Right time to buy flat in Pune? - Indian Real Estate Forum

30-11-07

Hi,
I am planning to buy 3BHK flat in Pune near Talegaon. Rate right now is Rs.1200-1300/sq.foot(it was Rs.600-700/sq.feet last year).But now the act of ULC(Urban Land Ceiling) has been cancelled by Maharashtra government(today only).I hear in news that due to cancellation of this law rates are expected to come down by 20-30%.
Will this law really affect the rates? Or they will continue to rise as that of last year?
What should I do? Should I go ahead to purchase the flat or should I hold my decision & wait for rates to come down?
I am confused, please advice.

Regards,
Bhushan.

04-12-07

Same is the case with me. I am really confused whether I should go ahead or wait.

Hetal · 05-12-07

Hi Friends,

Can't answer your query straight away. But I think this article from indianExpress ( Dec05, 2007) will definitely help you evaluate the prospects of investing in Pune.

Quote:

If any city in India can stake claim to be the visible manifestation of India’s 9 per cent growth model, it is Pune. It is a growth that strikes a parallel with what happened in Chinese provinces almost 15 years ago, more visible than even in Mumbai.

But unlike in China, where the growth engine was public sector investment, in Pune it is driven by private sector investments, with IT, auto components and real estate—not necessarily in that order—accounting for a lion share.

The nice part of the story ends here. For one, Pune has a history of sluggish civic development and this could severely affect the city’s metro ambitions (see box). The JNNURM, the Central scheme for renewal of urban infrastructure, sees Pune as a potential growth centre and has given it Rs 1,200 crore. Compare this with the Rs 2,700 crore that Mumbai got. Even more telling, entire Gujarat has been allocated just Rs 2,498 crore and Tamil Nadu Rs 2,083 crore.

But with all these funds headed Pune’s way, the outlook is still bleak. The first test will come in October 2008 when the city is expected to spruce up some of its infrastructure to be ready for the Commonwealth Youth Games. The knives are already out as the Pune Municipal Corporation has asked for the re-tendering of a Rs 190-crore road project, which will certainly put pressure on meeting the October 2008 deadline.

There is another glaring anomaly here. If one leaves aside the Central funds, there is a massive mismatch between the private sector investment that has come into the city and its periphery from the three sectors and what has come by way of public sector investment. Investment in city real estate in 2006-7 was Rs 2,600 crore and it went towards creating 2,60,00,000 sq ft of built-up space. Against this, the city administration—the Pune Municipal Corporation--managed only Rs 500 crore in capital investment.

“This year we’ve doubled the investment mark-up to Rs 1,000 crore. Still there is a mismatch as we have to consider scales being created by sectors other than real estate,” says Praveensinh Pardeshi, Pune Municipal Commissioner.

This comes, even as by the municipal corporation’s own admission, 107 of its conservancy staff died in the last two years trying to keep city clean—unclogging the manholes, incinerating the waste. The admission came in response to The Indian Express story that said 227 conservancy staff had died in duty in the past 30 months at an average age of 45 years due to work-induced illness. Alarmingly, the figures do not account for the contract labourers hired to do the dirty job and this could tell and even more horrifying story of city that has hit a rampant, unplanned growth button.

The deterioration of Pune metropolitan area and the lack of an integrated development model continues to be ignored by the authorities, says Christopher C Benninger, architect and urban planner, currently consultant to the remaking of Bhutanese capital Thimpu. “The main lacuna is clearly the absence of a metropolitan development authority—a professional entity with planning, urban design, environmental design, sanitary engineering design and road design capabilities as its constituents.

While the idea got a lot of lip service from leading politicians and administrators, even the initial steps have not been taken to create an authority,” says Benninger. Even as the votaries of a professional body steering the city towards a planned development underline the need to contract in more skills in the area of urban planning and design, with separate investment programming, project management and implementation wings, the contrary viewpoint is that the city will manage on its own, given the huge “social capital’ that Pune enjoys.

Pardeshi believes the city can still be saved, given the “deep, sustainable social capital” that’s in abundance here unlike in many other cities. “Pune is still a place that people want to settle down in, just as people like to in a small town in Switzerland or Japan. People in Pune still don’t want to abandon their ‘small’ city for the urban lure of neighbouring Mumbai,” he says.

As the hottest destination for IT, ITES and automobiles, and with its education amenities providing a skill human resource pool, not to talk of the clement weather it enjoys, Pune could well be India’s most happening city. Provided, that is, the city fathers take development seriously.

In the morass

In 1961, area under PMC was 138 sq km. As per Census 2001, this has grown to 244 sq km. The city limits may have expanded, but not civic infrastructure. Many projects have remained on paper:

• International airport: For over a decade, Pune has been pushing for a stand-alone international airport in place of the IAF-owned Lohegaon. The debate, however, has not been on how to acquire land, but on whether it should be at Chakan or an expanded Lohegaon

• Eastern Bypass: In 1976, the Centre proposed a four-lane Eastern bypass. This was a 34-km stretch from Katraj to Loni Kalbhor, bypassing the villages of Pisoli, Undri and Handewadi. 31 years later, project still stuck

• Integrated Road DEVELOPMENT Project: Maharashtra Road Development Corporation was to execute 33 works—road improvement, overbridges and some 15 flyovers.Three flyovers came up this year, most projects now repositioned for JNNURM funds

• Development Plan: The DP mentioned roads, amusement parks, parking lots. Much of the land earmarked has been encroached upon
• Metro Rail: For over two decades, metro rail discussed as solution to city’s traffic problems. Three routes identified only last month —Warje-Chinchwad (22 km), Shivajinagar-Kalyaninagar (13 km) and Agriculture College-Swargate (10 km). The way things stand, it may take another 10 years

amoldalvi · 05-12-07

hello budy

i am new fish in this reality forum but as per my openiun this right time
go ahead right now & best wishes for u

kondhana · 09-01-08

I heard the new scheme by lakeside in Talegaon fetched 2100+, which is becoming a norm here.

vinodmishra · 10-01-08

hi,
rather than thinking whether its right tim to buy property concentrate whether u need the property, if u need it then go ahead, as far as effect of repeal of Ulc is considered, i would like to add that maharastra was d last state to repeal Ulc, so in the states where ulc was already repealed did the prices fall, the answer is no, then how can it be assumed that it will fall in maharastra, dont be a fence sitter join the band wagon, or a time will come when the prices will become unaffordable........
hope this helps
Vinod

Manish Panchal · 03-03-08

dear sir,
Irrespective of the property rates, requesting you to pay attention to few points which are directly related to the area of the flat under refernce.
You have to face the cost of fulfilling your basic requirement to live in home, means the more the area more is home beautification cost.
Building material prises and various labours charges will remain almost stable, like carpenter's cost, furniture polishing cost, electrical luminaries, fixture n fittings cost, etc.
So you have to consider this basic cost v/s your flat cost which you have to keep ready or available before starting to live in a new home.

Experinece says it may vary between 10 to 25 % of the flat cost as per lot things and requirements are finalised alongwith break up in stages if not everything in one stage.

Regards

Ar Manish Panchal
Mulund East Mumbai

04-03-08

With the changing rupee to dollar ratio and a dent in India's software exports, will IT continue to drive Pune's real estate or will the city look for alternate drivers of commercial.

According to real estate consultants in the city, the strengthening of rupee has affected the small software companies a lot but the big IT giants will be able to weather the loss in exports. According to property consultant, SS Gill CMD of Gilson Realtors, Pune, "The big and established software companies will be able to sustain the loss but it has definitely impacted the small start ups and medium sized software companies in Pune. They may not be able to withstand the losses and some of them could even shut shop."

smittal · 21-03-08

I read all the postings in this thread, but couldn't get a fair idea if it is good to invest in property in Pune at this time. Market is very unpredictable, but the rates of the property are still high. The salaries aren't very high, and looks like the prices should come down, otherwise it will become hard for middle-class people to purchase property. I have just a general idea. Something similiar had happened sometime back, I think it was in 90s, when prices soared high because people were holding back and prices kept on increasing. But then after sometime when people stopped buying because of high interests rates of loan, prices automatically came down.

But economic and financial conditions have certainly changed for India in these few years, so not very sure if same thing will happen again or not.

Can someone advice what should I do, and if there is a better place to purchase property in Pune?

Thanks,
Shilpi.

tim · 02-04-08

Bhushan,

I feel theire are very less chances of prices coming down in pune. The hike in salaries of public sector would bring more buyers in market.

So if you are thinking of buying this is the right time, go ahead negotiate and grab it soon.

Regards,
Tim

30-11-07	#1
bhushan911 Unregistered User Posts: n/a	Right time to buy flat in Pune? Hi, I am planning to buy 3BHK flat in Pune near Talegaon. Rate right now is Rs.1200-1300/sq.foot(it was Rs.600-700/sq.feet last year).But now the act of ULC(Urban Land Ceiling) has been cancelled by Maharashtra government(today only).I hear in news that due to cancellation of this law rates are expected to come down by 20-30%. Will this law really affect the rates? Or they will continue to rise as that of last year? What should I do? Should I go ahead to purchase the flat or should I hold my decision & wait for rates to come down? I am confused, please advice. Regards, Bhushan.

05-12-07	#4
amoldalvi New Member Join Date: Aug 2007 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	pune property hello budy i am new fish in this reality forum but as per my openiun this right time go ahead right now & best wishes for u

09-01-08	#5
kondhana New Member Join Date: Jan 2008 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	New scheme in Talegaon fetched 2100+ I heard the new scheme by lakeside in Talegaon fetched 2100+, which is becoming a norm here.

10-01-08	#6
vinodmishra New Member Join Date: Jan 2008 Location: kalyan Posts: 20 Thanks: 0 Thanked 0 Times in 0 Posts	buying property hi, rather than thinking whether its right tim to buy property concentrate whether u need the property, if u need it then go ahead, as far as effect of repeal of Ulc is considered, i would like to add that maharastra was d last state to repeal Ulc, so in the states where ulc was already repealed did the prices fall, the answer is no, then how can it be assumed that it will fall in maharastra, dont be a fence sitter join the band wagon, or a time will come when the prices will become unaffordable........ hope this helps Vinod

03-03-08	#7
Manish Panchal New Member Join Date: Mar 2008 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	Ar Manish Panchal dear sir, Irrespective of the property rates, requesting you to pay attention to few points which are directly related to the area of the flat under refernce. You have to face the cost of fulfilling your basic requirement to live in home, means the more the area more is home beautification cost. Building material prises and various labours charges will remain almost stable, like carpenter's cost, furniture polishing cost, electrical luminaries, fixture n fittings cost, etc. So you have to consider this basic cost v/s your flat cost which you have to keep ready or available before starting to live in a new home. Experinece says it may vary between 10 to 25 % of the flat cost as per lot things and requirements are finalised alongwith break up in stages if not everything in one stage. Regards Ar Manish Panchal Mulund East Mumbai Last edited by julie; 04-03-08 at 12:08 PM.

04-12-07	#2
sonal_p_shah Unregistered User Posts: n/a	Same is the case with me. I am really confused whether I should go ahead or wait.

04-03-08	#8
geogonig Unregistered User Posts: n/a	Pune's Real Estate Market Resists IT Slowdown With the changing rupee to dollar ratio and a dent in India's software exports, will IT continue to drive Pune's real estate or will the city look for alternate drivers of commercial. According to real estate consultants in the city, the strengthening of rupee has affected the small software companies a lot but the big IT giants will be able to weather the loss in exports. According to property consultant, SS Gill CMD of Gilson Realtors, Pune, "The big and established software companies will be able to sustain the loss but it has definitely impacted the small start ups and medium sized software companies in Pune. They may not be able to withstand the losses and some of them could even shut shop." Last edited by julie; 04-03-08 at 12:08 PM.

21-03-08	#9
smittal New Member Join Date: Mar 2008 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	I read all the postings in this thread, but couldn't get a fair idea if it is good to invest in property in Pune at this time. Market is very unpredictable, but the rates of the property are still high. The salaries aren't very high, and looks like the prices should come down, otherwise it will become hard for middle-class people to purchase property. I have just a general idea. Something similiar had happened sometime back, I think it was in 90s, when prices soared high because people were holding back and prices kept on increasing. But then after sometime when people stopped buying because of high interests rates of loan, prices automatically came down. But economic and financial conditions have certainly changed for India in these few years, so not very sure if same thing will happen again or not. Can someone advice what should I do, and if there is a better place to purchase property in Pune? Thanks, Shilpi. Last edited by julie; 24-03-08 at 05:32 PM.

02-04-08	#10
tim New Member Join Date: Apr 2008 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	Rare chances of prices coming down in pune Bhushan, I feel theire are very less chances of prices coming down in pune. The hike in salaries of public sector would bring more buyers in market. So if you are thinking of buying this is the right time, go ahead negotiate and grab it soon. Regards, Tim

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Vat / Service tax for new Flat buyers in Mumbai	archana	Indian Property Laws, Disputes, Frauds	0	14-06-08 06:12 PM
Buying A Flat? Ask For Bpr	Pinnacle	Hyderabad	0	02-11-07 12:44 PM
Realty gets real: flat for Rs 10 lakh	Rashmi	Mumbai	0	11-06-07 03:32 PM
Flat registered in two names	nevil_m	General Real Estate Discussion	1	21-05-07 05:02 AM
buying of a flat by	somspullela	General Real Estate Discussion	2	14-05-07 05:13 PM