Affordable Housing Sector In Pune in Great Demand
There had been a 52% dip in the affordable housing segment in Q3 of 2014 all across India. However, while this had been the scenario elsewhere, the housing segment in Pune is reported to have a healthy growth rate.
In the third quarter of 2014, affordable housing segment across different parts of India experienced a 52% dip while that in Western Maharashtra, Pune experienced a significant growth. The reports were backed by the real estate consultancy firm Cushman and Wakefield saying that the housing segment witnessed one of the sharpest declines in the third quartile and yet, the affordable housing segment continues to be in high demand.
Denial of reports: In spite of the reports, several housing developers of Pune do not agree with the findings.
- There is no definite description of affordable housing the price range, as has been stated by affordable housing developers such as Xrbia, Vastushodh, Sanga Group etc.
- Pune homes typically range between Rs.10lakh to Rs.25lakh in the affordable housing range offering 1.5-2BHK flats.
- Cushman and Wakefield report 500 units for the 3rd quarter as compared to zero for the same period in 2013.
Affordable Housing Segment: Managing director of Vastsushodh, Sachin Kulkarni says that the development of affordable housing in India requires a different set up and infrastructure as well as use of equipment and is thus a different ball game altogether.
In the Pune market, there is a huge demand for affordable residences and it is estimated that over 8000 apartments will be coming up in and around Pune of which 80% of the units have already been sold.
Vastushodh offers affordable homes under the brand names of Urbangram and Anandagram and has already developed more than 8 lakh sq. ft. with an additional 4 million sq.ft area being developed. Kulkarni also says, the government has been asked to define affordable housing in definite terms for every city of India so as not to leave it vague.
Reasons for the growth:
- Pune has the availability of land parcels which is beyond the municipality limits which is said to be a contributing factor.
- Previously too, the senior concept homes have been a success and projects of all price ranges have done well in the region.
Rajesh Kulkarni, CEO and managing director of Brick Eagle points out a huge supply and demand gap that is presently existent in the affordable housing sector with a demand estimated to be of 7 million homes and being catered with only 1 million.
Source: Business Standard
