Pune International Convention Centre To Drive PCMC Real Estate

June 08, 2012  //  Posted by: Anil Pharande  //  Category: Commercial Property, International Convention Centre, Investment Tips, PCNTDA, Pimpri Chinchwad, Property Blogs, Pune, Pune Autombile Industry, Pune Real Estate

Historically, industrial convention centres have consistently proved to be giant economic drivers to local economies. There are significant economic benefits to the immediate and expanded communities in and around these centres. Delegates and exhibitors who vist these convention centres from out of town and other countries bring in huge amounts of revenue.

This flow of external capital into the location gives rise to a multiplier effect, because the revenue which is generated then proceeds to circulate through various other businesses in that area. An entirely new and vibrant supplier chain is established for the maintenance of hotels and facilities management companies that service these centres.

The revenue flow percolates down to the employees of these establishments, and down to local groceries and similar community-centric businesses. In other words, convention centres upgrade the entire demographic profile of the locations in which they are built.

The Pune International Exhibition and Convention Centre (PIECC) at Moshi in the Pimpri Chinchwad Municipal Corporation will number among Asia’s biggest industrial convention centres. It will covering a total of 240 acres and is being developed by the Pimpri-Chinchwad New Town Development Authority (PCNTDA) through a special purpose vehicle (SPV). The PCNTDA has a 94% stake in this project.

The PCNTDA has an immaculate track record for timely and well-planned development in the Pimpri chinchwad Municipal Corporation. Despite,certain initial delays, the fact that the PCNTDA is a majority stakeholder in the PIECC guarantees that this project will see completion. This convention centre is going to be a game-changer not only for the industrial belt in PCMC but for Pune in general.

The automobile industry in Pune will benefit most significantly from the availability of an international convention centre. This industry has been growing in leaps and bounds, with every national and international automobile giant now having a manufacturing plants in and around Pune.

Pune is now considered as India’s foremost automobile industry nexus and numbers among the world’s leading automotive centers. In fact, the Chakan-Talegaon region has emerged as one of the most vibrant automotive clusters on the face of the planet. The list of leading automobile manufacturers with plants in this region is a veritable Who’s Who os the automobile world:

  • Tata Motors – PCMC
  • Land Rover – PCMC
  • Bajaj Auto – Akurdi and Chakan
  • Mahindra Two-Wheelers (formerly Kinectic Motors) – PCMC
  • Mercedes-Benz – PCMC
  • General Motors – Talegaon
  • Volkswagen – Chakan
  • Mahindra & Mahindra – Chakan
  • Premier Motors – PCMC
  • Fiat – Upcoming at Ranjangaon

Obviously, the venue for the Pune International Exhibition and Convention Centre was chosen for its strategic location near these automotive giants. Once this convention centre is complete, Moshi in PCMC will become the natural hub for automobile conventions. This centre will have the capability of hosting conventions on an international scale, with a total of seven massive exhibition halls and a central open exhibition ground. It will have a staggering seating capacity of 20,000. In order to provide a complete global experience to the delegates, the convention centre will also have a five-star hotel, a golf course and a retail mall adjoining it.

A significant part of the land adjacent to the Pune International Exhibition and Convention Centre will be offered to private developers to build commercial and residential projects in Moshi. It can well be imagined what an effect such an advantageous location will have on the residential property prices in Moshi, PCMC. Obviously, the convention centre will generate massive white-collar employment, and the demand for quality housing around it will rise astronomically.

This makes the area around the Pune International Exhibition and Convention Centre one of the most important property investment hot-spots ever to have surfaced in Maharashtra. The effect that it will have on property prices will be more pronounced than even that of the Hinjewadi IT park.

Township projects such as Woodsville, which is located exactly opposite to the convention centre site, obviously have an early-mover advantage. In the years to come, the investment value of a home in such strategically located township projects in Moshi will rise astronomically.

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.

How Road Connectivity Leads To Real Estate Growth

May 15, 2012  //  Posted by: Anil Pharande  //  Category: Apartments, Builders, Buying Property, Construction, Developers, Healthcare, Hospitals, Infrastructure, Infrastructure, Investment Advice, Investment Tips, L-axis, Moshi, Municipal Corporation, PCMC, PCNTDA, Pimpri, Projects, Properties, Properties For Sale, Property Blogs, Property Buyers, Property Market, Property Rates, Pune, Pune Real Estate, Real Estate Investment, Real Estates, Residential Property

Anil Pharande, Chairman – Pharande Spaces & Vice President – CREDAI Pune Metro

The Spine Road is a monumental contribution to the PCMC real estate sector by the Pimpri Chinchwad New Township Development Authority (PCNTDA). This becomes evident when we study the benefits that this massive infrastructure initiative brings with it. The Spine Road is the latest initiative by PCNTDA’s focus on location-efficient development.

The PCMC Spine Road connects two major highways and provides an access focus for the residential, commercial and industrial centres in the PCMC. As the longest stand-alone road within the PCNTDA limits, it is a significant step forward in relieving traffic congestion on internal roads. It also features six lanes with cycle tracks, service roads and parking facilities, thereby vastly improving the quality of living for all residents living along its perimeter.

It is generally accepted that improved road connectivity is very important for real estate growth. Most property brokers will make a big case out of an area’s excellent road network and how this improves the appreciation value of a proposed property. But how exactly does this phenomenon work? What is the real ‘connection’ between better roads and better real estate values?

Road Connectivity And Quality Of Life

Fundamentally, major roads such as the Spine Road in PCMC reduce vehicle travel by cutting down the distance that needs to be traveled between destinations. This has a direct effect on residents in connected areas. With shorter distances, people can comfortably choose to travel public transport or two wheelers, thereby cutting down fuel expenses. This also decreases noise and air pollution in residential areas.

Improved road connectivity also improves the overall safety of a neighbourhoods. This is because it becomes easier for emergency services such as fire brigade and ambulances to reach them. Likewise, it is possible for residents to reach hospitals faster – this can sometimes make a difference between life and death.

An undertaking such as the PCMC Spine Road is also a blessing for employees working in the area’s numerous manufacturing and service industries. In Indian cities, the amount of time it takes to get to and from one’s workplace is an extremely important consideration. By allowing the residents of connected neighbourhoods to reach and return from their workplaces faster, the amount of time they can spend with their families increases significantly. The same paradigm applies to school-going children.

The Health ‘Connection’

Reduced travel time also reduces the incidence of various physical ailments as well as stress levels. Longer travel times give rise to higher exposure to traffic pollution and extreme climate. Several serious health problems such as deep vein thrombosis and lung infections have been directly linked to extended automobile travel on a regular basis.

Similarly, road rage and reckless driving are often the direct result of the traffic congestion caused by insufficient road linkages. Also, as road connectivity improves further, the shorter travel distances can encourage the use of health-positive travel modes such a bicycles.

The Personal Finance ‘Connection’

Ever-increasing fuel prices were once a concern only to the middle class – today, they have gone so high that even the more affluent classes are feeling the heat. Electric cars that can meet the travel requirements of a normal-sized family are still a distant dream. We hear that Tata Motors is developing a air-powered car, but it is unlikely that we will see such solutions on the roads for several more years to come. In the mean time, like it or not, we are dependent on fossil fuel-driven vehicles.

The magnitude of savings that are possible because of improved road connectivity must not be under-estimated. It is a known fact that the transportation expenses of residents in well-connected areas is lower; a lesser-known fact is that communities which live in areas without good road connectivity often spend between 10-15% of their monthly income on transportation alone. The figures rises proportionately to the number of vehicles the family operates.

The Real Estate ‘Connection’

These are the reasons why road connectivity has such a massive impact on real estate prices. Simply put, there is a higher demand for homes in well-connected areas because they equal an easier, safer, healthier and more cost-effective way of life. In this context, the arrival of the PCMC Spine Road has become a game-changer for the region’s real estate market.

The investment value of residential properties along the Spine Road has not been lost on investors, who are now making a beeline to residential developments in Moshi, which is one of the most prominent areas along this road.

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.

Sri Sri Ravishankar To Inaugurate SSRVM School At Woodsville On January 15, 2012

January 13, 2012  //  Posted by: Administration  //  Category: Integrated Townships, Moshi, PCMC, Pimpri Chinchwad, Schools, Schools, Sri Sri Ravishankar Vidya Mandir Trust, Sustainable Development, Township, Township Properties

PUNE, January 13 2012:  Sri Sri Ravishankar, the iconic spiritual guru and founder of the internationally acclaimed Art of Living spiritual lifestyle system, will personally inaugurate Sri Sri Ravishankar Vidya Mandir school at Woodsville, Moshi (Pimpri-Chinchwad) on January 15, 2012.

The inauguration and ‘bhoomi pujan’ ceremony will take place at 2.30 PM on January 15 at the school’s venue in Woodsville, a residential township project at Moshi in PCMC. Anil Pharande, Vice President of CREDAI Pune Metro and Chairman of leading township developers Pharande Spaces, will also be present as Shri Shri Ravishankarji conducts the ceremonial blessing of the school and addresses his followers and the school’s staff.

“The arrival of SSRVM in Pune’s Pimpri Chinchwad area is a landmark event in the history of a city which is known as the Oxford of the East,” says Anil Pharande. ”We are indeed honoured that Guruji has selected Woodsville as the place in which to launch this unique school, which will be a blessing to parents and children.”

The renowned spiritual leader, a staunch supporter and advocate of sustainable living, has personally selected Woodsville as SSRVM’s venue on the basis of its ecologically friendly configuration. Woodsville is Pimpri-Chinchwad’s most talked-about self-sustaining residential township.

The SSRVM educational model is a proven process of self-learning that builds life skills and nurtures leadership. It is staffed by highly qualified teachers who receive special orientation and training at Sri Sri Teachers Training Academy. In the words of H.H. Sri Sri Ravishankar, “Every parent would like to have a child whose personality shines wherever the child goes. It is the personality that is appreciated everywhere. Such pleasing personality is the main aim of this education.”

The educational system developed by Sri Sri Ravishankar employs an innovative and compassionate system of learning which features a curriculum for all-round development of its young students. The school’s syllabus is customized to NCERT guidelines and includes Sanskrit, Yoga, Karate, Sports, Dance, Music and Arts, which helps the child to blossom in all aspects of life. SSRVM is an initiative of the Art of Living Foundation, which has centres in more than 150 countries and enjoys a special consultative status with the United Nations Economic & Social Council of United Nations.

 

Township Property Mania Hits Pune

November 21, 2011  //  Posted by: Anil Pharande  //  Category: Affordable Housing, Apartments, Builders, Buying Property, Developers, Environment, Flats For Sale, Green Architechture, Homes, Housing, Infrastructure, Infrastructure, Integrated Residential Projects, Integrated Townships, Investment Tips, Mid-income housing, Moshi, PCMC, Pimpri, Pimpri Chinchwad, Pradhikaran, Pradhikaran Properties, Projects, Properties, Properties For Sale, Property Blogs, Property Buyers, Property Market, Property Search, Pune, Pune Real Estate, Ravet, Real Estates, Realty, Residential Property, Sustainable Development, Township, Township Properties

In Pune, something very new and exciting is happening on the residential real estate market. Where ordinary flats were once the most sought-after type of residential property, the trend is slowly but surely changing to a demand for township properties. The more discerning Punekars of today says that nothing less than the convenience and ambience of a township property will do.

Who are these people? Mostly representatives of the IT and manufacturing sectors. These, along with some other discerning professionals, have apparently become fed up with the congestion of the inner city, and the lack of amenities in the projects there. They are setting their sights on the spacious, green environment of areas beyond Aundh. Pimpri Chinchwad, with a special focus on the booming market in Pradhikaran properties, is especially in demand.

What is it about these township properties in the PCMC area that makes them so different from other available ones on the Pune property market? Well, one reason is that nothing within the suburbs of Pune can match the bliss of living in a township property. The mantra in these avant-garde resindetial projects in Pimpri Chinchwad is still ‘respect and enjoy Nature’. In the township properties in areas like Moshi and Ravet, green environment is carefully maintained and traffic congestion is unheard-of, despite the proximity of the Express Highway.

The environment is absolutely perfect for families to live in. There is so much demand for these properties that many prominent developers have snapped up prime land exclusively for the building of township properties. Other factors also add to the popularity of these townships – the Expressway, of course, is a vital one. The Expressway is the umbilical cord between Pune other major cities, beginning with Mumbai. In many ways, the Expressway is the lifeblood of Pune’s commercial progress. In addition, the nearby Mumbai-Bangalore Highway brings in further commercial growth and intercity connectivity.

With the kind of investment value that localities along these two major highways get, their popularity comes as no surprise. However, the Expressway has also brought about the existence of the Hinjewadi Infotech Park. The professionals that work there need homes close to their offices, and also privacy and peace in their time away from work. This has been another driving factor behind the township properties mania in the Pimpri-Chinchwad Municipal Corporation area. Obviously, another contributing factor is the Pimpri-Chinchwad industrial belt.

In the not-so-distant past, township properties were a residential genre reserved exclusively for the ultra rich. This has changed drastically with their rising popularity. The fact is, owning a township property in Pimpri Chinchwad has now become a feasible option for Mr. Everyman.

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.

Road Development: The Key To Pune’s Real Estate Growth

August 11, 2010  //  Posted by: Anil Pharande  //  Category: Administration, Apartments, Builders, Buying Property, Developers, Housing, Indian Homebuyers, Infrastructure, Investment Advice, Investment Tips, Mumbai Real Estate, Municipal Corporation, News, PCMC, PCNTDA, Pimpri, Pimpri Chinchwad, Plots, Pradhikaran, Pradhikaran Properties, Projects, Properties, Properties For Sale, Property Blogs, Property Buyers, Property Market, Property News, Pune, Ravet, Real Estate Investment, Real Estate News, Real Estates, Realty, Residential Property, Satellite Town, Township, Township Properties, Traffic, Transport

The Pimpri Chinchwad Municipal Corporation (PCMC) has been proactive in terms of a proper road network

The Pimpri Chinchwad Municipal Corporation (PCMC) has been proactive in terms of a proper road network

There are often comparisons made between the infrastructure of Mumbai and Pune. The popular consensus seems to be that both cities are equally challenged as far as supportive infrastructure is concerned.

This is inappropriate for two reasons – one, Mumbai’s growth pattern has been very different from Pune’s. The city has evolved into the country’s financial capital, and the pressures on it are enormous and overwhelming, considering the fact that a significant part of it is an island that cannot grow horizontally to accommodate the growing real estate demands.

Pune, on the other hand, has an advantage by virtue of the fact that it has been able to add to its borders by means of surrounding villages. This has served to decreased pressure on the central city and encourage an outward growth pattern.

The challenges on Pune’s infrastructure – particularly its road network – have more to do with the speed of this growth. While there are various proposals for roads and road widening, these have to be translated into real time to be effective.

The pockets of infrastructural under-development are the result of both developers and the Government concentrating on existing growth areas and sidelining those with high future potential. It is a known fact that no area can grow in terms of residential, commercial and retail real estate unless the necessary infrastructure is first put in place.

This is quite a common phenomenon that is the result of the principle of fastest returns almost instinctually followed by both developers and the Government. Bangalore, for instance, was initially not well planned for radial expansion.

The approach in this city was simple – where Information Technology projects went, residential projects followed. IT and ITeS, as business lines, are not dependent on a city’s CBD areas and can workably exist in areas where property prices are low.

Once such a project is firmly in place, residential, commercial and retail establishments follow. Since this kind of growth in no way follows a master plan, the result is haphazard pockets of growth. This naturally leads to the neglect of areas that have not been so favoured. The syndrome is also evident in the case of other industries such as manufacturing.

For The Lack Of A Road….

To identity another factor that has compromised Pune’s holistic growth in terms of real estate viability – the first masterplan for the city designated a much more progressive ‘roadmap’ for the city’s road network, while the second one is decidedly sotto voce on these. Also, key roads leading to new growth areas are not being put in place with the speed necessary to ensure that these new areas have the requisite connectivity.

The roads leading to Kharadi – a major real estate growth nexus – have not been put in place due to an inappropriately slow speed of development initiative. Similarly, the Eastern bypass has been at the proposal stage for many years. In these and various other instances, the result is compromised potential.

Case Study – Pradhikaran Phase 2, PCMC

In comparison, the Pimpri Chinchwad Municipal Corporation (PCMC) has been proactive in terms of a proper road network. This explains why there have been such spurts in growth and corresponding real estate values in this region. Considering how much the authorities have already achieved, it is distressing that certain pockets in the region still show signs of infrastructure deficit.

A case in point would be Phase 2 of the Pradhikaran area, which comes under the purview of the Pimpri Chinchwad New Town Development Authority (PCNTDA).

The Pharande Group, which has made significant land bank investments in Phase 2, across Sectors 4 and 6, had already launched residential projects in Pradhikaran’s Phase 1. Under the aegis of Anil Pharande, a massive mixed-use development is now shaping up in Phase 2.

This area is extremely important for overall growth of the region, since it will cater to a huge chunk of the middle income housing demand for PCMC-employed mid-management cadre. However, because of the lack of proper roads, only the Pharande Group and a handful of smaller developers have taken the risk of venturing into this area to open it up for future growth.

The Origin Of Mismatch

The Pimpri Chinchwad Municipal Corporation (PCMC) area was established as a satellite town to Pune in 1962, and it quickly grew as an industrial market. Since the travel time between Pune and PCMC presented a challenge, the authorities soon perceived an increasing need to provide housing for people who worked in this area. This led to the formation of the Pimpri Chinchwad New Town Development Authority, which began to develop housing for the PCMC workforces.

The constraints of octroi and sales tax caused most industries to start moving out of the corporation limits. This caused a boost in the growth of the outlying areas. Development is now gradually shifting away from the core areas of PCMC, and the areas between Bhosari and Chakan.

Generally, the road network in PCNTDA area is quite suitable. Currently, a 45 meter spine road that would connect Nashik highway to Mumbai Highway (at Nigdi) is being developed. However, the lack of direct road connectivity from this part to Chakan presents a lacuna that reflects on this location’s overall growth potential.

‘Poor Cousin’ Syndrome?

Chakan has already found favour by large-scale industries and Bhosari was already an established industrial area, since it had grown in tandem with other industrial areas in the PCMC. The quick progress of these two areas has attracted the bulk of road construction efforts, and away from the area known as Phase 2.

Paradoxically, Phase 2 offers the advantages of generous land availability and low real estate costs. It also has an enormous future market driver in the form of the International Convention Centre at Moshi, which is being jointly developed by the Maratha Chamber of Commerce and the PCMC.

This project is currently only in the proposal stage, but it will add immense value to this sector. When the ICC becomes operational, it will positively affect real estate value in the northern parts of the PCMC area, right up to Chakan.

Developers already active in this area have put the blueprint for its progress in place. However, the blueprint needs to be transferred from the drawing board to the shop floor.

A suitable road network connecting Phase 2 to Chakan and Bhosari could vastly improve its chances of catching up with these growth sectors – and of fulfilling its intended purpose as a new residential safety-valve for the increasing housing demand from the PCMC area.

Lacking – A ‘Potential Value’ Perspective

The potential of this key area apparently lacks from a recognition of its inherent future value. A closer look at its promise for the PCMC real estate market would very likely cause a more fast-paced development of its road network.

There are earlier precedents in Pune, wherein languishing areas were given fast-paced infrastructure upgrades because of an upcoming market catalyst. When the recent Youth Commonwealth Games loomed closer, the enhancement of Baner Road and Pashan Road were put on the fast track.

In the same manner, it is not unreasonable to anticipate that the PCNDTA will take cognizance of the fact that Pradhikaran’s Phase 2 is extremely important by virtue of the fact that strategically juxtaposed New Rajguru Nagar has now been identified as the location of Pune’s new airport.

This being the case, putting down adequate roads in this area will set the stage for immense future growth of this strategically placed locality.

Author: Mohammed Aslam is Head – Pune, Jones Lang LaSalle India.
This article may be reprinted with due credit to the author and a link back to PunePropertyBlog.com

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