Pune Property Prices On The Growth Ladder

Pune: Property rates rise by 30% in many localities

In terms of return on investment, Pune residential real estate market has shown tremendous growth. According to recent data, almost all localities have marked an appreciation in the property values in the last two years.

The data shows that from Jan-Mar 2013 to Jan-Mar 2014, localities such as Sopan Baug, Pashan, Aundh, Kothrud, Wanwadi, Wagholi, Bavdhan, Kharadi,Yerwada, Sinhgad Road,Wakad, Pimple Saudagar, Balewadi, Hadapsar, Baner Road, Kondhwa are the few localities that have seen the appreciation of over 30 per cent in multi-storey apartments.

“The residential property market in Pune has maintained its momentum even in a challenging economic environment and managed to outshine several key markets in the last 2 years,”

Experts feel that due to resurgence in employment-driven market sentiments and the coming of several right-priced residential projects, Pune proved to be a notable exception. “The city showed a very healthy demand for mid-priced residential properties throughout 2013 and on into the first quarter of 2014,” 

Moreover, the overall demand for the residential units has also increased in Pune. “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,” informs  Ammul Goel , MD , Pushpganga Ventures

So where is the demand coming from? Mr.Goel explains that the spread of organised retail, constantly changing city dynamics and demographics coupled with the healthy rate of growth and opportunities generated by the IT/ITeS, manufacturing and automobile sectors have ensured a steady stream of demand in Pune.

Future of realty

Pune has been consistent in its real estate growth by showing year on year growth in the property values. “Last year we predicted an increase of 13 per cent – 17 per cent in the average market price and the year ended at 14.13 per cent.  This year our prediction range is widened to 13 per cent – 18 per cent,” 

However, when compared to other metro cities, such as Delhi and Mumbai, Pune’s property rates remain relatively rational. Owning a home in this city is a dream that can be translated into reality

Vastu Tips For West Facing Home

The Vaastu Ashtray has been a trustworthy source of knowledge for the people in India to design perfect houses that bring them happiness throughout their life. Vaastu being a very ancient concept is being practised widely in our society. When one plans to construct a house, the first and foremost thing strikes to his brain is about the accuracy of the Vaastu of the house. Even builders pay a special attention to Vaastu while designing huge buildings and apartments. When people start constructing a house or pay a visit to a flat in buying purpose, the first thing peep into their minds is the position of the house.

A number of questions start bothering them. The primary concern being the position of the entrance door, people try getting the Vaastu of the house correct so that they can spend the rest of their lives happily. However, Vaastu Shastra provides us with a lot of guidelines for the betterment of our fate as far as buying a house is considered. It is not a matter of concern if you have bought or constructed a house which is west facing. Vaastu Shastra has remedies for every problem of a house.

Let us discuss some of the remedies that can be practised if your house is west facing.

You should build your prayer room in the north-east corner of your house to avoid negative energy entering your house. The idols should be kept in such a position that while praying, your face must face east. You must design the prayer room with at least one window to keep the room lit always.

Your master bedroom should be in the South-west corner of the house as it is described as the best location for the bedroom in your house. If you have kids, you must design their bedrooms in the west direction of your house. Guest rooms should be constructed in the North-west of the house.

According to Vaastu, the kitchen must e in the South-east for a west facing house. It will bring prosperity to the owner of the house. The cooking stoves in the kitchen must be placed in such a way that the person must face towards East while cooking.

Your water tanks must be in the eastern or northern part of the building. In a west facing house, you need to keep less space at the front side of the house. However, you can have a garden in the north-east or north-west side of the building. If you are leaving space in front of the building, you must ensure that the space is left in the eastern or northern side of the building.

According to Vaastu Shastra, the height of the front boundary wall must be higher than the height of the back boundary wall for a west facing house.

You can bring happiness, wealth and prosperity to yourself and your family by following the guidelines provided in the Vaastu Shastra without worrying about the construction of the house.

Vote For Your Self , Vote For Your Future , Please Vote

Why Should We Vote

Voting in India is a Constitutional right if one is a citizen over 18 years of age. However, that also makes it optional. It has been a tendency among voters, especially in the urban areas, to treat the voting day as a day of rest. While skipping the vote may not seem to cause any harm, the long-term consequences are disastrous. 

Here's why every citizen of India must cast his or her vote:

• Agent of change: Voting is the agent of change. If the people of India think that the ruling government is not performing its duties satisfactorily, they can show it the door by voting against it. Refraining from doing so can result in the same party, or a worse one, being elected for the next five years.
• Every vote counts: In a country so populous, a voter might feel that a single vote does not make any difference. However, the balance tilts when this becomes a national attitude and lakhs—perhaps crores—of votes are not cast. By casting their vote, citizens may not necessarily be able to get the best candidate elected—politics being what it is—but by avoiding casting their vote they improve the chances of the unsuitable ones winning the polls. At the end, it is only the voter who has to suffer through poor governance.
• Get heard: Voting offers every citizen a medium of expression. In a country as vast and diverse as ours, different regions have different concerns and priorities. The process of voting allows every citizen to have a say in what should constitute the matters of importance by voting for the candidate he or she deems fit for the purpose. While it is true that the outcome of elections is seldom predictable, by not casting one's vote, that citizen is giving up on the chance of getting heard.
• Voting as a responsibility: Voting is as much a responsibility as it is a right. The whole edifice of Indian democracy is built on the foundation of voting. If citizens are not careful about casting their vote—or worse, skip their vote altogether—it will jeopardize the existence of our democratic Republic.
• Voting as an honor: Finally, voting is an honor conferred on the citizens by the founding fathers. By exercising their right to vote, citizens demonstrate their respect for the history of the country.

It can't be denied that the recent democratic experience in India has not been encouraging. For the past several years, India has been struggling with rampant corruption, unsure economy, and unclear foreign policy. Election after election has seen ineffective governments come to power that have done more harm than good. However, not casting one's vote will only worsen the condition. It is our duty as responsible citizens of India to make informed decisions and choose the best candidate from those presented. Moreover, with reforms like Right to Reject gaining wider support, it wouldn't be long before the system of elections is improved.

Elections & NRI Real Estate Investment

With the bugle of the general elections blown and the formation of the new government a little less than two months away, the real estate sector is bracing itself for positive sentiments in the coming future. The real estate sector witnessed a sluggish 2013 with a decline in absorption for both domestic and Non Resident Indian (NRI) buyers. The new government is likely to bring with it new monetary and sector oriented policies that can inject a fresh lease of life to boost transactions and lift the buyer sentiment as a whole.

Let us take a look at how the general elections can impact the real estate sector in the coming months with a special emphasis on the Non Resident Indian (NRI) sector.

Real Estate Sector and Political Uncertainty:

“With general elections a just a few days away, we prefer to have a wait and watch before making any real estate related decisions” says Mr. Aravind Nair, a Bancassurance professional based in Doha. While there is a general perception that real estate prices usually consolidate after general elections, the trends can only be correlated in case India gets a stable government which has a real estate sector oriented policy.

There are three cases which can happen in the Indian general election.

First and the least likely case is the return of the present government. In case the present United Progressive Alliance (UPA) government gets back to power, the real estate sector will have the advantage of knowing the short and long term policy of the government with respect to real estate. The focus on special economic zones can increase market sentiment in the commercial space.

The second least likely result is a fractured mandate with neither United Progressive Alliance (UPA) nor National Democratic Alliance (NDA) getting a majority. Most experts feel that such a scenario can lead to stagnation of prices which need a sector specific policy trigger.

The third case which is most anticipated as per the election opinion polls is the likelihood of formation of a National Democratic Alliance (NDA) government. Industry experts and real estate bigwigs have high hopes from the new alliance as they have already announced their willingness to offer Foreign Direct Investment (FDI) in the real estate sector thereby boosting both supply and demand economics.

Financial Impact and New Government Policies:

The impact of positive sentiment or reigniting of Non Resident Indian (NRI) interest in the Indian real estate market is directly related to the financial impact and policies of the new government. “We believe that the new government is likely to bring in a positive developmental role in enhancing various regulatory frameworks” says Mr. Mohammed Mansoor, a Dubai based business man. In such a case, the Foreign Direct Investment (FDI) in the realty sector is likely to improve significantly. “The new government is likely to create investor friendly policies allowing Non Resident Indians (NRIs) to invest in the Indian real estate market as possible retirement avenues” hopes Mr. Sujay Nath, a Singapore based IT professional. The talk of development of 100 new cities across the length and breadth of India also offer tremendous upside for real estate developers as well as Non Resident Indian (NRI) buyers.

Dollar vs. Rupee Sentiment:

Currency fluctuation has been one of the main reasons for the lack of Non Resident Indian (NRI) investment in the real estate sector in the past. There have been reports that the Indian currency could soar if the popular National Democratic Alliance (NDA) government replaces the current government after the election. The robust Rupee is unlikely to dent Non Resident Indian (NRI) interest in the Indian market as the government is likely to compensate it by streamlining investment routes by offering transparent rules with a stern real estate sector watchdog.

A recent survey by Standard Life, a long term savings and investments company head-quartered in Edinburgh has revealed that almost two-thirds of UAE based Non Resident Indians (NRIs) feel that new government is likely to create better economic and investor friendly environment to consider retirement planning in India. The Reserve Bank of India (RBI) will also play a key role in the post-election scenario, clear policies are certainly going to help attract Non Resident Indians (NRIs) consider India as an investment opportunity in the real estate market.

Vastu Tips For New Home Buyers

According to our ancient beliefs, Vaastu Shastra plays a very important role in converting a new house into a perfect home. It is believed that wrong Vaastu may hamper the growth and happiness of the inhabitants of a house whereas, the correct usage of Vaastu helps us in flourishing in our lives by providing us with health, wealth, peace, and happiness. There are a number of things to be considered to make a house perfect according to Vaastu Shastra. The Vaastu Shastra provides us with ample knowledge on the placement of things in correct directions.

Let us discuss few of those essentials in Vaastu Shastra that would help in designing your perfect abode.
Staircase: Try to design the staircase of your house on the South or South-west direction. The stairs in the stair case should lead from north to south or from east to west. Always try to maintain odd numbers of stairs in a stair case as it would help you step into your house with your right foot, provided you start climbing with your right foot. This is believed to bring positive energy to your house.

Entrance: The size of the entrance door should be larger than the other doors in the house. The door should be designed in an attractive manner so that it can attract positive energy to the house. The door must open inwards rather than opening outwards as it will help in restoring good energy inside of the house. If there are steps to the entrance, the step number should be odd. You can fix good images above the entrance and you must put Swastika symbols on both the sides of the entrance.

Bedroom: The bedrooms of the house must be located on the South-west corner of the house. The ceiling of the room must be uniform as it would help in uniformity of positive energy throughout the room.
Kitchen: The kitchen should be located in the South-east corner of the building.

Drawing room: If the drawing room is designed to the North of the house, it brings better results as far as good luck is considered. The drawing room should be larger in size as compared to the other rooms of the house. The furniture in the drawing room must be rectangular or square in size.

Study room: if you have kids at home, it is better to have a separate study room as it would help them better concentrate on their studies. The rooms located in the North, East, North-east, north-west are good choices to be converted into study rooms.

Prayer room: The prayer room brings joy to your house if situated in the North-east direction of your house. If you are planning to have deities in your prayer room, make sure that the faces of the deities do not face towards South.

Store room: If you really want a store room in your house, you can take a room in the southern part of your house. Refrain yourself from storing things in diwans or box beds to avoid sleeping disorder that can happen to you as a result of the magnetic effect of these.

Bath room: The bathrooms of a house need to be in the North-east corner of a house.

As per Vaastu, there should be enough space to the North and East directions of your plot where you are planning to build your house. The plot must e square or rectangle in shape. If the plot has roads on all its four sides, it will be excellent for your growth and prosperity.

Is This Right Time To Invest In Pune ??

We must be thinking that conventional wisdom of real estate suggests that in times of slowdown, the emerging markets outperform the matured markets. The matured markets are expected to correct or crash during tough times. However, Pune has been bucking the slowdown blues and has maintained a uniform appreciation across the micro markets of the city, something that defines how resilient Pune’s property market is.

The future appreciation potential of Pune is also estimated to be among the best, compared to other cities on a pan-India basis. While there has been a decent capital appreciation in Pune in the last couple of years, even the rental yields have been witness to a healthy growth. Analysts are unanimous that Pune has outperformed most other markets over the last two years, consistently bringing satisfactory ROI to investors. They dismiss negative forecast. What makes the Pune property market a realistic one is the fact that there is sufficient demand for all types of housing in the city, and Pune’s property market is inherently rational and safe since most of the demand comes from end-users.

Ammul Goel, managing director, Pushpganga Ventures, maintains that every market experiences ups and downs, but markets like Mumbai are legendary for getting overheated. Pune, on the other hand, has been experiencing healthy growth and not speculator-driven price inflation. Thanks to better land availability and the fact that the city is still expanding outwards, Pune’s property market is kept rational by a constant influx of supply in its new real estate destinations.

“The highest demand for properties in Pune is in mid-income housing. This is beyond doubt the best segment to invest in. Generally, Pune offers steady capital appreciation, between 10-15 per cent per annum in most areas. The right places to invest in are its emerging corridors, which will see steady growth as infrastructure and connectivity improves. The right time to invest in these areas is while the entry point is still low. Soft launches by reputed developers are an excellent opportunity in this regard,” says Mr.Goel.

In last one year while the investment potential for residential properties in the financial capital of Mumbai, remained largely flat and unexciting, Pune emerged as the obvious choice. According to him, 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 per cent in property prices. Vacancy levels in Pune stand at between 20-22 per cent, while in Mumbai they are close to 35 per cent. As a result, investors are staying invested. Pune is one city where the residential property market has maintained its momentum even in these challenging times. In fact, Pune has been one of the best-performing residential real estate markets in the recent past. End-users and investors continue to focus on this market because of its high viability and rationality,” says Pate.

We can say that on the contrary, says that Pune is suffering from over-supply in recent times and a correction seems round the corner. He maintains that the last couple of years were not good for Pune market but there would be a spurt of growth in 2014. This city has changed its dynamics to cater to the demand issue. Now one can see some very interesting developments inside and on the outskirts of Pune, which has contributed to fresh interest in this city.

“Certainly property is going to give the best ROI in Pune market. Right now due to over-supply and sluggish demand in constructed properties, the land deals are not really happening. This phenomenon has made land extremely attractive in Pune. Good deals are available in all emerging areas of Pune. One should wait till the general elections. The inventory is in abundance and the market is not going to shoot up in the near future, but we can get some better direction if we wait till April 2014. Rental yields too, are now in line with cities like Mumbai and NCR which cannot be termed very attractive. Pune is an attractive market for land purchase in the current scenario just because great deals are available at this point of time,” says Abhay.

Moreover, there is no evidence of overheating in the Pune property market. On the whole, pricing of mid-income and even premium housing is still affordable to buyers, when compared to cities like Mumbai and Bangalore. In contrast, there is currently not a single location in the Mumbai Metropolitan Region which is performing well, both, because of exorbitant pricing and severe infrastructure deficit everywhere.

Analysts also have a word of advice for those who are indecisive about their choice to invest in the Pune property market. They suggest property should be acquired not only on macro-factors such as overall vibrancy of a market, but also at the right time and in the right place. Not all locations in Pune perform equally well in terms of capital appreciation, and some have actually reached near-saturation.

The best strategy for investors with more modest budgets, is to invest in emerging locations such as Undri, Ambegaon, Dhanori or Wagholi. For investors with a higher budget range, Baner, Aundh, Kharadi, etc., is the best bet. In all cases, capital appreciation is assured as long as one remains invested for a minimum of 4-5 years.

Source: Times Property, The Times of India, Pune

New Route For NRI Real Estate Investments

Indian real estate sector is bracing itself for a brighter year ahead as demand in realty sector recovers slowly. When the year 2013 was a forgettable year for the Indian real estate sector as a whole due to the rising inflation and high borrowing costs, the Non Resident Indians (NRIs) took the center-stage taking advantage of the devaluation of the Indian Rupee as compared to the US Dollar. This market condition has made sure that Non Resident Indians (NRIs) are now driving the market sentiments and builders are serving them keeping all their needs in mind.

Let us take a look at how the year is likely to pan out for non-resident Indian investments in the realty sector.

More concentration for Non Resident Indians (NRIs):

To balance the sluggishness in local markets, real estate developers are now concentrating more on projects for the Non Resident Indian (NRI) segment exclusively. This includes more concentration on luxury amenities and green living, aiming at Non Resident Indians (NRIs) who wish to maintain the same international standard of living.

Non Resident Indians (NRIs) bypassing lucrative traps:

One positive development in recent times has been the awareness amongst non residential Indians helping them avoid the booby trap for Non Resident Indian (NRI) centric projects. A lot of builders and realty developers have been guilty of marketing their projects as custom built for the Non Resident Indians (NRIs) in the past. Non Resident Indians (NRIs) have made a lot of sentiment driven investments in such projects only to rue the long delays. So much so that some investments even turned potentially deprecating for the investing Non Resident Indians (NRIs). The positive real estate trend for Non Resident Indians (NRIs) is the increased awareness about the manipulative marketing strategies adopted by realty developers in the past.

Tier II and Tier III cities attracting more investment:

Moving over the old cliché that most Non Resident Indians (NRIs) had, thinking foreign-earned savings would make it simple to find a luxurious home in India when they return, Non Resident Indians (NRIs) are now investing early. Most Non Resident Indians (NRIs) have moved on from investing in metropolitan cities to smaller tier II and tier III cities. Needless to say the rising demand in smaller towns has made real estate developers focus their energies on luxurious home segment in smaller towns. Non Resident Indians (NRIs) are no longer investing in properties as a back-up base when they return but also investing in real estate segment as an investment opportunity. The smaller towns and cities offer immense potential and opportunities for such investments.

Clarity of Regulations:

Although Non Resident Indians (NRIs) have a natural affinity towards their homeland, potential lack of clarity on regulations and legal issues usually act as a deterrent from bringing in higher investments. The Reserve Bank of India (RBI) on its part has streamlined various rules and regulations for Non Resident Indians (NRIs) seeking to invest in the Indian real estate sector. Non Resident Indians (NRIs) have no restrictions on the number of commercial or residential properties they can own in India with only a limit on repatriation of more than two unit sale proceeds. Mortgage of residential property no longer requires any pre-approval from Reserve Bank of India (RBI) while renting is made easy with rents allowed to be credited to Non Resident External (NRE) accounts or remitted overseas
.