban locations. Distressingly, a closer look at a city like Mumbai reveals that over 50% of its citizens live in slums. Mumbai’s slums occupy less than 4% of the land available in the city. Obviously, the affordable housing quotient has gone badly wrong in Pune’s prosperous neighbouring city. However, the problem is larger than just one city, which continues to get negative 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% of all Indians will be living in urban areas by the end of the next three decades. So, if the shortage for 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 projects with flats in the Rs. 30-35 lakh bracket.

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

With fully integrated township projects like Woodsville and Celestial City, we at Pharande Spaces have been successful in delivering affordable housing for the mid-income segment of home buyers in Pune and the PCMC area.  There are various reasons for this success.

For one, land for these integrated townships was acquired early on in upcoming locations such as Ravet and Moshi. This meant that the price of the finished products could be kept within the means of Pune property buyers. Secondly, townships like Woodsville and Celestial City are conceived and constructed on a model that allows luxurious facilities and amenities on an economy of scale. In other words, it is possible to provide luxurious features for all units in these projects on the basis of a large-scale master plan.

Anil Pharande is Vice President – CREDAI (Pune Metro) and Chairman of Pharande  Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

This article may be reprinted with proper attribution to the author and a link back to PunePropertyBlog.com

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In Pune, property and quality of life were once synonymous, but that can no longer be taken as a given. In earlier years, it did not really matter much where one chose to buy property in Pune – all locations were more or less supportive of peaceful family life in their own right.

Today, while considering flats for sale in Pune, one has to consider a number of variables – among them the levels of traffic congestion and pollution, the availability of basic facilities such as water and, of course, quality of the neighborhood.

Let us take Kothrud, for example. This once charming area was one of the first suburbs to be developed after the old city. Even today, it is considered a desirable core area due to its strong connection with the city centre via Karve Road. However, for better or for worse, Kothrud is also mentioned in the Guinness Book of World Records as the suburb with the fastest urban growth in the world.

Kothrud started developing in late 90s. Back then, Pune City was truly a Pensioner’s Paradise, with little economic activity. People from Mumbai looking to buy property in Pune preferred Kothrud, naturally leading to an accelerated rate of development.

By the time the IT/ITES boom began in 2000-02, Kothrud was a full-fledged residential destination. Because of this, it fortunately did not go the way of suburbs like Aundh and Baner in the West or Viman Nagar in the East as they joined the IT/ITES bandwagon.

Over the past decade-and-a-half, Kothrud has evolved as one of the most densely populated residential destination in Pune. Residential projects are very scarce and the demand is enormous. However, because of the manner in which it grew, Kothrud was not developed holistically in terms of social infrastructure.

Many other areas in Pune developed on similar lines, and the old Pensioner’s Paradise charm soon gave way to massive, relentless development. This began the hunt for less cluttered and more lifestyle-supportive residential locations.

Thanks to the Mumbai-Pune Expressway, Wakad is only about 80 to 90 minutes away from Mumbai

Fortunately, Pune is not a sea-locked city like Mumbai, and there was scope for looking further ahead. One of the first areas to emerge as a preferred area to settle down was Wakad – a once-nondescript village with 5000 locals who farmed sugarcane, onion and groundnut in its rich, black, fertile soil.

In 1983, the Pimpri Chinchwad Municipal Corporation (PCMC) acquired 50% of this virgin location. By 1998, PCMC counted Wakad as one of its areas. Today, Wakad has emerged as the focus of younger, financially fit families that are looking to upgrade their lifestyle by moving to larger, more nature-endowed homes on the outskirts of Pune City.

With the increasing congestion of the previously preferred area of Aundh, neighboring Wakad was seen as the perfect location, with close proximity to the Infotech and Biotech Parks at Hinjewadi, the Pimpri-Chinchwad Industrial area, the Mumbai-Bangalore Bypass, the Super Express Highway to Mumbai and the Balewadi National Sports complex.  Thanks to the Expressway, Wakad is only about 80 to 90 minutes away from Mumbai, and Mumbaikars looking to buy property in Pune saw it as an excellent value proposition.

Of course, Wakad is just one of the chapters that the Pimpri Chinchwad Municipal Corporation has in its book of Pune real estate successes. Today, Ravet and other sectors of Pradhikaran in the PCMC have become the new residential real estate watchwords in Pune. These areas are developing fast and are even now venues of extremely modern integrated residential projects.

However, the development of Wakad marked the beginning of a new residential real estate trend in Pune – the quest for better environments to settle down in and recapture some of Pune’s erstwhile glory as Queen of the Deccan.

Anil Pharande is Vice President of CREDAI Pune Metro and Chairman of Pharande  Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

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Pune property buyers can do little about the rapidly failing infrastructure

By the most recent reckoning, India’s population currently hovers around the 1.15 billion mark. It is estimated that by 2030, this figure will have grown to around 1.53 billion. India’s urban areas are just about ready to burst at the seams, on the heels of an accelerating population explosion.

The population growth in India’s rural areas in the present decade is around 18%, and over 30% in the urban areas. This pattern of urbanisation is seen as encouraging, since it seems to indicate that India will attain the global urbanization standard average in the course of the next decade.

However, it is also true that this upsurge in our cities’ population is putting available civic structures like public transport, water supply, drainage, sewerage and obviously the supply of housing under severe pressure.

This raises the question – how are India’s real estate developers addressing the problem of insufficient infrastructure in and around their projects in the main cities? The fact is, they can’t do much.

In cities like Pune, property buyers have no choice but to turn a blind eye to the absence of sufficient infrastructure. They are aware of the fact that they will face numerous inconveniences, but what can they do?

Many opt to buy into projects that boast of compensatory measures to overcome the infrastructure deficit. These would include independent water supply if a reliable municipal pipeline doesn’t exist, electricity backup to make up for unreliable power supply and sump pits if the area does not have adequate sewage.

However, such projects in Pune City are few and far between, and homes in them come at extremely high prices. Also, no matter in how many ways Pune developers compensate for lack of civic infrastructure, they cannot add more than a token patch of landscaped lawn by ways of natural ambience.

The high property rates are a real problem. Many of those who buy flats in Pune have saved all their lives for buying their Pune dream home. They have made a lot of sacrifices to make this happen; having finally managed to save enough, they buy their homes and immediately regret it.

The maintenance costs for their flats are far too high for them to bear – a lot of them can’t afford petrol for their cars anymore. They travel to and from work by bus.

We have all looked at the parking lots of highly-priced residential projects and seen dusty cars with handmade posters on the rear windows saying things like ‘Homemade Detergent Soap Available at Flat 12A’ and ‘Tuition For Stds. V to IX – Contact Mr. XYZ at Flat 26C.

It simply makes no sense to invest everything in a home and then live in financial stress afterward. The solution obviously lies in finding a home where the same investment buys you more.

The choice is between paying a certain amount on a small, under-equipped flat in the crowded central city or on a spacious home in a location blessed with natural beauty and and sound infrastructure.

The Pimpri Chinchwad Municipal Corporation, which planned its residential areas decades ago, offers such options. The integrated residential projects in Ravet and other sectors of Pradhikaran close to the upcoming International Convention Centre offer the kind of homes that Puneites have always dreamed of, but never been able to own.

The Pimpri Chinchwad Municipal Corporation also has an extremely vibrant economy, offering more and more job opportunities across all business sectors with every passing year.

Finally, because of the regulated nature of the PCMC real estate market and the high emphasis on civic facilities and amenities, there is no question of an eventual infrastructure deadlock. The real estate prices are way below those see in Pune, too. For that reason, these are the kind of homes that will be sources of joy for several generations.

Anil Pharande is Chaiman – Pharande Spaces, a leading construction and development firm operating in the PCMC area of Pune, India.

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Anil Pharande

The concept of affordable housing in India sounds simple enough, but nothing could be more complex than this subject. We all know that India needs more budget homes, but where are they?

Trends come and go. Developers’ business agendas change along with the dynamics of the real estate market. However, the dire need for compassionately priced homes remains. Of course, there are quite a few developers who are addressing the demand for affordable housing. Nevertheless, if we consider the sheer vastness of the demand, their offerings don’t make even make a dent in it.

Soon after the real estate market revival after the Lehman-induced global financial crash, it did seem as though the Indian developers had finally woken up. A huge number of them focused squarely on developing affordable housing projects. The inflexible demand for such homes in our larger cities and their further suburbs meant was their ticket out of financial trouble.

And then the economy revived, and it kept on reviving. Suddenly, home buyers with lower incomes were no longer in fear of their jobs. The stock market revived, and capital began to flow into the real estate sector again. This was good news for the real estate market in general, but bad news for the affordable housing sector. Greed took over again, and the focus of developers once again shifted to higher-priced premium housing.

Premium homes were an attractive segment for developers in 2006-07, and there were many project launches aimed squarely at India’s more affluent classes. The global economic downturn put a brake on this trend only through the worst period of 2008 and 2009. In this period, it did seem as though affordable housing was going to get its due share of attention at last. However, they did not take long to concentrate on premium housing again.

So – where does the common man stand today? What has happened to affordable housing? Was it no more than a passing trend to tide developers over during the leaner economic period? Budget home launches have reduced a lot. In fact, even mid-income homes in many of our cities have become so expensive that demand for them has slowed down.

It cannot be said that nothing at all is happening in terms of budget homes in India. There are commendable efforts still being made by conscientious, smart developers to cater to the housing needs of the lower-income groups. However, it is not enough. The shortage in this segment is still huge. The Government has come out with special schemes for affordable housing for builders, but most of them are not taking up the opportunities.

We are now faced with an escalating problem. More and more people who can be classified as slum dwellers are obtaining good jobs, and are able to afford homes in the bracket of Rs. 7-12 lakh. It is only because there is no supply of homes in this bracket that they continue to live in slums and run-down chawls. The affordable rental housing projects that were announced earlier with so much fanfare are not happening in the required numbers.

This means that India now has vast numbers of people who could live in better conditions, but are unable to. Because of the continued demand for accommodation in slums, it is harder than ever to eradicate them. Slum redevelopment can only take place on a significant scale if the resistance to it decreases.

Anil Pharande is President of CREDAI PCMC and Chairman of Pharande  Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

This article may be reprinted with proper attribution to the author and a link back to PunePropertyBlog.com

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Anna Hazare and his fight against corruption were all over the news for the better part of the month. There was a lot of food for thought for everyone, including property market stakeholders. While there was no direct reference to the immense amounts of black money in real estate, Anna Hazare obviously addressed this aspect in his crusade, as well.

In this context, it is pertinent to note a recent testimonial by a senior representative of a leading international property consultancy here in Pune.  His statement was in response to a request for his views on the subject of corruption and black money in the Indian real estate sector.

He pointed out that the subject of corruption in real estate is bound to crop up again and again, especially in light of the scams that rocked the news bulletins just a few months ago. However, he also correctly pointed out that stricter scrutiny for and measures against the movement of black money in the sector are already being enforced. Nevertheless, he stated, we are still in the early days of our battle against corruption in various business segments, and that it will take time to completely subdue its effects.

Anna Hazare himself would not dispute this fact. The rot of corruption has set in over a number of years, and has therefore sunk rather deeply into it at various levels. To weed it out completely will take time, but the sanitation process can be accelerated with greater consumer awareness. After all, corruption in real estate is fed both at the supplier and consumer ends. Thankfully, this syndrome is already on the decline because of increasing awareness among Indian property buyers.

The traditional viewpoint of black money driving Indian real estate is obsolete in many ways by now. In Pune, property buyers should be aware of the fact that many of today’s larger, reputed developers are already offering completely transparent deals. The prevalence of such developers is, in fact, higher in Pune than in neighbouring Mumbai. Pune property buyers have the option of patronizing such developers.

The times when Pune property buyers were completely at the mercy of corrupt small-time developers are long over. Those looking for homes in Pune are no longer limited in their options. The more prominent developers in Pune have long since recognized the need for greater transparency in the system. After all, the largest component of Pune residential property buyers is made up by the salaried class, who do not have large cash reserves and often need 100% funding on home loans.

However, there are also larger reasons why Pune real estate is becoming more transparent. The Pune property market is a focal point for foreign investors who are attracted by the immense potential it presents. Residential developments around the Hinjewadi and Kharadi IT hubs as well as the integrated townships of Primpri-Chinchwad are drawing massive investments from from domestic and international investors. With the exposure to global funds, the sector has matured rapidly and transparency is becoming a norm.

In addressing the issue of corruption in Indian real estate, it is important to note that there will always be supply where there is demand. A corrupt system holds illegal advantages for both the buyer and the seller. If more and more sellers are willing to offer clean deals, it is to be hoped that more and more buyers will opt for such deals. only then will we be truly on the way to a corruption-free real estate market.

Pharande  Spaces is a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

This article may be reprinted with proper attribution to the author and a link back to PunePropertyBlog.com

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(DNA, Aug 24, 2011)

The Pimpri Chinchwad Municipal Corporation (PCMC) on Tuesday identified 6,720 beneficiaries through draw of lots for its housing scheme for people falling in the economically weaker section (EWS).

The draw of lots took place at Ankush Landge auditorium in Bhosari. The PCMC has uploaded the list of beneficiaries on its website, www.pcmcindia.gov.in.

The PCMC is constructing 13,250 houses under the Jawaharlal Nehru national urban renewal mission (JNNURM) scheme for people in the EWS category.

In the first phase, 6,720 dwellings are supposed to be handed over. The first phase of the project is being implemented on a plot of 75 acres in Sectors 17 and 19 given by the Pimpri-Chinchwad New Township Development Authority (PCNTDA).

The PCMC had received 14,032 applications for the dwellings in Phase I. Pimpri-Chinchwad municipal commissioner, Ashish Sharma, said the 6,720 beneficiaries have to pay Rs50,000 within 45 days as the first installment.

The initial cost of each flat under the scheme was Rs 1.5 lakh, but later went up to Rs3.76 lakh due to cost escalation.

“The civic officials will verify whether beneficiaries possess any properties and if found, the names of such beneficiaries will be withdrawn from the list,” he said.

The beneficiaries will be allotted any of the flats in the EWS scheme. After the hand-over of the flats, a society will be formed.

In 2007, the Union government gave primary approval to the PCMC proposal to implement the EWS housing scheme for JNNURM, estimated to cost Rs449.7 crore.

http://www.dnaindia.com/mumbai/report_pimpri-chinchwad-civic-body-picks-6720-people-for-ews-housing_1579256

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Every Indian dreams of having their very own home, and most people work all their lives to save up enough money to purchase it. In fact, this is the primary driver of the Pune property market, since this city holds to the traditional concept of homeownership as a gauges of security and success. And, of course, a new home is the best gift you can give yourself and your family.

Because of the recent economic crisis, a lot of Pune property buyers have begun thinking twice about purchasing a new home. The major reasons are increased interest rates and the rather unfriendly Pune property rates. While a number of banks are offering to help out families in Pune who want to buy their own home, there are still clouds of doubt that hover above the decision makers.

It is true that buying a home is a huge investment, and that you need to maintain it for a lifetime. For a middle class homebuyer in Pune, buying a residence is literally putting all the chips on the table. Here are some tips that are worth considering before you proceed with buying a property in Pune:

• Location

Location is perhaps the most important factor to consider, because it will say a lot about your purchase. Do not forget that its location dictates the price of your new home in Pune. For example, a 3 BHK flat in the middle of nowhere will cost you a lot less than a 1 BHK in the middle of the city’s commercial district. Some areas are called prime because of their central location. They are close to the places that we need access to, such as schools, healthcare facilities and shopping centres. These places cost a lot more because they offer all of these.

However, the new concept of township properties has created an entirely new paradigm. The new townships in Pune allows property buyers to avail of all these facilities even if the location is not in the centre of the main city. Some of the best townships in Pune are coming up in the Pimpri Chinchwad area – for instance, Woodsville in Moshi and Celestial City in Ravet, both being developed by Pharande Spaces. These are integrated townships that offer every convenience of modern living in Pune’s flourishing sister city.

• Price

The cost of your flat in Pune is obviously one of the most important considerations. As already stated, certain properties in Pune cost more simply because they are centrally located within the city. It is significant to note that despite the higher pricing, the homebuyer has to put up with traffic congestion, air pollution, lack of greenery and inadequate parking facilities.

Those who are looking for a reasonably priced flat in Pune will only find it in the further locations. Many of these new areas do still have some greenery and less traffic congestion and pollution. However, in time these areas will also succumb to the hammer of indiscriminate development which has been the hallmark of the Pune real estate market.

Again, Pimpri-Chinchwad township properties offer the perfect alternative. The real estate development in the PCMC area is strictly controlled. This means that infrastructure keeps pace with property development at all times. In other words, these Pune township properties will never be strangled by over-development and traffic snarls. They are the perfect alternative for Pune property buyers who are looking for a clean, green environment to live in – not only for the current generation, but for all generations to come.

• Security

Security is a major concern in a fast-developing city like Pune. Your choice of location for your new home also reflects on the safety of your family as well as your property. Security is definitely a very important consideration when you purchase a new home. It makes more sense to buy a property in a township project which offers round-the-clock security than in a urban city centre with a high crime rate.

• Appreciation

While central location is a big driver for property prices, central locations are also the most volatile in terms of price fluctuations. This is because the property market in city centres is more often than not driven by investors rather than genuine end users. On the other hand, there are no other price drivers in a congested, overdeveloped city. Very little can be done to enhance the infrastructure and therefore the lifestyle quotient of property owners.

Though prices stagnate in the city centre for these reasons, property valuations for township properties in developing areas such as Pimpri Chinchwad increase because of the better infrastructure, more wholesome environment and the steady – yet controlled – addition of value-adding projects such as office complexes, malls, schools and hospitals.

While buying a flat in Pune, it makes a whole lot of sense to consider the purchase from all angles. In short, keep in mind what kind of standard of living you wish to enjoy in your lifetime and also pass on to your children.

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Ajay Atul, the Marathi music composer-director duo, which has created a storm in Maharashtra, picking up a bushel full of awards in the last decade, will perform before an estimated audience of over 25,000 music lovers at the Balewadi Sports Complex on Saturday, the 29^th of January. Their orchestra of 110 musicians will back iconic singers and performers like Hariharan, Shreya Ghoshal, Kunal Ganjawala, Abhijeet Sawant and Vaishali Samant.

Ajay Atul combine traditional Maharashtrian music with a modern rhythm and beat. They use centuries old musical styles like Jagran, Gondhal, Lavani and Bhaktigeet as well as today’s rock and pop. Their eclectic choice of instruments includes the Dhol, Dholak and Basuri, as well as synthesizers, blending them together into heady, contemporary compositions.

“When the idea was put forward by Mr. Pharande, we knew we had to work this out, because we would never miss a chance to perform in Pune We’ve added surprise elements and performers in our concert this year which is especially designed for Pune.” said Atul Gogavale.

Pharande Spaces, the well known, innovative Pimpri-Chinchwad based Developers; have a lot in common with Ajay Atul’s music, since they too, create environments like Woodsville and Celestial City, which foster traditional culture and community bonding in a modern ambience, comprising a mélange of apartments, row houses and villas, in a setting which includes fine dining, shopping, varied sports and entertainment.

“The venue, Balewadi, being close to Pimpri-Chinchwad, will give our friends and well wishers spread across PCMC and Pradhikaran, a wonderful chance to enjoy an entertaining evening and will also serve to awaken interest in the classical Maharashtrian musical tradition among the present generation” says Mr. Anil Pharande, Chairman, Pharande Spaces.

This concert is also a splendid, opportunity for Pharande Spaces to implement their Corporate Social Responsibility. It will promote awareness of social concerns faced by our society as a whole, and in particular, will give an impetus to organizations like the Prabodhan Trust and the Pimpri Chinchwad Social Foundation who are dedicated to providing affordable solutions for treating diagnosed health ailments in young ones, as well as promoting all cultural and social activities that promote our tradition.

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(Business Standard, Jan 19, 2011)

Integrated township projects offer developers an opportunity to cash in on the revival in demand for residential & commercial space

Ajay Arora, a multinational software company employee, commutes 2 hours daily to work in rush-hour traffic. He spends as much time — sometimes more — on the journey home. Driving is his passion, but given the gridlock going into Bangalore almost the time, he recently hired a driver. Still, he is frustrated by the amount of time he spends on road.

Then, his firm took office space in an integrated township in Bangalore. “It was a dream come true,” he says. “This township includes my office and I am taking a flat that is hardly 10 minutes away on foot. It has a shopping mall, multiplex, hospital, school and most of the necessary amenities within walking distance,” says Arora.

Realty players across India are hoping there are many more people like Arora and are betting on the specialised real estate model of integrated townships as their next growth vertical. “Residential conditions in our major cities are on an accelerated decline. There is a general shortage of infrastructure, increased air, water and noise pollution, and a rash of illegal and unorganised structures cropping up everywhere. Increasingly, home-owners face problems reaching emergency services, finding adequate parking and traversing pothole-riddled roads,” says Sanjay Dutt, CEO – business at realty consultancy firm Jones Lang LaSalle.

“Given this depressing scenario, it has now been established that townships are the most suitable residential solution. The government is now encouraging the development of such townships to reduce pressure on urban areas and to improve infrastructure. Also, townships attract foreign direct investment and make overall economic sense,” says Dutt. Apart from FDI, integrated townships can also access extended commercial borrowings.

Integrated township projects also offer real estate developers an opportunity to cash in on the revival in demand for residential and commercial space. These projects are also part of an effort by these companies to reduce risk in their business model, as one vertical provides a cushion to another in case of tepid demand. As many as 24 expansive townships are being set up across India and are due for completion in the next couple of years.

“Integrated township projects are slowly gathering steam as the concept of walking to work is picking up among city dwellers. As a township project integrates residential, commercial and retail properties, this is the next phase of growth in the real estate industry,” says Venkat K Narayana, chief financial officer at Prestige Estates Projects. However, he pointed out that developers with considerable experience in the commercial and retail verticals would have an edge.

Prestige Estates recently launched Shanti Niketan in the Whitefield area of Bangalore. “While most of our residential space has been snapped up, bookings have just begun for our commercial space. We are also planning to come up with another integrated project in the next six to eight months,” says Narayana, adding that the operating margin for an integrated project was comparable with a purely residential one.

Others like Sobha Developers and Brigade Enterprises have also come up with similar projects. Top officials at Sobha said the company has an integrated housing project at Thrissur in Kerala, and the company is bullish about this emerging trend. Brigade Enterprises recently launched Brigade Gateway, which comprises residential, commercial and retail space.

Even city-based developers are planning projects of this kind in the near future. “We are planning to come up with an integrated township project in 2011 in Bangalore. This space holds great promise,” says Bharat Dhuppar, chief marketing officer at Mantri Developers. He said given the slow development of infrastructure projects and traffic congestion in cities, integrated township projects would be the next growth spot for the industry. “The concept will not only be popular in the metros, but also Tier-II & -III cities,” he adds.

An analyst with a real estate consultancy firm said the trend of launching integrated projects would continue in 2011 due to an upside in demand for both commercial and residential space. He also said large real estate players would like at least 10 per cent of the total portfolio in integrated space.

Anil Pharande, Chairman, Pharande Spaces, a Pune-based realty player that specialises in integrated residential projects, says, “Integrated residential projects counter the trend of people living in smaller, isolated pockets within larger cities, thereby reintroducing the possibility of community-based neighbourhoods. Residential properties in smaller, stand-alone projects do not have the same capacity to maintain and increase property investment value as integrated residential projects.”

What’s more, such townships also offer the prospect of higher appreciation, as these projects adhere to a pre-set development plan with regard to open spaces, communal amenities and common areas. This means the overall value of the location does not take a hit because of unrestricted developments that may crop up later.

“Since such integrated projects have their own infrastructure, they do not depend heavily on what the local municipal corporation delivers (or doesn’t deliver) in terms of sewage management, water supply and overall maintenance of the immediate surroundings. The maintenance of integrated residential projects is centralised. Also, since such residential projects have various levels of security to protect the entire project, homeowners are assured of much higher levels of safety for themselves, their families and possessions,” explains Anil Pharande.

One more critical factor is that as townships are centrally conceived and executed, there are no variations in construction standards. In unplanned localities that are so much a part of the property markets of India’s main cities, many developers with different construction ideologies and standards have projects standing cheek by jowl.

“The substandard construction of one project not only pulls down its own market value, but also that of those next to it. Two or three poorly designed and constructed buildings can cause the entire location’s market profile to collapse,” says Anil Pharande.

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For Pune builders, developing a project like Woodville is more than just a business proposition

I have often been asked why developers such as Pharande Spaces concentrate primarily on large, integrated residential property projects. After all, doesn’t it make more business sense for Pune builders to launch smaller projects?

Why don’t developers of large-format residential property schemes cash in for demand for more ordinary flats for sale in Pune? Here are some of the arguments I hear:

•    The developer’s construction costs for smaller residential property developments is much lower
•    They require a lot less land, and can be constructed in central areas where demand is high
•    They can benefit from whatever infrastructure already exists in the locality, so there’s no need to put in much more
•    They can be constructed much faster and also sell much faster to a ready clientele who are looking for flats for sale in Pune
•    There was demand for smaller residential projects even while the recession was on

Tempting arguments, for sure – but they represent the small picture.

•    True, integrated residential projects can only come into existence if the developer has considerable land parcels at his disposal. Even if he does, such land parcels are only available in areas like Pune’s Pimpri Chinchwad Municipal Corporation, which is not near the city center.
•    True, he must supply all the infrastructure and public utilities in such a residential project
•    True, there is a ‘wastage’ of develop-able area because such large residential developments, by necessity, call for huge open spaces
•    True, integrated residential projects take a much longer time to complete than smaller, stand-alone projects

However, this is a limited viewpoint. It does not factor in the most pressing requirements on the Pune residential property market – regulated urban development. The fact is – a multitude of smaller projects disfigure the face of a location, put its infrastructure under tremendous pressure and are usually overpriced because of ‘location value’. One look at the current property rates in Pune will confirm this – what you pay for in location, you lose in comfort and convenience.

In sharp contrast, well-planned integrated residential property schemes beautify, uplift and give value to a new location. Not only do they bring in their own infrastructure – despite being on the outskirts, they also provide residents with all the benefits and comforts of a more centralized location. The vast open areas provided in integrated residential projects are not wasted space – they are what spacious, dignified living is all about.

There is more. Because integrated residential projects have their own retail outlets, office complexes and entertainment facilities, they reduce commuting and transportation time and expense. In fact, they inject life into a new location and raise its value on the real estate market.

For the sake of an argument, let us consider the Woodsville project at Ravet in Pune’s PCMC area:

•    It is located next to a major arterial road that provides direct access to Pune city and the most prominent industrial hubs of the Pimpri Chinchwad MIDC
•    It is a self-contained and completely integrated residential project that has homes of every description and to suit every budget
•    It offers retail, healthcare and entertainment facilities to its residents
•    Like many other projects of its kind, it offers 360-degree, multi-level security to home owners

What smaller residential project in a city like Pune can offer so much to its residents within a single location?

Developers like Pharande Spaces focus on integrated residential developments because they positively transform the landscape and uphold all precepts of sustainable development.

Moreover, the new generation of large, integrated residential projects in Pimpri Chinchwad Municipal Corporation have made modern, fully-equipped and self-sufficient residential projects affordable to the middle class. No longer are such properties available only to moneyed HNIs and NRIs.

Thanks to this, even salaried individuals can buy a home in a project such as Woodsville or Celestial City, both of which offer well-defined living spaces, recreation facilities, office complexes, convenient retail establishments and a superior standard of living. These projects offer ultimate value for money to those who seek to buy property in Pune.

Which leads back to the original point. In a city like Pune, integrated residential schemes make more sense than smaller projects because they are the most modern and sustainable model of urban growth – and to a better way of living.

To own a home in one of them is an assurance of a lifestyle that cannot be replicated elsewhere in a crowded city. Developing such a project is more than a business proposition – it is an opportunity to contribute to the future of the city’s real estate market.

Is that not reason enough?

Anil Pharande is Vice President of CREDAI (Pune Metro) and Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

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