Why Developers Launch Projects Even In Slow Market Conditions

Kishor Pate

Top developers have a strategy of launching new projects even in a slow market, and there is sound logic behind this. There is always demand for residential projects at convenient locations and with good amenities. If the pricing of the project is also in line with what buyers are willing to pay, there is no reason why sales will not be generated. 

Market research confirms that sales are taking place, even if it is at a slower rate. These sales are happening for the right kinds of projects – it is projects in the wrong locations, with fewer or the wrong kinds of amenities and with the wrong pricing that are finding no takers.

As a matter of fact, prices of projects have been showing a gradually decreasing trend over the last one year. Developers are offering lucrative deals and discounts on their projects, thereby helping to create end-user markets rather than just pandering to investors, as had been the trend in the past.

Overall, it can be said that the residential real estate industry has reached its lowest trough both with regard to prices and sales. The only change that can now come to the market is a positive one, and the graph will begin rising upward from here onward, not least of all because the Indian economy has strengthened and will continue to gain in strength going forward.

The government is also extending more support to the real estate industry than ever before, and the cumulative results of these favourable circumstances will definitely be seen from this year onward. With India makes strong strides on the path of development, interest in real estate investment is going to increase steeply over the coming years.

Today, cities still accommodate only about 40% of the population in India. But with increasing economic growth, more and more people will shift to urban areas, spawning more and more demand for homes in all price ranges. Developers who continue to launch their projects even while the market is slow are investing in this future.

If we take a closer look at the unsold inventory of residential real estate in India today, the numbers are undoubtedly large. Nevertheless, there is no shortage of new launches scheduled. In fact, we will see even more residential supply hitting the market in 2016 than we saw in 2015. 

It is pertinent to note that most of the unsold projects in India today are the result of deficient planning on the part of their developers. They have chosen flawed or hopelessly futuristic locations where people are not interested in moving, and/or have included high-end amenities that drive up the overall cost beyond what buyers are willing to pay.

As we embark into 2016, we will see that the new residential launches are more aligned with the existing demand, both in terms of pricing and what they have to offer.

About the Author

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Ltd. is the driving force behind one of the most successful real estate development firms in Pune and beyond. Apart from its signature luxury homes towers and premium gated townships, AEHL has also launched highly successful affordable housing projects like Astonia Classic and Colori in Undri and the Mediterranean-style township Astonia Royale in Ambegaon.

Not In My Backyard - NIMBYism In Indian Real Estate

Kishor Pate

NIMBY is not a term we often hear in India, though it is quite a popular word (and a dynamic concept) in the West. That said, NIMBY - an acronym for 'Not In My Back Yard - is definitely an unspoken mind-set when it comes to residential real estate in India.

Basically, 'Nimbys' are residents of a locality of project who are opposed to the implementation of a certain initiative by the Government, industries or private developers in their neighbourhood. Classic examples in the Indian context are flyovers, chemical factories, power plants and in fact any kind of development that could conceivably obstruct the view, disrupt the peace or pollute the air.

 

‘Nimbyism’ does exist in the Indian real estate space, but the choices of opponents to certain developments within their neighbourhoods is generally quite restricted. The Indian real estate space is still largely unorganized, and problems such as encroachment, unauthorized structures and lack of scientific town planning are still the order of the day in most of our cities.

 

The concepts of regulated real estate development and macro-level town planning are beginning to take hold and are, in fact, already operational in cities like Chandigarh, Navi Mumbai and even in Pune. While this evolution is happening against a large backdrop of damage that already been done and is difficult to undo, this does not mean that 'Nimbyism' is a futile and impotent concept in India.

 

In Indian residential real estate, middle-class housing societies – administrative bodies comprised of residents within a registered housing complex – have the right to refuse unscheduled construction within the complex premises. That said, they have little or no control over what happens beyond the compound walls. In cities like Mumbai and Delhi, upscale housing complexes continue to co-exist cheek-to-jowl with slums and slapdash tenements. This is more or less accepted as a reality of life, since slums are often under the political protection.

 

The ultra-luxury segment presents a rather different picture. Indian cities do have their elite pockets, such as Lutyens Zone in Delhi, Nariman Point in Mumbai, Sahakar Nagar in Pune, Jubilee Hills in Hyderabad, and so on. In these areas, residents have a stronger voice over what happens in their immediate neighbourhoods – and they do raise them. This level of influence derives from a combination of factors - including the financial clout of the residents, the fact that the zones themselves are under the purview of stricter-than-usual zoning guidelines.

 

As such, Nimbyism is definitely not a negative concept - in fact, cities like Pune need a larger dose of it. Residents should have a say in what happens in their neighbourhoods. This is especially true if the developments they are opposing are taking place outside of the existing zoning laws and are serious threats to the health, harmony and safety. What is needed is more exacting city planning, which should ideally be part of the overall development plan for the city. Likewise, developers also have a responsibility towards ensuring the sanctity of the residential projects they create.

Article by Kishor Pate, CMD - Amit Enterprises Housing Ltd.

 

About The Author:

 

Kishor Pate, Chairman & Managing Director of Amit Enterprises Housing Limited, is the driving force behind one of the country's most successful real estate development firms in Pune and beyond. AEHL's many projects in Pune include its signature luxury homes towers and premium gated townships in Sahakarnagar and Ambegaon

Is it the Right Time To Take A Home Loan?

Since there are no prospects of home loan interest rates rationalizing over the mid-term, and price correction in the near future, it is the right time to avail of a home loan and purchase a property in Pune,  says Kishor Pate, CMD - Amit Enterprises Housing Ltd.
 
Because of the on-going economic uncertainties, many aspiring home owners in Pune are still hesitant about taking a home loan and buying a residence. One of the questions that people who seek to make this beautiful city their permanent home is whether it makes more sense to rent now and await a price correction.

For those who are thinking of renting a home in Pune, there are many aspects to consider. In the first place, the affordability of both rental and purchased property is highly location and project specific. To illustrate – someone in Pune who can afford to buy a home in Undri may not even be able to afford the rentals at Boat Club Road, Koregaon Park or Kalyaninagar.

Secondly, whether it makes more sense to rent rather than buy a property would also depend on one's future plans in a particular locality. Does one wish to settle down there, or is one also open to other areas? It definitely makes sense to rent a home while one is making up one's mind about a particular locality.

If an individual is certain of a locality in Pune and is committed to settling down there, the right time to buy a home is now. There are many projects available in the excellent new residential areas that have come up in Pune, and prices are still competitive. There will not be a correction in real estate prices in Pune, as demand for a movement of residential properties in the city is healthy.

The watch-and-wait policy is only valid if there are informed reasons for anticipating a correction in a certain locality. On the whole, property rates in Pune will either remain stable or appreciate, depending on the area. Also, there are no prospects of home loan interest rates rationalizing over the mid-term, and economic indicators suggest that inflation will continue to drive up costs.

Given that it is the right time to avail of a home loan and purchase a property in Pune, one still needs to consider the financial implications. As a thumb rule, an individual's home loan EMI should not exceed a rational percentage of his or her net monthly disposable income. Generally, EMIs can amount to 50% of monthly income.

However, home loans are not the only cause of debt in the contemporary context. People take out personal loans and have pre-existing debts, too. In other words, even a 'fair' EMI percentage could prove unaffordable. The 'ideal' EMI component can only be calculated vis-à-vis a debt-free person's salary. This would be between Rs. 1000-1200 per lakh.

People availing of home loans sometimes forget that they are under legal obligation to repay. There are numerous cases where borrowers have neglected to undertake a due diligence with regards to their financial capabilities and the suitability of the loan of which they have availed. As a result, they find themselves in debt traps and sometimes default on their repayments. Borrowers should stretch themselves only to the extent that they realistically foresee their financial position improving in a given time frame.

No home loan strategy should ever be based on anticipated financial windfalls as a means to pay off the loan. It should be based on realistic factors such as reasonable salary hikes and maturing of insurance policies and investments. If one anticipates a salary hike, even if this amounts to only a certain annual increase, one can consider a 'step-up' option for the existing home loan. Here, the borrower pays a lower EMI initially and steps up the repayment of the home loan in proportion to the assumed percentage increase in income.

How To Succeed In Property Investment

Getting into real estate investment without a proper understanding of what you aim to achieve is not advisable. There are many risks involved in real estate investment. However, with the right data and advice, you can definitely succeed in property investment, says Kishor Pate, CMD - Amit Enterprises Housing Ltd, who explains the nuances of realty investment.

 

To begin with, you should know what the odds are. The fact is that the chances for inexperienced property investors to either succeed or lose a lot of money are more or less evenly balanced. The likelihood of suffering a loss is greater if the investor does not have a good idea of the state of the local property market.

Before investing in property, make sure that you have enough insurance. Many investors who have succeeded in the property arena safeguard their investments by floating a nominal limited liability company for their activities. This is certainly an option, but not really a necessity unless you are playing for very high stakes and investing in multiple properties.

Advice To End-User Investors

Property investors actually fall into two broad categories: end users and pure investors. That's right - even end users can technically be described as investors in some cases. These individuals seek to make a percentage of profit on properties that they are themselves occupying. This may involve partial rental or sale of a home or office, retail or factory space. This is not a very common practice, and is usually seen only in cases where the part of the property being rented out or sold would otherwise remain idle and non-productive.

A more rewarding option is the sale of the entire property. This is sometimes done for reasons other than investment - the seller may be seeking larger or more luxurious premises, may be in the process of relocation, or may not be satisfied with the property for other reasons. There may also be a need to downgrade on certain expenses such as maintenance costs. If the sale of such a property is need-based, the profitability usually reduces since the seller needs to cash in within a limited period.

The kind of profit an end user can make on the sale of a property depends on the age and state of the property, its location and its inherent value on the market. A residence purchased five or ten years ago will have appreciated in value for the simple reason that property rates are constantly increasing. The value of the property will be even higher if the location is one in high demand.

The price a 'second-hand' property will fetch will also depend on whether or not it is well maintained, the facilities it offers, the area it is located in, etc.

Advice To Pure Investors

Exclusive or pure investors buy property for the exclusive purpose of earning a profit on them; they do not utilize the estate personally. The properties in question can be residential (flats, bungalows, row houses, duplexes, etc.), commercial properties (offices, factory sheds, etc.), retail (e.g. mall space) and non-developed or partially developed land.

Pure investors have a better chance of making a profit in their dealings simply because their options are wider. There is also no immediacy or urgency involved, since the basic objective is profit.
Investors of this kind should keep certain guidelines in mind:

• Location is everything. Even if rates are steeper in a preferred area, go for it. It will pay rich dividends in the final analysis.
• It is always more profitable to invest in properties under construction or still in the planning stage. By the date of actual completion, rates will tend to be higher.
• If one chooses to invest in residential real estate, the first preference should be towards flats that are located on the first floor. They should offer a good view and ventilation and, ideally, the use of a swimming pool, clubhouse and other trendy facilities. They should also be backed by adequate parking facilities. Most buyers do not make compromises on this last factor, even if they give consideration to the others. 
• Choose to invest in properties by reputable developers. The very name of a famous builder makes a definite difference on the bottom-line of the sales deed.

A quick note on ready for possession properties. Certain dynamics of the property market remain constant, so a profit is still possible. However, a 'readymade' property bought for the purpose of investment will have to be given sufficient time to appreciate in value. Also, certain modifications specific to a potential customer's needs may have to be made. The cost that this involves would have to be adjusted in the final amount.

Finally, if you are new at property investment and are utilizing a housing/investment loan in order to invest in property, ensure that the ratio of self-finance-to-loan amount is conducive to a future profit. Double-check all legal documents.

Property investment is not a game of blind man's bluff. Fortunes can be lost for many reasons - spurious documentation, faulty judgment, market crashes and other unforeseen circumstances. There are a number of bases that need to be covered to reduce the risk factor.

How To Succeed In Property Investment

The likelihood of suffering a loss is greater if a property investor does not have a good idea of the state of the local property market,feels Kishor Pate, CMD, Amit Enterprises Housing Ltd.

Getting into real estate investment without a proper understanding of what you aim to achieve is not advisable. There are many risks involved in real estate investment. However, with the right data and advice, you can definitely succeed in property investment. Here is a general blueprint.

To begin, you should know what the odds are. The fact is that the chances for inexperienced property investors to either succeed or lose a lot of money are more or less evenly balanced. The likelihood of suffering a loss is greater if the investor does not have a good idea of the state of the local property market.
Before investing in property, make sure that you have enough insurance. Many investors who have succeeded in the property arena safeguard their investments by floating a nominal limited liability company for their activities. This is certainly an option, but not really a necessity unless you are playing for very high stakes and investing in multiple properties.

Advice To End-User Investors

Property investors actually fall into two broad categories: end users and pure investors. That's right - even end users can technically be described as investors in some cases. These individuals seek to make a percentage of profit on properties that they are themselves occupying. This may involve partial rental or sale of a home or office, retail or factory space. This is not a very common practice, and is usually seen only in cases where the the property is of larger proportions and the part being being rented out or sold would otherwise remain idle and non-productive.

More commonly, an end user seeks to sell the entire property. This is usually done for reasons other than returns on investment - the seller may be seeking larger or more luxurious premises, may be in the process of relocation, or may not be satisfied with the property for other reasons. There may also be a need to downgrade on certain expenses such as maintenance costs. If the sale of such a property is need-based, the profitability usually reduces since the seller needs to cash in within a limited period.

The kind of profit an end user can make on the sale of a property depends on the age and state of the property, its location and its inherent value on the market. A residence purchased five or ten years ago will have appreciated in value for the simple reason that property rates are constantly increasing. The value of the property will be even higher if the location is one in high demand. However, the price that a property which was in use until the time it is put on the market will  fetch also depends on whether or not it is well maintained, whether or not the owner upgraded certain features to make it more attractive to buyers, etc.

Advice To Pure Investors

Exclusive or pure investors buy property for the exclusive purpose of earning a profit on them; they do not utilize the estate personally. The properties in question can be residential (flats, bungalows, row houses, duplexes, etc.), commercial properties (offices, factory sheds, etc.), retail (e.g. mall space) and non-developed or partially developed land.

Pure investors have a better chance of making a profit in their dealings simply because their options are wider. There is also no immediacy or urgency involved, since the basic objective is profit. Since they do not intend to occupy the premises themselves, they can rent out the property until the time when they intend to sell it off at appreciated rates.

Investors of this kind should keep certain guidelines in mind:

• Location is everything. Even if rates are steeper in a preferred area, go for it. It will pay rich dividends in the final analysis
• It is always more profitable to invest in properties under construction or still in the planning stage. By the date of actual completion, rates will tend to be higher
• If one chooses to invest in residential real estate, the first preference should be towards flats that are located on the first floor. They should offer a good view and ventilation and, ideally, the use of a swimming pool, clubhouse and other trendy facilities. They should also be backed by adequate parking facilities. Most buyers do not make compromises on this last factor, even if they give consideration to the others
• Choose to invest in properties by reputable developers. The very name of a famous builder makes a definite difference on the bottom-line of the sales deed.

A quick note on ready for possession properties. Certain dynamics of the property market remain constant, so a profit is still possible. However, a 'readymade' property bought for the purpose of investment will have to be given sufficient time to appreciate in value. Also, certain modifications specific to a potential customer's needs may have to be made. The cost that this involves would have to be adjusted in the final amount.

Finally, if you are new at property investment and are utilizing a housing/investment loan in order to invest in property, ensure that the ratio of self-finance-to-loan amount is conducive to a future profit. Also, double-check all legal documents. Property investment is not a game of blind man's bluff.

Fortunes can be lost for many reasons, including spurious or incomplete documentation, faulty judgment and dealing with fly-by-night developers. There are a number of bases that need to be covered to reduce the risk factor.

Changing Demographics Boosting Pune Real Estate Demand

Pune is no longer just a Pensioner's Paradise (though it still is the number one city of choice for retiring people in Maharashtra). 

At least three other factors now define Pune - the growth of the Information Technology, the massive spread of organized retail and the city's changing demographics. The last factor has had a significant impact on the demand for real estate in Pune, both in terms of sizes and types of homes, feels Kishor Pate, CMD - Amit Enterprises Housing Ltd.

Until the late 1980s, residential real estate demand in Pune was driven largely by people who were working in a rather laid-back services industry. The modus operandi for home purchase in those years predominantly revolved around saving up a sizeable financial corpus and purchasing whatever home was affordable in that budget, preferably with little or no leverage.

Pay scales were moderate to low, and a comparison with the far more favourable pay scales prevalent in Mumbai was inevitable. As a result, there was a more or less constant flight of talent and capital from Pune to Mumbai. At the same time, lack of international employment opportunities prevented Pune's qualified youth from exploring their fortunes abroad.

As a result, the city's residential real estate market catered to a very basic level of requirements. There was little incentive for developers to be adventurous in unit sizes, specifications and locations. Property rates - and therefore property investment potential - remained low as the city awaited new market triggers.

Then, in 1990, Pune began to emerge as a destination for Information Technology companies. At first, this was limited to BPOs who sought to capitalize on Pune's considerable English-speaking manpower and its low property rates. Nevertheless, the economic impact was visible almost immediately. Young people who, in the previously existing scenario, would not have reached any kind of impressive earning capacity before their mid-thirties began earning hitherto unheard-of salaries at the ages of 20-24.

This, coupled with the traditional desire for home ownership and ready availability of home loans, had a 360-degree effect on the requirement for homes in Pune. It also had an impact in terms of locations. IT/ITES companies prefer to set up shop in the less expensive outskirts of a city, and people who work in these industries prefer to live close to their workplaces. With the emergence of Hinjewadi, areas around it suddenly sprang into sharp focus and demand for more central areas began slowing down.

The effect of the It revolution on Pune's real estate market has indeed been tremendous. Today, Pune's developers are catering to an entirely different set of demographics than they did 15-20 years ago. The onus is now large flats with ultra-modern amenities, and on locations which offer fast access to the city's IT hubs. Simultaneously, the MIDC in Pimpri-Chinchwad is boosting demand for homes in its vicinity, driven by well-paid employees from those industries.

Today, the annual demand for homes in Pune is close to 46000 units, where it was less than 20000 units per annum just 15-20 years ago. While Mumbai is staggering under the weight of unsold units all across the city, supply and absorption of homes in Pune continues to make both property development and property investment eminently viable. 

Even in such a vibrant market environment, Pune's property rates remain relatively rational....home ownership in this city is a dream which can be translated into reality.

Real Estate Development: Staying Ahead In Challenging Times

In a slow economic environment, the only way in which to grow one’s business is by taking it on a war-footing. Conducting business on a war footing can be defined as being ready and prepared to take on or sustain war.

A related concept is ‘war economy’, which is a term used to describe the steps undertaken by an entity to mobilise its economy and resources for war production. 

However, in the context of real estate development, going on a war-footing quite simply means assuming a mind-set that focuses on producing, mobilising and allocating resources to not only sustain but exponentially grow business, says Kishor Pate, CMD – Amit Enterprises Housing Ltd..

Get Out Of Denial Mode

There is a problem and it is not going to go away by assuming an ostrich-like attitude to it. The best way to deal with an economic crisis is to admit and accept that the crisis prevails. The real estate company – from leadership to employees – should not be in denial of the situation.

Get Into Innovation Mode

In times of economic uncertainty, real estate companies rely on innovations in marketing, sales and customer service to maintain and to expand market share. One of the prerequisites for running a successful real estate development company in such times is offering clients that decisive bit of extra that clearly defines the products as superior, and going the extra mile on pre-sale as well as after-sale service.

Know Your Opponents

To win a war, one must know one’s own strengths but also those of one’s competitors. Real estate is a highly competitive business, and it is necessary to evaluate the competition on a regular basis. This will help in defining success strategies.

Change The Game Plan

In order to retain and increase market share in challenging times, real estate developers need to adapt by changing business models which are no longer working. A 360-degree approach change to capitalize on the prevailing market condition has helped many real estate companies to not only survive but also retain their market leadership.

Ramp Up On Employee Management

In a slow market environment, real estate developers must take advantage of the fact that this is, in fact, the ideal time to recruit the most talented people. Management needs to open their ears to ideas on how business can be improved which emanate from within the ranks. Creating ‘think tank’ groups is an ideal way to harness the collective power of mind merge.

Study The Market Like Never Before

In a challenging business environment, it is extremely necessary to develop greater insights about one’s customers, the manner in which the business is changing and what kinds of new technologies can be adopted.

One can then develop frameworks that clearly indicate where clients need better services, and address those needs in a proactive manner. The mantra needs to be ‘service improvements’ rather than ‘business improvement’, because improved business is a direct outcome of improved services.

In today’s times, every real estate development company needs to follow the strategies that have historically worked for businesses that set out to grow in a competitive market:

• Identify and focus on your ideal target market – then strategically broaden your horizons
• Cultivate a and grow a comprehensive database of prospects, vendors, past customers and future prospects
• Distinguish yourself from the competition – extend exceptional customer service. Under-promise and over-deliver
• Communicate with your target market on a consistent basis. Do not ignore the strengths of the competition, but articulate how you are different.

Stay invested in Pune Luxury Property

Kishor Pate

During 2013, the investment potential for residential properties in the financial capital of Mumbai remained largely flat and unexciting. Most serious property investors in Mumbai who chose residential property are now content to exit with moderate profits.

Pune, on the other hand, showed an almost uniform appreciation of 14-16% in property prices. Vacancy levels in Pune stand between 20-22%, while in Mumbai they are close to 35%. As a result, investors are staying invested in Pune, says Kishor Pate, CMD - Amit Enterprises Housing Ltd.

One question being asked by the real estate investors in Pune is whether they should prefer mid-income or luxury housing? To be sure, Pune has a number of options in both segments. Mid-income apartments are definitely the faster-moving product on the market. However, luxury housing in Pune has been getting a lot of exposure of late, mainly because it is a much more vibrant segment in this city than in Mumbai.

 

It has been argued that Pune has seen far too many luxury projects being launched in the last two to three years. However, the fact is that these projects are not aimed primarily at property investors but at NRI and HNI buyers who are purchasing such homes for personal use. Property investors focused on Pune have always been more interested in acquiring mid-range flats which they can dispose of faster. This is a limited perspective, usually brought on my budget constraints.  

There is, in fact, a very high demand for luxury property in Pune from self-use buyers, which is why developers continue to see sense in launching premium housing. It must be remembered that as long as there is demand, supply will follow. And as long as the demand is from buyers who wish to own such properties for personal use, there is no glut on the market - these units will not be put up for sale again for a very long time.

For this reason, investment in luxury property in Pune does make sense for long-term investors. These are premium offerings in locations which will eventually not be able to accommodate further development. However, it is a play which requires high investment power and the ability to hold on to the property for at least five to seven years. After such a period, the real estate development potential of a location which is popular today will be almost exhausted and demand will begin peaking.

There is no doubt that demand for luxury housing in Pune is very sustainable. An increasing number of multinational companies are recognizing Pune's unique advantages in terms of trained manpower, cheaper real estate costs and reduced logistical hassles. The result is that more and more high-paying jobs are being created every year, which leads to a steady demand for high-end homes. At the same time, more and more NRIs from Pune who have completed their high-paying tenures abroad are returning every year.

Obviously, luxury homes in key areas such as Aundh, Baner, Sahakarnagar, Kalyaninagar and Viman Nagar will become increasingly valuable over time. But within a span of five to seven years, even newer areas will have been made valuable because of increased infrastructure and accelerated saturation. Investing in a luxury property in such an area today can pay off handsomely over the long term.

Alu-Form technology for stronger homes in less price

The Alu-Form system is a revolutionary innovation in construction technology that allows for the speedy, accurate and highly consistent casting of all internal and external walls, columns, beams, floor slabs, stairs and other parts of a concrete building. It is an integrated system which merges the wall and slab panels into a seamless unit. With a drastic reduction of form-jointed sections, the end products have superior resilience to wear, tear and degradation.

"At Amit Enterprises Housing Ltd, we are engaged in a constant quest for innovative methods of delivering quality homes to our customers. One aspect of this quest is finding and implementing new methods of cost-effective, eco-friendly, high-grade construction. We see no reason why homebuyers should compromise on quality when they approach us for homes that fit their budgets. These factors, along with our continuing commitment to the principles and practice of sustainable development, have logically led to our adoption of Alu-Form construction technology in our projects. This extremely progressive technology is now being used in two of our projects in Pune and also one project in Nasik," says Kishor Pate, CMD – Amit Enterprises Housing Ltd.

The Alu-Form Construction Method

Using the building’s architectural blueprint as a guideline, highly resilient aluminium panels are pre-designed for all concrete elements of the building’s superstructure. Alu-Form technology allows internal electrical fittings and plumbing to be incorporated with a high degree of design efficiency, and as part of the overall building plan. This factor reduces the probability of electrical and plumbing failures. On the rare occasions when they do occur, such problems can be quickly isolated and fixed.

This contributes to the overall cost-effectiveness of owning a home constructed with Alu-Form technology. Moreover, the use of this construction technology vastly reduces the chance of on-site mishaps, making it one of the safest systems for building construction currently available.

Construction Site

Alu-Form construction technology involves extremely efficient, light-weight and flexible materials and cuts down on the need for messy brickwork, concrete leakage and the use of conventional, polluting construction equipment. It is therefore one of the most environmentally friendly construction techniques on the market

Significantly, Alu-Form technology puts an end to the problems of construction irregularities and asymmetrical aesthetics which plague even the best of projects. The finished units are flawlessly balanced and streamlined, providing a finished and sophisticated look and feel.

A Giant Step Towards Affordable Housing

The basic equipment used in Alu-Form construction technology can be reused over upto 300 times, which means that there is significantly reduced wastage. The implied savings during the construction process can then be passed on to buyers into the finished product, making Alu-Form construction technology one of the most viable means of delivering budget housing in cities like Pune.

Since it involves less skilled labour and conventional construction materials, it is ideally suited for the speedy completion of affordably priced homes. The adoption of this revolutionary construction technology is a vital step forward in making budget housing available within market-viable timelines. It will play an extremely important role in bringing India a step closer towards meeting its massive shortfall of affordable housing.

Themed Luxury Homes Gain Ground In Pune

Developers of residential projects in Pune are increasingly challenged by buyers' rapidly evolving tastes and preferences in luxury housing. A decade ago, luxury housing in Pune was mainly about larger spaces, fancy facades and amenities which were considered modern back then. 

Today, exposure to international concepts in luxury homes has changes the very perception of what really constitutes 'luxury', says Kishor Pate, CMD - Amit Enterprises Housing Ltd. 

Indian residential developers have already tackled various themes for their luxury projects. Among them, the sports theme has been an enduring one. Areas in Pune like Balewadi and Gahunje on the Mumbai-Pune Expressway have seen their share of projects that bask in the reflected glory of the sports stadia there. However, there are limitations to this theme - not every luxury home buyer is a sports enthusiast.

For those who are not but still seek a radically different lifestyle, the country-based theme holds far more fascination. For instance, the Mediterranean theme has seen quite a bit of action in India. In the man-made hill station of Lavasa, an entire mountain range is being transformed to evoke the peaceful grandeur of Venice. HCC has been largely successful in achieving this.

Nevertheless, Lavasa's distance from Pune is not really suitable for themed home seekers professionally active within Pune. Meanwhile, the desire for themed homes in Pune continues to grow. The country-specific themed homes trend has already caught on with luxury home buyers in Mumbai, Bangalore, Hyderabad, Chennai - and Pune has not been left behind.

This is not hard to understand. Most of Pune's HNIs are inveterate international travelers. Their world view is commensurately large. It is  not possible to visit a country like Singapore or Greece without bringing indelible memories back home. This creates a yearning to live in an evironment which reflects both the architectural styles and the lifestyles witnessed in those countries.

Singapore, in particular, is a country which almost every Puneite with an appetite for world travel has seen - in many cases, on a fairly regular basis. Many of Pune's industrialists and technocrats have business interests in Singapore - a country defined by both natural and man-made beauty, orderliness and security. Their affinity for the 'Singapore life' is a ground reality for them... and yet, Pune is the city they would rather call home.

This was the fact that inspired Amit Enterprises Housing Ltd. to launch Bloomfield, the multiple award-winning Singapore-themed luxury homes projects in serene Ambegaon. This immensely successful project offers luxurious bungalows, villas and flats in a scheme which draws inspiration from Singapore’s ethnic, yet cosmopolitan lifestyle. In fact, legendary cricketer Sachin Tendulkar himself owns a luxurious bungalow at Bloomfield - but one does not need to be a legend to own a home there.

The trend for themed homes in India is bound to increase as more and more luxury home buyers look for unique points of differentiation in projects. Something in all of us is constantly reaching out to concepts and lifestyles from beyond our borders, even as we gain in appreciation for the merits of being an Indian on Indian soil. 

As a result, the demand for themed homes among NRIs hailing from Pune particularly noteworthy. After all, such projects allow them to replicate the lifestyles they have grown accustomed to abroad - back home.

Infrastructure Status for Affordable Housing

When affordable housing sector gets infrastructure status, the Government will provide tax benefits, and institutional lending to that segment also eases. Banks are directed to increase lending to the sector and companies engaged in the segment can also raise bonds to generate funding for their projects, says Kishor Pate, CMD of Amit Enterprises Housing Ltd.

In February of this year, Union Housing Minister Ajay Maken had indicated that the Centre is considering the possibility of according infrastructure status to affordable housing. While we have still not been given greater clarity on the progress of this initiative, it is certainly a great need of the hour for India’s larger cities.

As a real estate segment, affordable housing has been languishing for a long time, even though it is the very segment in which the highest demand exists. The constant hype about the rising fortunes of India’s fast-growing affluent class has ignored the fact that most Indians still cannot afford to buy their own homes. This is true even for the original inhabitants of rural areas that have been added to city limits.

So far, infrastructure status was given only to industries and companies active in building highways, ports, airports, Metro rail systems, etc. Real estate in any form has so far not been extended these benefits. When an industry is given infrastructure status, it basically means that the Government has recognized it as a necessary sector which caters to the general good of the nation.

By virtue of this, it becomes eligible for various incentives and subsidies at the Central and State level. When a segment of housing gets infrastructure status, the Government provides tax benefits, and institutional lending to that segment also eases. Banks are directed to increase lending to the sector, and companies engaged in the segment can also raise bonds to generate funding for their projects.

However, it should also be noted that companies enjoying the benefits of infrastructure status eventually wind up paying more taxes. This is because the incentives that make the creation of affordable housing more viable for them also lead to higher earnings, which are naturally taxable.

Nevertheless, the good news is that this initiative – when implemented – will boost investments flows both from domestic and foreign investors, thereby increasing supply. Increased supply results in higher competitiveness and helps keep prices down.

Pune's New 'Green Living' Communities

India is now seeing a strong trend in 'smart' and 'green' homes, which have high levels of lifestyle quotient attached to them, says Kishor Pate, CMD - Amit Enterprises Housing Ltd.

Over the last decade, lifestyle has evolved as an important and often decisive factor in the Indian real estate industry. With the increasing presence of the IT / ITeS sector in many cities of the country, a large segment of Indian home buyers have entered a higher level of affordability and therefore tastes in homes. This has led to a greater emphasis on larger sizes, evolved ambience and interior décor in the choice of properties. India is now seeing a strong trend in 'smart' and 'green' homes, which have high levels of lifestyle quotient attached to them.

 

For an increasing number of Indians, the focus of home buying has now shifted from functionality and inflexible budgets to lifestyle homes. Comfort, convenience and environmental awareness and responsibility play an important part in home buying today. Likewise, privacy and self-sufficiency are also part of the new mantra.

 

Home buyers in India who have been exposed to residential real estate trends in countries such as the US, UK, Singapore, Australia and Canada now wish to emulate the developed world's focus on sustainable living. Among other things, this has resulted in an increasing demand for green homes. Many developers now focus on bringing the world’s contemporary residential concepts to India - and projects with green living features are in increasing demand.

Green homes are more than just a prestige tag. Residential projects that have been designed and constructed on such lines ensure the lowest possible environmental impact of the building and its premises during the entire project's life-cycle. The result is reduced energy consumption, pollution and waste generation.

Interestingly, the fast-emerging concept of green homes is having a visible socio-economic impact on the neighbourhoods which are thus created. Inhabitants of environmentally sustainable residential projects are aware that the onus of maintaining the overall sustainability quotient of the project is not solely on the developers and the infrastructure and facilitation provided. They are aware that true green living requires a new mind-set and a new lifestyle, as well.

The whole concept of green homes is admittedly still in its infancy in India. However, if we take the city of Pune as a case in point, it actually emerges that there is now an annual increase of 10-15% increase in home buyers who will not settle for anything less. These homebuyers are committed to the health of their families, exercising their option of wasting less energy and towards preserving the city's environment for the future generations.

As a result, more and more green home projects in Pune are now actually populated by inhabitants who passionately believe in and adhere to sustainable living concepts. In a market where many of Pune's neighbourhoods were previously tailored according to professions, income brackets and social status, today we are talking about an entirely new and highly progressive selection process whwrein entire residential communities take up the cause of environmental sustainability.