The real estate market in India has been largely unorganized in terms of its processes and integral legal system. There has been no central regulatory body and each state has its own set of norms and approval processes. Nevertheless, in the past few years, the industry has witnessed statutory and self-regulatory changes. Being a real estate player in Pune, I still believe there are a lot of challenges faced by players in the industry when it comes to legal processes. One of the biggest challenges which prevail is that of the slow pace of approvals. So as a solution, we feel the industry requires a system that can ensure prompt approvals which will further cut down the turnaround time that a real estate project requires in India. Thus in the long run, it will reduce the interest and other costs associated with the project and can ultimately be passed on to the end consumer.
Pune has been experiencing a very cosmopolitan population over the last decade. Its no more a Pensioner’s Paradise. When I say it is no longer a Pensioner’s Paradise, I mean that the city cannot just be identified with that sole attribute. Pune is also the cultural capital of Maharashtra and in the last decade has observed various changes that have affected its demographics and construction developments, major ones being the expanding educational management facilities, the IT surge and the widespread organized retail sector.
Over the last few decades, many MNCs have entered the Pune horizon, leading to better opportunities and pay scales. These in turns have affected lifestyles and people’s aspirations and affordability levels. The real estate sector was mainly concentrating upon budget homes, but today has expanded into luxury and super luxury apartments as well. Similarly the IT surge that took Pune by storm resulted into construction of fully equipped townships. Moreover, there was availability of easy home loans and innovative bank schemes that enabled people to buy their dream habitats.
According to a recent report, it is estimated that the annual demand for homes in Pune has risen to approximately 46000 units. Although pensioners do comprise an important percentage of Pune’s demography, the changing industrial and economic trends have brought about a positive change in its real estate sector as well. These changes have surely given a boost to the builders and their efforts to provide a better living experience to every dream home aspirant.
The past decade has seen the Indian real estate industry on a roller coaster ride through many highs and lows. It comes as no surprise that the year 2013 and early 2014 have not been very prosperous for the overall real estate sector, especially in Pune. The shuddering economy coupled with government uncertainty was perhaps the root causes for the same. Nevertheless, due to the advent of the new government and their policies, things certainly look promising.
With FDI allowance in real estate sector by new government, we are positive about the bright future of this sector. The plans of building smart cities across the country with an allocation of Rs 7,060 crore in the budget towards it and redeveloping other small cities is surely a sign of a booming real estate industry in near future. Moreover, the relaxation and friendly policies for investors is a clear sign of attracting investments from big investors and NRI investors as well. Not only this, the open FDI policy will bring in opportunities for cheaper capital for smaller projects as well, improving quality and delivery of low cost and affordable housing projects. Additionally, other provisions like- reduction in built-up area and size of projects will also permit mid-sized and smaller developers to be a part of FDI and thus boost affordable housing in the country.
Passing up the land bill is historic & will certainly pass on the benefits to the tillers of the soil (Original land holders).Real Estate Regulatory bill will certainly bring more transparency in the Real Estate sectors and will help to get the industry status. This will benefit a good developer which is customer centric & will eliminate the short sighted developers. Such policies will help a more systematic growth with town planning & green coverage with minimum damage to eco systems.
2015 certainly is an exciting time for Real Estate Players in the country!