Pune: Infrastructure To Drive Realty In Wagholi

Wagholi is now a days much  sought after residential destination in Pune now. However, still being in its nascent stages of growth, the infrastructure in the area needs to be upgraded. Sumeet Bhatia, Director, Pune, Cushman and Wakefield, explains, “Since Wagholi is not under Pune Municipal Corporation, the infrastructure provided has been limited and therefore it is still grappling with issues over water and electricity.”

“However, the locality has been witnessing some developments off-late. The Nagar road has been widened to six lanes. Also, the area is proposed to be a tangent to the ring road which will be planned to surround the city,” he adds.
In addition, the road connecting Wagholi to Eon IT Park, which goes through the Nagar Road, is under construction. Another flyover is proposed on the road connecting Wagholi to Shikrapur in the opposite direction.

Swift connectivity and public transport systems have played a major role in enhancing the real estate market along in this belt. Located near Lohegaon airport, the stretch offers excellent connectivity by virtue of regular bus routes and a much-improved road network. It can be easily reached from the airport as well as the railway station.

Wagholi is just 5  kilometer away from the Pune Airport located between Viman Nagar and Lohegaon and about eight kilometers from Pune railway station. Also, Vithalrao Vandekar Road and East Avenue provide easy connectivity to the National Highway 4.

Numerous such developments have enhanced the reality

prospects of the belt from Viman Nagar to Wagholi. With more infrastructure projects in the pipeline, the area is set to be one of the most preferred residential options in the city.

Can a Vastu prevent home theft

Can a vastu safeguard your house from burglaries? Here are some Vastu tips and guide to prevent a home burglary.

Vastu shastra, the ancient Indian science emphasis on balancing the energy forces that move around in our houses at large. Vastu shastra has clearly drafted guidelines as listed in our epics and Vedas regarding various situations. Any building or house which is not constructed as per Vastu compliance or has an obvious defect as per Vastu shastra principles can bring bad luck, bad health and even theft hurting the house owners and its residents. There are various Vastu principles that require simple changes to the design and can ensure a safe home for intruders and unwanted theft. Let us take a look at some of the vastu guidelines that can help us safeguard our homes and offices.

Vastu direction for valuables: Keeping valuables and currency in the North West corner of one’s houses is not recommended as per Vastu. If you have a safe or a locker located in the North West corner of your house, it is time to change the direction of the safe or locker immediately. North western direction as per Vastu principles enhances the chances of a robbery. Remove valuable items from the North West corner, thereby reduces the chances of theft considerably.

Theft by an employee or a servant: If you have a servant room in your house, make sure that they are not residing in the south west corner of the house. As per vastu, properties or house with servant residence in south west corners are more prone for theft by servants than outsiders. Changing the direction of the servant room or shifting the servant room to a different direction can offset the negative vibes of a possible home theft by servants.

Main door: The main door of the house and subsequent doors of the house have a lot of importance in vastu. For a positive effect, the entrance door of the house must always be bigger than other doors of the house as a rule. The main door must always have two opening shutters. Single doors for small houses are allowed only if they are not located in the eastern or northern direction. Single door in the south is also considered inauspicious for home safety.

Any negative or evil pictures surrounding the entrance door or main door is also believed to attract negativity and possible forces of theft to one’s house. Keeping positive pictures like that of a lotus of lord Ganesha or Goddess Laxmi on the other hand keep the house safe from all negative forces and theft.

Document Checklist for NRIs Buying Property in India

NRIs have a variety of investment options in India. But real estate still remains to be one of their favourite options, not just because of high returns but also because of nostalgic attachment and the dream to come back to a safe and world-class retired life in their homeland. In addition, many NRIs are also interested in several Indian metros considering high growth prospective of the real estate segment in the country having attractive options including apartments, villas, plots and pent houses with world-class facilities.

NRIs have multiple options available and sitting at any corner of the world one can enquire about projects through live chats, see projects through video casts, 3D walk-through etc. However, many people have doubts regarding the documents required for processing home loans as well as property documentation procedures in India. So here’s a quick check list:

Documents for home loan processing:

• Passport and Visa Copy
• Copy of employment contract / Appointment letter / Work permit (which ever or all applicable)
• Latest salary certificate (attested by the embassy, if salary is not bank credited)
• Latest 6 months pay slips (if applicable)
• Last 1 year’s bank statement (of both overseas account and Non Resident External or Non Resident Ordinary (NRE / NRO) account)
• Power of Attorney (to be executed in the format provided by the bank and attested from Indian embassy)

Checklist of property documents:

Whether you avail home loan or not, the basic list of property documents as mentioned below is a must-have for all property buyers. If you are availing home loan, the panel advocate of the bank will go through these documents and certify the validity of the property documents. But if you are not going for loan, do consult an advocate to verify the documents and to see if the property has a clear title.

The documents required are:

• Title Deed (in the name of the seller)
• Prior Title Deeds (of last 15 years)
• Latest Tax Receipts (land and building if any)
• Updated Encumbrance Certificate (covering last 15 years)
• Approved Plan
• Building permit / Notice Of Commencement (from corporation, municipality or panchayat, if you are purchasing a house / apartment)

These are the basic documents required for checking the legal entanglements pertaining to the land. After going through the documents, if there are any complications, the advocate may call for additional documents if any clarifications required.

If the documents are clear, you can get into a sale agreement with the seller after giving a mutually agreed advance payment. If you are presenting the documents to the bank directly for legal verification, they will accept the documents only if accompanied by a sale agreement.

Ensure that seller of property has all documents in original. Original documents need to get verified by the bank and the legal adviser.

Types of properties

NRIs have no restrictions in buying any type of property in India. Be it a land, under-construction house / apartment, pre-launch property or any other. However, there are some restrictions for providing land loans to NRIs. There are also restrictions for NRIs to acquire agricultural land, unless it is through inheritance or acquired before getting NRI status.

Builder projects

For purchasing flats, villas etc. from a builder check if the project is already approved by the bank. If so, you need not take all these documents pertaining to the land. Instead, you need to only submit the sale and construction agreement, receipts of down payment and an NOC (Notice of Commencement) from the builder for making the proceedings.

Formalities and documentations are uniform in India. However, slight variations can happen as is the case with developed projects. A good and cooperating seller or a reputed builder can make your documentation process hassle free.

Registration formalities

As per current registration formalities the title deed needs to have the photograph, signature and thumb impression of the purchaser. In case of the absence of the purchaser at the time of registration, a Registered Power of Attorney can be issued to your immediate relative to sign the document on your absence. This needs to be executed before the registration date.

Documents required at the time of registration:

• Pan card (Permanent account number) if any
• OCI/PIO card (Overseas Citizenship of India/ Persons of Indian Origin)
• Passport
• Passport size photographs
• Address proof
• Registered power of attorney (if you are not physically present at the register office)

 Payment:

Payment to the seller can be made through any normal channels like cheque from NRE/ FCNR or NRO account (Non Resident External or Foreign Currency Non-Repatriable or Non Resident Ordinary), cash, or cheque from bank in case if you availed home loan. 

Advantages Of Small Unit Sizes

In these times where finding an affordable house in big cities such as Mumbai and Delhi has become difficult, real estate markets across the country are increasingly witnessing reduction in residential units sizes. While this has become a common trend across various cities, smaller units also offer advantages. For example, they improve affordability of residential projects. There are various other advantages of buying smaller units.

Residential units reduce in size

Many major cities in India are witnessing reduction in unit sizes in the last few years. According to Common floor data, the average apartment size in Bangalore in 2012 was about 1,640 sq.ft, 43% higher than the national average. However, it saw a reduction of about 10% during the third quarter of 2013. Similarly, areas in the Mumbai Metropolitan Region (MMR) saw a fall in apartment sizes in the last few years. According to Jones Lang La Salle, sizes of flats in Greater Mumbai in 2008 were an average 20% higher than those on a pan-India level. However, the unit sizes have greatly reduced and are currently almost 15% lesser than other cities, indicating a fall of approximately 31% since 2008.

Increasing property prices and slow economy can be cited as major reasons for this reduction in sizes. Minimization of risks is another reason cited for reducing unit sizes.

Smaller units increase affordability

Affordability has become the buzz word for the past 2-3 years when it comes to residential projects in the country. India currently faces a shortage of about 18 million units in urban areas. On the other hand, there is an average inventory pile up of 2.5-3 years. This disparity is because the supply does not match the demand. The demand is for affordable houses while the available units are beyond the reach of the middle-class segment. The only way to ensure reduced prices in cities, where costs are high, is to reduce unit sizes. When the unit size becomes smaller, the ticket size too reduces.

Other advantages

While affordability is the buzz word, there are other advantages of buying small units as well. For example, maintenance costs of smaller units are lower compared to those of bigger properties. It is also easier to manage and maintain smaller units. In modern times, due to the cost factor, smaller houses sell quickly. This minimizes the risks and liabilities involved in buying bigger houses.

Builders see advantages

For a builder, a reduced unit size immediately translates into a smaller ticket cost and more sales, as buyers prefer smaller ticket properties. From a larger perspective, it also offers other advantages. It certainly offers a competitive edge over other builders who have slow sales due to larger apartments selling at larger ticket sizes. At the same time, it significantly reduces the risk of inventory pile up. Several builders across the country are facing a situation of tight liquidity. Faster sales can release some of the pressure on them.

According to builders, buyer requirements have changed with increasing prices. Buyers and investors are willing to compromise on unit sizes. Hence, a good balance between unit sizes and ticket sizes can significantly improve sales.

EXPAT INDIANS DRIVE DEMAND IN PUNE’S REAL ESTATE MARKET

IT driven locations, across the country, have been witness to the migration of large educated workforce, be it Bengaluru, Gurgaon or Pune. This upwardly mobile, well-earning and lifestyle-driven class, hence, becomes a key demand driver for property in the given city. In Pune, the expat Indians have thus, emerged as the key demand drivers for property. The rise and growth of Pune, in terms of its overall economics, also suggests that the large workforce will have a major share in creating demand. Primary drivers in Pune are the migrants from sectors like IT, automobile, education, other manufacturing sectors, which have led to the growth of the city's economy. Better supply itself is pushing the demand from the urban buyer while in the past, the good climate all through the year, had made this city the pensioners' paradise. People from different walks of life are settling down in Pune and analysts often assert that they can no longer be termed as expats because they are willing to settle down in the city. However, the demography of the city is changing fast and with the educated workforce migrating to Pune, it has fast turned into a cosmopolitan place and the local crowd is fast becoming more dependent on the migrant population. Abhay Kumar, CMD of Grihpravesh Buildteck, points out that IT still rules the roost in Pune but there are other drivers too, for the real estate growth in the city. The improved connectivity between Pune-Ahmednagar-Aurangabad is driving the Raanjangaon belt on one side, while the news of the Navi Mumbai Airport has created remarkable interest in the Mumbai-Pune Express-way area too. Pune also has the natural advantage of location that allows it to grow from all sides. Lavasa road area, Pirangut, Paud, etc., too, have witnessed some encouraging developments. "Primarily yes, the expat Indians are the main demand drivers in Pune. The quality of development too, has been due to such demand 
    Ammul Goel ,Managing Director ,Pushpganga Ventures ,  shares that Pune has had four key sectors driving its growth - IT, manufacturing, education and auto. Currently, the IT and ITeS industries are the major demand drivers of the Pune property market. In several projects, there has been a very high percentage of IT and ITeS employees, which is representative of the overall industry. The other complementary driver is the demand seen by people from Mumbai. "Due to the high cost of real estate in Mumbai, Pune becomes a far more affordable investment option, especially in the range of Rs 50-150 lakhs range. The NRI population is also contributing significantly to this growth. It is important to note that properties in the Rs 35-40 lakhs bracket, have also seen a lot of interest from the manufacturing sector. However, most of the supply for this product range, is on the outskirts of Pune in areas like Talegaon and Chakan. Since Pune is an industrial and IT hub, it has a large immigrant population (about 30 per cent). All these factors, along with world-class educational institutions and the auto industry, have given Pune’s property market, a stable and sustainable demand for homes," explains Gera. 
    Vinay Phadnis, CMD, Phadnis Properties, however, does not agree that the increased economic activity and that urbanisation will lead to more migration and hence, the local economy will be more dependent on the expat population. The local economy cannot be completely dependent on the expat population. There will always be a fair market share of NRIs and locals investing in real estate. Another important aspect playing an important role is the MNCs investing in commercial property. About 1.2-1.5 lakh people migrating to Pune in a year for the purpose of education and employment, is the target market. "Due to competitive property prices, Pune becomes a rational and desirable choice for property buyers. A huge chunk of investors from the metros, are choosing to invest in Pune because of the price advantage and higher returns. There is a considerable balance in the number of budget flats for the mid-income group as well as in the luxury segment. Mid-income buyers are motivated by affordability and convenience, in terms of basic amenities, value-for-money, location, proximity, social infrastructure and so on. Due to a rise in the number of professionals, mainly from the IT and manufacturing sector, the demand for houses, mostly in the price bracket of Rs 50 lakhs to 1 crore, has been constant," shares Phadnis. A growing number of HNIs have contributed to the growth in luxury apartments. Investors are looking at the present situation as a buying opportunity. Infrastructure and urbanisation also play a vital role in the decision making process of selecting residential properties, as new projects which are closer to developed areas and have a growing infrastructure, will lead to greater appreciation value in future. There is also a huge rise in the demand for commercial spaces in leasing as well as outright sale agreement. There is indeed a large segment of NRIs investing in tier-II cities like Pune. Appreciating foreign currency rates in 2013 had actually increased the demand from NRIs who were investing in properties in the city. As a matter of fact, some of the luxury projects in Pune got a huge response from the NRI buyers. This is due to the fact that the urban environment is offering citizens from rural pockets, better opportunities and a better livelihood. With Pune being a magnet for such a migrant workforce, the property market in the city has benefitted from the same in the last few years. This has also propelled more companies to set up businesses here and it is certainly expected that the number of expats employed, will increase proportionately in times to come. Hence, the ratio of expat Indians in the Pune property market is only set to grow. 

s where the customers are well-travelled and earn well. One can observe the development of hotels, recreational joints, malls, etc., being the main driver for such growth which has been mainly due to the latent demand of the expats," says Kumar.

TIPS TO KEEP IN MIND FOR FIRST TIME HOME BUYERS

Paperwork is the last thing you think of when you look at a beautiful new apartment. Eyes full of dreams; you imagine your bed against the far wall of the bedroom, wonder how an overstuffed sofa might look in that airy, spacious living room and think of how much play area your little one might enjoy in her tiny, colourful bedroom. However, purchasing a house, just like purchasing any other asset, comes with more than its fair share of paperwork and dreary responsibility.

Understandably then, this drives the typical first-time home buyer to be either too careful or quite careless. While it is natural to be jittery about spending a lifetime's worth of savings, it is certainly not forgiveable to waste a golden opportunity to buy the right property just because you took too long to arrive at a decision. The idea is to strike a balance, cut the clutter and focus only on the critical, important things, such as:

1. Location: Nothing is more important than location. Before you even consider a certain property for purchase, check out whether the building or complex is located close to important amenities such as schools, hospitals, malls, etc. Even if you have to go further due to budget constraints, figure out all about transportation options, so that your family is not inconvenienced on a daily basis. The jackpot, of course, is if you can clinch a place close to your place of work. Imagine coming home for a quick lunch on a workday and getting home within 15-20 minutes after your day's work is done.

2. Price, budget and benchmarking: What is your budget? Before you step into the market, find out your net worth and your loan eligibility. Don't forget to deduct the cost of any other loans and liabilities you are still shouldering. The amount that remains is your final, real budget. However, this does not mean that the cost of the house can be the same as this figure. When you go out to look at properties, add another 11-12 per cent to the quoted cost. This will take care of additional expenses such as stamp duty, registration costs, VAT, brokerage commission, loan processing fee, et al. Once you have shortlisted a property, call a few brokers/agents in that area and enquire about the typical cost of a similar-sized flat in that locality. The amount they quote should not vary by more than 5 to 10 per cent against the amount that you are paying for your new house.

3. Loan eligibility and duration: With the salary your spouse and you make, you might be eligible for a loan worth a crore. However, should you really take on that big a loan? The answer varies as per your mindset. Some people argue that you should max out a loan, since it enables you to save tax from day one. Besides, as you grow in your career, so will your income, which will enable you to pay off the loan quicker. Nevertheless, the other side of the coin is - what if your situation changes? What if your spouse cannot or does not wish to continue his/her career? What if there is an unforeseen expense? The idea is to keep enough buffer to carry you through the lean periods as well. So, do take out a term life insurance worth as much as the cost of your house. It is simply a wise way to guarantee that your home and family are secure, in the face of any eventuality.

4. Life stage: Two years ago, Bandra-based Rakesh tied the knot with Malad-based Sakshi. Since their homes were small, the couple had to find accommodation on their own. Not wishing to move away from the western suburbs, they maxed out their loans to purchase a tiny one-bedroom apartment in Khar. Soon after, they had a baby and due to medical issues, Sakshi had to give up her career to take care of their child. Today, Rakesh is the only bread-winner, taking care of the monthly expenses, as he pays off their loan at a total EMI of Rs 95,000 per month. One can only imagine the pressure of being in this situation. So, before you buy a house, do consider your own life stage and your future in your chosen career.

5. Estimated maintenance costs: Figure out how much it will cost to live in this particular location, in this particular building. Some societies charge as much as Rs 10,000-15,000 for maintenance. If the house is far from the city centre, you might pay extra for rickshaw fare or other transportation.

6. Rent or buy, based on your career prospects: If your job makes you move cities/countries every few years, it might make more sense to purchase a house in the city where your family or relatives live and to take a place on rent wherever you might be working at the moment. This way, your property purchase brings you returns in the form of rent and/or price rise, whenever you choose to sell it and if you have a family nearby, they can be roped in to monitor or conduct occasional checks on your property.

7. Leave paperwork to the professionals: For your very first purchase, see if you'd like to get an experienced lawyer or real estate agent to look over the documents and make sure that all is in place. It's just an additional buffer against making beginners' mistakes.

Expected office uptake indicates realty boom in Gujarat

The property market in Gujarat is on a boom and the main focus is mainly on the residential apartments. However, office space is becoming a silent contributor and is acting like a catalyst in accelerating the pace of the market. Office space, though, lesser in transaction volume has a higher contribution in terms of its value and overall market sentiments of the state. More importantly, in terms of quality spaces, Return on Investment (ROI) and overall transactions, the Gujarat office market has performed better than the national average.

Office market in any given city is a true indicator of the potential of that property market. It is indicative of the fact that more jobs are emerging and thus, leading to retail growth. These two factors also have the potential to drive the residential property demand. The questions which arise here are: Has the Gujarat property market reflected on the fact that office uptake has been responsible for the booming property market across the state? More importantly, in future, whether the office market will be the prime demand driver of real estate in Gujarat?

Fact speaks for itself. Even though, there has been a decline in net absorption, it has been far better than other parts of the country. As per Cushman & Wakefield report, overall net absorption in Ahmedabad for the first three quarters of 2013 was recorded at 0.35 million sq ft, a decline of 37 per cent compared to the same period in 2012. Net absorption among all grades of offices for the third quarter stood at 76,000 sq ft, registering a marginal decline of 6 per cent from the previous quarter while grade A net absorption recorded an increase of 26 per cent quarter-on-quarter (q-o-q).

In terms of absorption and leasing activity, the city has been among the top eight cities during the year. Though, most of this absorption was concentrated primarily in the suburban submarkets of Prahladnagar and S G Highway, the existing high vacancy levels in these submarkets have led to a 6 per cent decline in quoted rentals at S G Highway and Prahladnagar. Low levels of pre-commitments in upcoming projects are expected to result in an increase of vacancies, thereby inflicting additional pressure on rentals in these two submarkets.

The city witnessed no new supply in the last two quarters. This has led to a decline in vacancies compared to a year ago despite the low transaction activity. Grade A vacancies have declined by 1.7 percentage points q-o-q to 31.3 per cent while all grade vacancies have dropped by 0.5 percentage points in the quarter to 14.2 per cent.

Rentals in the CBD declined by 8 per cent during the quarter, due to increasing vacancy in the sub-market. Most of the companies are opting for suburban areas due to non-availability of Grade A spaces in CBD. Rentals were stable at Ashram Road due to low vacancy and low transaction activity. Strata sales of office spaces continue to be the norm for most developments in the city and some projects have up to 60 per cent of their space sold to end-users.

Dhaval Ajmera, director, Ajmera Realty & Infra, says, “The current momentum for investment in Ahmedabad and Vadodara may be stable, but it is temporary as the state’s potential is strong and is based on real and concrete growth. It is heading towards a progressive path. Looking at the current scenario for the cities of Gujarat, as compared to other cities, the future yield will be high, making investors compliment their investment. Various industries in and around the city are fuelling the demand in state. Further, the property rates here are still realistic as compared to other cities which is a positive sign for investors and developers.

He adds further, “Real estate sector in Gujarat has shown tremendous developments in the last few years. It has proven to be one of the most sought-after locations when it comes to commercial properties, mainly due to its excellent infrastructure facility and being a trade hub. With the growth of varied sectors and industries,

Gujarat has turned out to be the home for many important IT companies, industrial and manufacturing units, corporations, KPO, BPO and ITeS firms. Hence, there has been a considerable rise in demand for commercial spaces to set up their offices.”

Manan Choksi, regional director, RE/MAX MGM, however, feels that since the beginning of the year 2014, there has been a contrasting change in the outlook and net absorption. According to him, the vacancy of commercial office space is reducing very fast and rental deals are more since 2013. New projects are picking up slowly but market looks positive in 2014.

“The focus is shifting from large offices to small offices with quality infrastructure. As far as Gujarat office market with respect to the other states is concerned, small and medium enterprise are ruling the office space consumption in Gujarat, while in other major cities, MNCs, banks, IT companies, and BPOs are the prime consumers of real estate. The next boom is expected in the office space of Gujarat realty as the empty buildings are occupied and new projects are soon to be launched. So, for the medium term, shortage in office space market is expected,” says Choksi.

The main purpose to move into quality office space is high quality physical infrastructure and keeping in mind the array of basic facilities like electricity, water, gas, district cooling, roads, telecoms and broadband. Further, today, modern hi-tech office spaces inculcate integrated townships, an entertainment zone, hotels, a convention centre, shopping malls, stock exchanges and service units. Gujarat is witnessing many such developments, hence, the percentage of people moving into quality office spaces is increasing at a faster pace. One such example is Gujarat International Finance Tec-City.

Analysts maintain that Gujarat has emerged as a forerunner due to all the improvements and progress displayed in terms of the activities to supplement the process of development. From real estate point of view, there is not one but many demand drivers for commercial properties in Gujarat like the infrastructure capacity, well maintained roads, flyovers and bridges.