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FOMO vs. FOBO – In A House Hunt, One Helps and the Other Hurts

Oct 7, 2024 by Gayathri Pariti 0 Comments #Akash Pharande, #FOBO, #FOMO, #Managing Director - Pharande Spaces

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By -Akash Pharande, Managing Director – Pharande Spaces

India’s real estate market provides many opportunities for home buyers. However, it is not easy to navigate, especially for first-time buyers. With so many options and also varying offers from developers, it is often difficult to decide which property purchase ticks all the right boxes for an individual buyer who has never purchased a property before.

Within this complexity, the psychological phenomena of FOMO – the Fear of Missing Out and FOBO – the Fear of Better Options – play big roles in homebuyer decisions. While FOMO can be advantageous in such decisions, FOBO leads to indecisiveness. This can have potentially harmful results.

FOMO and FOBO – Digging Deeper

FOMO is a state of anxiety induced by the fear that one is missing out on an exciting or lucrative opportunity. In real estate, FOMO is what drives timely purchase decisions. As we know, the best projects sell out quickly and prices are also constantly rising, so FOMO is a positive impulse.

On the other hand, FOBO – the Fear of Better Options – causes aspiring buyers and investors to overanalyze the available options. At any given time, more than just a few properties are available to homebuyers that meet their budget, ideal location and lifestyle expectations.

FOBO tends to paralyze the decision-making process because the buyer is constantly hoping to find a superior alternative even if they have already identified a very suitable option. There is, of course, nothing wrong with having plenty of options, but FOBO tends to get buyers stuck in an endless loop of indecision. This can cause them to miss out on perfectly good properties at acceptable price points.

FOMO Can Be Your Ally

Though FOMO has become a derogatory word on social media, it has its advantages. In the context of residential property, it can induce genuine buyers to make timely decisions. This is very important in a market where the best options are often sold out during promotional launches. Infrastructure development, demand, and escalating development costs are constantly pushing up property prices. Homebuyers who experience FOMO at the right time and act on it are often at an advantage in such a fast-paced market.

In many of our cities, projects in high-demand areas often have limited inventory. Once these options are sold and off the market, there may be no similar options available at such prices for a long time – or ever. FOMO helps buyers to overcome hesitation and act quickly when they see a property that meets their needs and budgets.

Likewise, home loan interest rates can be quite volatile, and they play a major part in the overall cost of acquisition. When interest rates are low, FOMO works to the benefit of buyers by driving them to apply for home loans and closing deals before interest rates go up once more. The same is true for periods of discounts, such as the festive season

First-time homebuyers undergo a lot of anxiety when the time comes to take the plunge. FOMO helps convert this anxiety into productive action. Once buyers finally make their commitment, the fear of missing out goes away and relief takes its place.

FOMO

FOBO – The Fence-sitter Limbo

In contrast, a state of perpetual indecision leads to stress and regret if good options are missed out on. While FOMO can result in positive action, FOBO tends to freeze the decision-making process altogether. While scouting the housing market for a home, this can have catastrophic consequences.

FOBO results in an endless chase after a ‘better’ property, location, or deal. Buyers in this state of ‘analysis paralysis’ tend to see one favourable option after the other snapped up by someone else, or become too costly for them to buy.

With FOBO, a buyer who finds a home in a good area, in a project by a good developer, and at a price they can afford, will entirely miss the bus as they perpetually look for a better deal. By the time they circle back to the previous option, it is often too late.

The endless search for the ‘ideal’ option in a world where perfection is a myth only results in emotional distress and lost opportunities. Yes, the housing market is replete with options, but no single home buyer can – or should aspire to – inspect them all. Buyers with FOBO are invariably frustrated, confused people who cannot make up their minds on anything of significance.

In real estate, time is money and you can’t afford to lose either. A delay of even a couple of months can mean a substantial increase in property prices due to demand, inflation, or other market factors. FOBO’s inability to commit to a decision often results in missed chances to lock in properties at favorable prices or lower interest rates.

Over time, these costs add up, making the eventual purchase far more expensive than it would have been had the decision been made earlier.

Finding the Middle Ground

That said, there is also a healthy balance of FOMO and FOBO possible. It’s just a matter of finding that mid-point. Even if there is a sense of urgency, a buyer must not make hasty decisions and do his or her due diligence.

It is certainly important to see as many properties as is feasibly possible. This should not be a hurried process. It is best to set oneself a timeline within which a decision will be made. Usually, a month of dedicated searching is ample time. It is also important to factor in market conditions and to take professional advice before signing on any dotted line.

You want to leverage the urgency of FOMO and turn it into positive energy – but set realistic criteria. A buyer should have a list of ‘must-haves’ to refer to, and should not over-extend their budget. Set a limit to how big your shortlist should be.

If it starts getting endless, FOBO has taken over and it is time to snap out of it. You’re looking for a home that makes you happy, which you can afford, and which will appreciate well over time. Once you’ve found this home, make sure that you know that your hunt is over.

About the Author:

Akash Pharande is Managing Director – Pharande Spaces, a leading real estate construction and development firm famous for its township projects in Greater Pune and beyond. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer of townships in the region. With the recent inclusion of Puneville Commercial into one of its most iconic townships, Pharande Spaces taken a major step towards addressing Pune’s current and future requirements for fully integrated residential-commercial convenience

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Urbanization Vs. Nature – Is a Symbiosis Possible

Sep 19, 2024 by Sujata 0 Comments #Akash Pharande, #Managing Director - Pharande Spaces, #Pune

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by Akash Pharande, Managing Director – Pharande Spaces

Before urbanization took off earnestly in India, humans and nature coexisted admirably. Unfortunately, rampant real estate development has steadily reduced Indians’ access to nature. From the increasing demand for integrated townships with abundant greenery, we can see that urban dwellers today are looking to reconnect with nature.

The Cost of Urbanization

Our cities’ development agendas have taken a huge toll. Parks and forested regions have been replaced with high-rise skyscrapers. It’s tempting to blame municipal authorities and real estate developers for this loss, but there is no denying that our cities, which have limited space, must adapt to the constantly rising demand for housing, office buildings and the other real estate manifestations of modern-day life.

Supply follows demand, and developers cater to an ever-increasing demand. But there is a price to pay for this demand-supply interplay – nature has been relegated to the sidelines and, in some cities, wiped out altogether. There is a common belief today that greenery has become a luxury that only the rich can afford.

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Pune’s Development Trajectory

Let’s take Pune as an example. This city’s geographic limits were previously much narrower, and there was little motivation to expand them. Pune was the quintessential retirement city and was even called Pensioner’s Paradise. Another claim to fame was its educational institutions, earning it the additional tag of ‘Oxford of the East’. The city and its economic activity coexisted amicably with farming activities, even in the core areas.

Going back a little further, the British viewed Pune (then Poona) as a region of political turmoil and resistance to their rule. Pune did not begin to expand geographically or demographically till India gained independence in 1947.

Then the technological revolution in Pune started. It grew from a tiny city to a full-fledged metropolis because of its rapidly expanding employment opportunities, first in manufacturing, then in software technology and information technology-enabled services (ITeS), attracting a massive influx of people.

The city’s population began to rise significantly in the 1990s because of the country’s economic liberalization, which allowed for foreign investment and boosted industrial expansion. Pune’s salubrious climate, along with its robust education infrastructure, began to draw more and more skilled workforce. Infosys and Wipro established bases here, resulting in the creation of the Hinjewadi IT Park.

This resulted in a cascade effect, attracting other tech enterprises and MNCs. Its proximity to Mumbai, India’s financial capital, added to its appeal to firms looking to cut costs. Rapid urbanization resulted in massive infrastructure development, including upgraded road networks, residential complexes, and commercial malls.

As Pune evolved into an IT powerhouse, more and more real estate development was required to accommodate people and the businesses they work in. As of 2024, the estimated population of Pune is 4.44 million within the city limits and 7.35 million in the metropolitan area.

There was minimal impact on Pune’s once-famous natural wealth when it was still relatively small and unspoiled by the rampant urbanization we see today. It is painfully obvious how much of its originally bountiful supply of green open spaces has been depleted by low and high-rise housing constructions, landfills, commercial structures, and shopping malls.

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A Steady Disconnect From Nature

This development approach creates a disconnect between city dwellers and the natural environment. The desire to restore a healthy environment and healthier cities is once again staging a resurgence, but most real estate development today revolves around amenities and facilities. The little vegetation available is mostly ornamental.

Our cities are increasingly turning gray rather than green. Any attempts to reconnect people with the environment must be cross-disciplinary and integrated.

A city needs structures, deforestation is inescapable, and buildings will last as long as humanity. But can we restore nature to our cities?

An attempt in Singapore to reintroduce a natural ecosystem into the urban fabric is yielding incredible benefits. What such a vision of urbanization in the future may accomplish is fascinating. Concrete CAN coexist with a large amount of greenery, and one should not rule out the other.

However, it requires an extremely progressive town-planning vision, strong political resolve, and unwavering backing from the city’s population.

To conclude

Let’s face it – most of the housing demand in India in recent years is mostly for concrete structures with modern amenities, with a little bit of token vegetation. However, we are seeing a resurgence in demand for nature-rich housing in our cities.

Today’s young homebuyers come from a place of increased environmental conscience, and also concerns about their own and their children’s health and wellness. The rise in demand for homes in integrated townships, which guarantee abundant green, open spaces which will not be violated by further development, is testimony to this fact.

It takes time for a city to lose its ‘green’ reputation; for Bangalore and Pune, it took decades. It will take a few more decades to restore it, but it is achievable if all parties, from town planners and municipal officials to real estate developers and buyers, agree it is worthwhile and must be done.

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Breathing Uneasy – Housing Choices Amid Worsening AQI

Jul 15, 2024 by Mansi 0 Comments #air pollution, #Akash Pharande, #AQI, #Breathing Uneasy, #green

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by- Akash Pharande, Managing Director – Pharande Spaces

The problem of rapidly worsening air quality in India has a direct correlation to our housing choices. Increasing urbanization, industrial proliferation and population growth are causing more and more homebuyers to prioritize the quality of their living environments.

Urban Centers – The Worst Hit

Indian city centres face severe air pollution threat:

Heavy Traffic – The congested city centres with high population and traffic density contribute significantly to vehicular emissions.
Industrial Pollution – Proximity to industrial zones with obsolete or nonexistent pollution control measures worsens air quality.
Urban Heat Island Effect – The concentration of buildings and human activities in cities leads to higher temperatures – which, in turn, escalate pollution levels.
Lack of Green Spaces – The absence of parks and green areas in densely populated urban regions makes natural air filtration impossible.

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A Shift Towards Cleaner Surroundings

Many suburban areas with lower population density and more green open spaces offer relief from urban pollution. Planned cities, like Chandigarh, Navi Mumbai and PCMC (Pimpri Chinchwad Municipal Corporation) showcase the effective separation of residential and industrial zones, improving overall air quality for all concerned.

In the absence of planned development, many suburban paradises are at risk. Rapid real estate development will eventually turn green sanctuaries into polluted urban-like environments.

Exploring the Solution – Integrated Townships

To tackle this issue, the Indian residential real estate sector has introduced integrated townships as a solution that can withstand environmental challenges.

Captive Green Spaces – These townships prioritize green open spaces like parks and gardens to create an environmentally sustainable environment.
Reduced Vehicle Emissions – Because they incorporate schools, shops and recreational facilities within their precincts, townships reduce overall vehicle movement.
Sustainable Infrastructure – Initiatives like rainwater harvesting and waste recycling promote eco-friendly living practices.
Combating Urban Heat Islands – Development plans for townships include extensive green areas, tree-lined streets, natural or artificial water bodies, and renewable energy sources to combat heat accumulation. By securing these advantages, integrated townships ensure that the area remains eco-friendly – now and in the future.

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Tips for Prospective Home Buyers to Avoid Air Pollution Risks

Begin by examining air quality data for different regions. This information is often accessible through environmental monitoring agencies or online air quality indices. Check websites that offer real-time air quality updates to evaluate current atmospheric conditions.
When selecting locations, consider the presence of green spaces. Look for areas close to parks, reserved forests, and other open green zones, as they result in better overall air quality. Don’t choose a home in a project too close to a highway or an industrial zone, or prone to traffic bottlenecks. Also note that elevated areas often offer better air quality because heavy pollution smog primarily settles in low-lying areas.
Evaluate the condition of roads and public transportation as this will determine how much emissions accumulate in an area. Do internet research and check news to review the area’s infrastructure and future development plans to anticipate changes that could impact air quality.
When checking out a home, find out if it has adequate cross-ventilation and good green home features. Energy-efficient homes typically provide better air quality thanks to their sealed and insulated environments.
You can, to some extent, enhance indoor air quality by using indoor plants. But this is obviously a very minimal solution to a major problem

In conclusion

With air quality playing an important role in home purchasing choices, buyers must prioritize features that ensure a clean and healthy living environment.

By picking the right location and project, you can protect your and your family’s well-being and still enjoy the conveniences of modern life. Opting for integrated township living is a wise decision amid rapidly declining air quality in urban India. In any case, make any housing with a lot of research and awareness about air quality.

And remember – the clean environment you get in a currently green but quickly developing suburb may not be guaranteed tomorrow. Ensure that your loved ones can breathe freely – not only today but also in the future.

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Pune’s Real Estate Boom – Is Now the Perfect Time to Invest?

Jul 10, 2024 by Mansi 0 Comments #Akash Pharande, #ANAROCK, #MMR, #Pune, #Real Estate Boom

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by-Akash Pharande, Managing Director – Pharande Spaces

Pune, one of India’s most vibrant real estate markets, has experienced rapid changes over the past few years. Latest data from leading real estate consultancies show a scenario of strong housing price increases and ongoing changes in market dynamics, pointing towards further price hikes in the future.

According to real estate consultants Anarock, Pune and the Mumbai Metropolitan Region (MMR) saw over 50% of the overall housing sales in Q2 2024 among the top seven cities. This is a resounding statement for Pune — a city once considered the laid-back cousin of the financial capital and is now competing in the same league.

Rising Property Prices: A Continuum

Recent data from various leading consultancies clearly show Pune’s trend of rising property prices. There has been a significant 20-23% year-on-year increase compared to Q1 2023. This resilience and rising demand are driving prices higher. Several factors explain Pune’s growing housing prices

– Economic Growth & Employment Opportunities: Pune’s real estate market has improved significantly due to its development into a major IT and manufacturing center. High demand from professionals seeking homes near their workplaces has led to a surge in property values in and around IT parks and manufacturing hubs.

– Infrastructure Development: Ongoing and planned infrastructure improvements such as road extensions, new flyovers, and the Pune Metro are boosting the city’s property values and connectivity. This dynamic is evident across Greater Pune, which includes the Pune Municipal Corporation (PMC) and the infrastructure-driven Pimpri-Chinchwad Municipal Corporation (PCMC).

– Shift in Housing Segments: Pune’s housing market is now driven by mid-range and premium-to-luxury housing, thanks to higher demand for such options. The higher purchasing and borrowing power of the target clientele supports ongoing price increases.

pune real estate

So – Buy Now or Later?

To answer this very important question, it is necessary to consider some fundamentals. Pune’s strong economic growth draws professionals and families from various industries. The city offers a high livability quotient, better housing affordability, and a superior climate compared to neighboring Mumbai. It also boasts top-grade healthcare and education options and proximity to Mumbai, Maharashtra’s main economic hub.

Pune has delivered an overall residential price appreciation of well over 20% in just one year. Naturally, both end-users and investors find the city very appealing, especially considering its rapid growth since 2020, which saw Pune’s lowest year for housing demand in the last decade due to the COVID-19 pandemic.

Job losses, economic disruption, and the disappearance of construction labour brought building activity to a halt. The lockdowns caused a significant decline in real estate market demand and supply.

But in 2021, the market began to bounce back powerfully. With a 17% year-on-year increase, Pune saw the highest property sales since 2013. Buyer confidence increased steadily. In 2023, the Pune housing market rebounded remarkably. The current year is poised to set new benchmarks.

The writing is clearly on the wall — there is no stopping the Pune housing market, and a wait-and-watch stance can cost buyers dearly. For those who want to buy a home in Pune, either to live here or to reap investment returns, there is a strong argument for acting now. Historical data and current patterns clearly imply that the city’s property values will keep rising.

Given the continuous growth of the city and its expanding economic base, homes bought now will deliver significant value addition over time. Pune is currently second only to Mumbai in new residential launches and sales and is also attracting increasing interest from institutional investors eyeing its commercial real estate market.

This means more workplaces, more jobs, and even higher housing demand driving prices steadily northward. For potential buyers and investors, the message is clear – there is no equity in waiting for a more opportune time in Pune’s thriving housing market.

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Real Estate’s Hopes from The Upcoming Union Budget

Jun 25, 2024 by Sujata 0 Comments #Affordable and mid-income housing, #affordable housing, #Akash Pharande, #Better Finance Access, #budget home projects, #builders, #cash-flow, #CLSS, #credit guarantees, #economic growth and employment, #emerging areas, #Enhanced Credit-Linked Subsidy Scheme (CLSS), #Fast Track Infrastructure, #financial assistance, #financial stress, #financing, #First-Time Buyers, #GST rate, #GST Reforms For Developers, #homebuyers, #Housing for All scheme, #housing projects, #Indian housing industry, #Indian real estate sector, #interest rates, #Interest Subsidies and Housing Loans, #interest subsidy for housing loans, #land acquisition process, #land records management system, #Land Reforms, #LIG and middle-class, #low and mid-income, #metropolitan areas, #metros and railways, #mid-income housing buyers, #Pharande Promoters & Builders, #Pharande Spaces, #policies and tax incentives, #Policy Measures and Provisions, #Pradhan Mantri Awas Yojana (PMAY), #real estate investment fund, #regulatory reforms, #Rental housing, #Rental Housing Policy, #rental income, #Single-window Clearance, #single-window clearance system, #stamp duty, #tax breaks, #Tax Deduction for Housing Loan Interest, #The Union Budget

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By Akash Pharande, Managing Director – Pharande Spaces

The Indian real estate sector is a crucible of economic growth and employment. The sector stands at a crossroads as the government prepares to present its Union Budget. Though it has massive potential, the Indian housing industry still faces numerous hurdles.

To generate more growth and address the housing needs of the growing population, particularly in the low and mid-income segments, the budget must include tax breaks, regulatory reforms, and financial assistance measures.

Affordable and mid-income housing

Affordable and mid-income housing is the foundation of the real estate industry, meeting the urgent housing needs of the enormous LIG and middle-class population. To significantly boost this section, the following strategies are critical:

Interest Subsidies and Housing Loans: Widening the scope of the Pradhan Mantri Awas Yojana (PMAY) and raising the interest subsidy for housing loans is the need of the hour. Doing this will make homeownership more affordable. Reducing interest rates will also lower the financial stress put on aspiring homebuyers.

Enhanced Credit-Linked Subsidy Scheme (CLSS): Extending and improving the CLSS can provide financial relief to mid-income housing buyers. Both the income eligibility threshold and subsidy amount should be raised.

Single-window Clearance for Affordable Housing: A single-window clearance system for budget home projects will help considerably to make the incredibly complex approval process more streamlined and simple. This, in turn, would help to decrease delays in possession of such units and reduce the overall costs.

Tax breaks to lighten the load

Tax breaks are critical when it comes to making homeownership more approachable, and they can also encourage builders to take on new affordable housing projects:

Raise Tax Deduction for Housing Loan Interest: Raising the tax deduction limit under Section 24(b) of the IT Act is long overdue and the need of the hour. The deduction limit should be increased from the current Rs. 2 lakh to at least Rs.3 lakh or even more.

Reduce Stamp Duty: The government can encourage state governments to cut their stamp duty rates, which account for a significant portion of the cost of homeownership. Even a temporary decrease or waiver of stamp duty on affordable and lower-middle-income housing can boost demand and sales.

Incentives for First-Time Buyers: First-time homebuyers should get further sentiment boosters. For instance, the government can raise the deduction limit under Sections 80EE and 80EEA for such buyers.

GST Reforms For Developers: GST rates applicable on construction materials and services can help lower overall project costs for builders. Also, a reduced GST rate for affordable housing projects would help attract more builders to this vital segment and to pursue such projects.

Policy Measures and Provisions: Indirect Increases

Apart from direct financial boosters, the budget can introduce many policy initiatives that will indirectly improve sentiment in the housing sector:

Fast Track Infrastructure: This government is certainly determined to develop infrastructure like roads and public transport such as metros and railways. This helps expand the metropolitan areas and boosts affordable housing, which is usually developed in emerging areas where land is cheaper and infrastructure is still catching up. However, we need a much faster roll-out of such projects so that connectivity to such areas improves at a faster pace.

Land Reforms: Simplifying the overall land acquisition process will help developers speed up their supply of new projects. There is an express need for an open and effective land records management system that reduces disputes and, therefore, project delays.

Better Finance Access: Developers always need access to financing, but smaller and medium-scale players are at a bigger disadvantage than big players. The budget could consider announcing a separate real estate investment fund and also credit guarantees to such builders so that their cash flow improves.

Rental Housing Policy: Rental housing would benefit from favourable policies and tax incentives for those who cannot afford to buy homes. Implementing a model tenancy law and providing tax breaks on rental income would help a lot.

The Union Budget is an ideal platform and opportunity for the government to give teeth to its Housing for All scheme. While the original 2022 deadline was not met, it is not too late to revive this dream and make it a concrete reality. The Indian real estate sector certainly looks forward to such boosts for both homebuyers and builders.

About the Author:

Akash Pharande is Managing Director – Pharande Spaces, a leading real estate construction and development firm famous for its township projects in Greater Pune and beyond. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer of townships in the region. With the recent inclusion of Puneville Commercial into one of its most iconic townships, Pharande Spaces has taken a major step towards addressing Pune’s current and future requirements for fully integrated residential-commercial convenience

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Greater Pune – A Urban Expansion Benchmark by PMRDA

Jun 11, 2024 by Sujata 0 Comments #affordable housing projects, #Akash Pharande, #Greater Pune, #Haveli, #Hinjewadi, #industrial hub, #IT, #IT hub Hinjawadi., #Junnar, #Khed, #Lonavala Municipal Councils, #Maharashtra’s favourite tourist destination., #MahaRERA (Maharashtra Real Estate Regulatory Authority), #Manufacturing, #Maval, #middle, #modern amenities, #Mulshi, #new housing projects, #Pharande Spaces, #Pimpri, #Pimpri-Chinchwad Municipal Corporation (PCMC), #PMRDA, #Population Growth and Urbanization, #Pune, #Pune Municipal Corporation (PMC), #Pune's population, #services sector, #Shivajinagar, #Social Infrastructure, #Talegaon Dabhade, #The Pune Metropolitan Region Development Authority (PMRDA), #upper-middle-class homebuyer, #Urban Expansion

By Akash Pharande, Managing Director – Pharande Spaces

The Pune Metropolitan Region Development Authority (PMRDA) oversees an extensive and strategically significant territory now collectively referred to as Greater Pune. It covers both urban and rural regions.

The two key territories under Greater Pune are the Pune Municipal Corporation (PMC) and the Pimpri-Chinchwad Municipal Corporation (PCMC). PMRDA also governs the pivotal Talegaon Dabhade and Lonavala Municipal Councils – the former a strong and growing industrial hub, and the latter arguably Maharashtra’s favourite tourist destination.

Beyond these municipalities, PMRDA also administers numerous suburban and rural areas which are vital for Greater Pune’s expansion and development. These include the rapidly developing industrial hotspots Chakan and Pirangut, as well as Pune’s pre-eminent and pioneering IT hub Hinjawadi.

Among the rural areas are Mulshi, Maval, Khed, Haveli, and Junnar, which are important for their agricultural contributions and potential for future development. Known for their scenic landscapes, Mulshi and Maval are already attracting considerable real estate development.

As can be seen, Greater Pune is vast and diverse and showcases PMRDA’s governance across many major urban centres, IT hubs, industrial zones, and rural areas.

Over the past decade, Greater Pune’s exponential growth stands as a strong testament to PMRDA‘s strategic planning and robust implementation of development initiatives. But is this pace of growth really necessary? Let’s look at the facts.

Population Growth and Urbanization

As of 2024, Pune’s population is estimated to be around 7.35 million in the metropolitan area and approximately 4.44 million within the city limits. Its vast talent pool across all employment categories is Greater Pune’s greatest asset, and this population needs to be accommodated.

It stands to reason that the region’s real estate sector has been booming. According to data from MahaRERA (Maharashtra Real Estate Regulatory Authority), there has been a consistent rise in the launch of new housing projects. In 2023 alone, Pune saw over 50,000 new homes launched, while Pimpri-Chinchwad added 20,000.

Prominent real estate developers have been having a field day – or rather, a field epoch – launching massive projects to aid this expansion. Given that home seekers in Greater Pune are looking for options across categories, a large number of these projects offer modern amenities that cater to the middle and upper-middle-class homebuyer segments.

While the supply of affordable housing projects has been more muted due to decreased demand, the market is replete with options even in this category.

Infrastructure Development

Across the length and breadth of Greater Pune, PMRDA has consistently focused on infrastructure development as a cornerstone of the region’s urban growth. One prime example is the Pune Metro which, in just the first phase, will connect key areas like Hinjewadi, Shivajinagar, and Pimpri. The reduced commute time creates more housing demand across all areas.

Additionally, the 128 km Ring Road will decongest city traffic by giving Greater Pune an alternative road travel route and connecting various parts of the region across major highways and economic zones. For Pune’s economic triple engine of IT, manufacturing, and the services sector, this spells gold and will massively boost trade and commerce. According to recent reports, absorption in Pune’s commercial office space reached 6.5 million square feet in 2023.

Sustainable Urbanization

PMRDA‘s commitment to Greater Pune includes a strong focus on sustainable urbanization. It has now made it mandatory that green spaces and energy-efficient designs be included in all new projects. Also, digital infrastructure, smart transportation, and efficient waste management have been prioritized.

Social Infrastructure

The growth of Greater Pune extends beyond just economic and infrastructural development. PMRDA is keenly aware that for overall quality of life and livability, adequate social infrastructure to support its growing population is of paramount importance. Not surprisingly, the region under its aegis boasts top-grade schools and colleges, hospitals, and recreational amenities.

To summarize…

Under the able administration of PMRDA, Greater Pune’s urban expansion has emerged as one of the most impressive success stories of planned growth, economic prosperity, and sustainable development. It sets a new benchmark for urban and urbanizing India, demonstrating how strategic governance and innovative planning can create a thriving, modern metropolis.

With continued focus on infrastructure, sustainable development, and quality of life, Greater Pune is poised to be a model city for the future, embodying the aspirations of a rapidly urbanizing nation.

About the Author:

Akash Pharande is Managing Director – Pharande Spaces, a leading real estate construction and development firm famous for its township projects in Greater Pune and beyond. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer of townships in the region. With the recent inclusion of Puneville Commercial into one of its most iconic townships, Pharande Spaces taken a major step towards addressing Pune’s current and future requirements for fully integrated residential-commercial convenience

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The Future of Urban Living – The Sustainable Communities of Tomorrow

May 20, 2024 by Sujata 0 Comments #Akash Pharande, #Amenities, #Amsterdam, #and recreational facilities, #Berlin, #city planners, #Commercial, #compact urban forms, #congestion, #cycling, #Dubai Marina, #Europe, #Hamburg, #Hong Kong, #India, #Infrastructure, #integrate residential, #Integrated Living, #integrated townships, #JLL India, #Masdar City, #master-planned communities, #neighborhoods, #Netherlands, #New York, #North America, #Pharande Spaces, #pollution, #Portland, #public transportation, #Punggol, #self-contained integrated projects, #self-sufficient, #Singapore, #Stockholm, #sustainable urban development, #Sweden, #Tampines, #The Global Scenario, #Tokyo, #United Arab Emirates, #urban planning, #Vancouver, #walking

By – Akash Pharande, Managing Director – Pharande Spaces

Akash Pharande, Managing Director - Pharande Spaces

I travel a lot to understand how different countries address their urban sprawl because we use such insights to design integrated townships here in India. In fact, one result of these travels was our partnering with a globally acclaimed architect who helped us recreate a global residential experience in India.

However, my main takeaway from this globetrotting has been far less positive – the alarming rate at which rampant urbanization is challenging even the most glamorous world cities.

As cities’ populations overflow, traditional urban infrastructure groans and often crumbles under the strain of housing demands. Did you think that overcrowding and declining living standards are the order of the day only in India? Far from it – it is a global phenomenon.

The Global Scenario

In the thronged streets of New York, Tokyo, and Hong Kong – and even in Berlin, Hamburg, and Stockholm – urban sprawl running wild is in evidence everywhere. In India, we have accepted congestion, pollution, and stressed infrastructure, but be aware that very few countries are exempt from them anymore.

Across the world from Asia to Europe to North America, local governments and expert city planners are implementing the only viable solution. You guessed it – integrated townships.

In Singapore and the United Arab Emirates, self-sufficient, self-contained integrated projects have in fact been at the forefront of urban planning for many decades. Singapore, in particular, is famous for master-planned communities such as Punggol and Tampines, which integrate residential, commercial, and recreational facilities to create vibrant and self-sustaining neighborhoods.

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In the UAE, integrated developments like Dubai Marina and Masdar City deliver comprehensive living and working environments for residents. In Europe, Sweden and the Netherlands have embraced the concept of integrated townships to promote sustainable urban development.

Stockholm and Amsterdam have pioneered eco-friendly neighbourhoods that prioritize walking, cycling, and public transportation while incorporating green spaces and mixed-use developments.

In North America, integrated townships have gained traction in response to urban sprawl and the growing trend for more walkable and inclusive communities. Vancouver in Canada and Portland in the United States have implemented policies to encourage mixed-use development and compact urban forms.

This approach has given rise to highly integrated neighborhoods that provide everything their residents will ever need – living spaces, offices to work in, as well as shopping malls and recreational amenities.

Integrated Living – No Alternatives

If this sounds like a marketing prospectus for a modern integrated township in India, it’s because while we certainly haven’t pioneered the concept, we have certainly caught on to it big time. And for good reasons.

A report by international property consultants JLL India entitled ‘Livability quotient – a paradigm shift in India’s emerging cities’ puts it very aptly – “A balanced lifestyle contributes highly to the livability quotient of a city or township,” it states. “Amenities for leisure and recreation such as sports facilities, gymnasiums, clubhouses, malls and shopping streets are considered lifestyle amenities and are much appreciated by users.”

“Townships managed by private developers have an advantage over cities managed by local governments. The high level of interaction that happens between a township developer and customers naturally enables a focused delivery of services.”

I guess there’s no better way of putting it. As our larger cities draw more and more inward migration because of their employment prospects, we certainly need better solutions to house everyone. India’s growing upper-level middle class expects to find housing that multi-tasks and delivers on their lifestyle preferences.

What better solution for this than integrated mixed-use developments where they can seamlessly transition between living, working, and leisure activities without enduring long commutes?

As the successful eco-cities of Scandinavia and the master-planned communities of Singapore and the UAE demonstrate, integrated townships are a concept whose time has come – and is, in fact, by now an imperative in India.

intergrated township

A Long Way to Go

As Anarock Property Consultants put it, the growing demand for integrated townships in India has risen even more in the wake of changing housing preferences post-pandemic. However, despite the increased interest, integrated townships still represent only a fraction of the total housing supply in India. Since 2010, only about 2% of all housing projects in the top seven cities fell in this category,

Clearly, we are missing something important here.

India is a nation at a crossroads in its urbanization journey. Rapid population growth, rural-urban migration, and fragmented urban planning have spawned a host of challenges, from sprawling urban sprawl to choked traffic arteries and polluted air. The need for holistic urban planning has never been more pressing.

Integrated townships offer hope amidst this urban chaos. With the government’s ambitious plans to create smart cities and revitalize urban infrastructure in a country where land scarcity, fragmented development, and outdated infrastructure are the norm, there is quite simply no other solution.

Without integrated townships, the status quo in India is frankly unsustainable. With every passing year, our trajectory of urbanization is spiraling further out of control – with far-reaching consequences on our society, our environment, and our economy.

Beyond just bricks and mortar, integrated townships also serve as catalysts for economic growth and building strong, wholesome and supportive communities. They provide local employment opportunities, reduce dependence on city centers, offer higher returns on investment, and provide a holistic solution to the many challenges we face in our cities.

About the Author:

Akash Pharande is Managing Director – Pharande Spaces, a leading real estate construction and development firm famous for its township projects in West Pune and beyond. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer of townships in West Pune. With the recent integration of Puneville Commercial into one of its most iconic townships, Pharande Spaces taken a major step towards addressing Pune’s current and future requirements for fully integrated residential-commercial convenience.

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Commercial Integration – Reshaping India’s Residential Landscape

By – Akash Pharande, Managing Director – Pharande Spaces

Akash Pharande, Managing Director - Pharande Spaces

One important feature changing how people live and work in India’s fast-urbanizing terrain is the incorporation of commercial areas into residential townships. While this concept – which combines residential areas with workplaces, shops, and recreational areas – is not new, its uptake has sped up recently, particularly in the wake of COVID-19.

Evolution and Origins

Mixed-use projects are nothing new to India; even in pre-independence India, residential areas and bazaars coexisted together. But in the early 2000s, integrated townships, as they are now known, started to take off. Encouraged by India’s economic expansion and rapid urbanization, developers realized the benefits of creating an all-encompassing residential experience for the growing middle class.

This trend became even more evident after the 2008 financial crisis. This is when forward-thinking builders began to seek out ways to make projects more profitable and desirable. Including residential and commercial areas into one complex promised to boost footfall in retail malls by providing a captive market for retailers. Office buildings within the same precincts gave homeowners the possibility of walking, bicycling to work, or taking a short drive there with no traffic woes to contend with.

The COVID-19 epidemic kicked off a major move towards remote work, less crowded residential areas with sufficient greenery, the convenience and safety of having necessary retail outlets within easy reach, and small commutes to work. In short, the pandemic solidified the already strong attraction for integrated townships.

integrated township

The Coworking Revolutions

Residential-commercial complexes like integrated townships are becoming all the more relevant because of the increasing popularity of coworking. If we take Pune as an example, the relevance and impact of coworking is hard to miss.

This city has evolved massively from its previous tags of ‘Oxford of the East‘ and ‘Pensioner’s Paradise’. Pune’s vibrant educational institutions and IT/ITeS sector generate and attract more and more young professionals and millennial entrepreneurs. Simultaneously, even some of the biggest MNCs in Pune have been looking at cutting costs after COVID-19.

Coworking spaces are the logical solution to bring down corporate costs and provide a fertile environment for collaboration, networking, and creative engagement. The most successful ones are located in and around residential catchments, so their availability in integrated townships is a win-win proposition.

Pune has been seeing steady growth in the coworking segment, with more operators of varying sizes constantly entering the fray. Especially after COVID-19, the coworking solution has found favour with many companies as well as the city’s growing young population. Pune’s thriving startup culture has contributed hugely to its growing popularity, as have the gig economy and service-based companies such as digital marketing, automobiles, and blockchain.

Not surprisingly, leading property consultants reported that 2021 saw a no less than 30% increase in demand for integrated townships over the same period the year before. Where work-from-home (WFH) has become ingrained, especially in metros and tier-1 cities, this rise is significant. Compared to exclusively residential projects, mixed-use townships have seen higher residential sales following the epidemic.

work-life 2.0

Integrated commercial-residential townships are growing in popularity in India because of:

– Work-Life Balance: Integrated townships encourage a healthy it by merging living and recreational areas, and minimizing travel time to and from work. This is something that the modern workforce appreciates more and more.

– A Sustainable Lifestyle: Sustainable living is becoming more and more important to urban Indians. Mixed-use townships lessen the need for driving and therefore have a lower carbon footprint overall. The more modern integrated townships also offer advanced green features such as wastewater recycling, use of solar lighting and heating, green areas to act as lung space, and proper cross-ventilation in flats to reduce cooling costs in summer.

– Profitability for Developers: Integrated townships with commercial components baked in are a lucrative proposition for developers. The added appeal and convenience factor of these projects usually makes them more expensive than ordinary residential projects; however, Indians today are willing to spend more on a sustainable, convenient, and hassle-free lifestyle. Also, there is considerable brand value involved in creating and sustaining modern integrated townships, since such projects require specialized knowledge and considerable capital to build and maintain.

– Policy Support: Integrated townships are encouraged and promoted by Indian government programs like the Smart Cities Mission, and sustainability factors are also incentivized for both homebuyers and developers. Mixed-use integrated projects in suburban areas are also actively encouraged by the government because they help decongest urban areas.

– Buyer Preferences: The pandemic changed consumer preferences considerably. More and more Indians are choosing to live in spacious, uncluttered, and health-promoting projects that provide quick access to workplaces and the requirements of daily living. Mixed-use integrated townships negate most of the stresses and health hazards of inner-city life. They are also ideal for remote working scenarios.

The Future of Mixed-use Townships

The trend of developing residential- and commercial projects is not only a durable one but the very call of the future in India. Companies’ growing acceptance of remote working arrangements will increase demand for residential developments that meet professional requirements even more. Moreover, the continuous urbanization and increasing disposable incomes in India point to a long-term interest in these kinds of living arrangements.

The boundaries dividing residential and commercial areas are blurring as urban India develops. More than just a real estate fad, integrated townships are the logical answer to the evolving demands and lifestyles of contemporary Indian society. Their increasing popularity is bringing about a profound change in urban planning and development—a move toward a more comfortable, sustainable, convenient, and all-encompassing residential experience.

About the Author: Akash Pharande is Managing Director – Pharande Spaces, a leading real estate construction and development firm famous for its township projects in West Pune and beyond. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer of townships in West Pune. With the recent integration of Puneville Commercial into one of its most iconic townships, Pharande Spaces taken a major step towards addressing Pune’s current and future requirements for fully integrated residential-commercial convenience.

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Analyzing Indian Real Estate During Election Years

May 8, 2024 by Sujata 0 Comments #Akash Pharande, #Election, #Future Outlook of real estate, #investors, #Managing Director - Pharande Spaces, #real estate, #real estate sector, #realestate before elections

akash

By – Akash Pharande, Managing Director – Pharande Spaces

The political atmosphere in India has a big impact on the property market, just like it does in other countries – especially during general election seasons. Election cycles have had a discernible impact on the real estate market over the last twelve years. What should end users and investors expect after the forthcoming general elections? Let’s examine the behavior of the Indian housing market before and after the general elections.

Trends Ahead of the Election

In the past, we have seen that the Indian real estate market tends to slow down in the run-up to general elections. This is because buyers and investors become cautious when there is uncertainty surrounding the results of elections and possible changes to policy. Pre-election data usually shows a trend of lower transaction volumes and reduced rate of property price rises.

For example, the market saw a notable decline in sales and new launches during the 2014 general elections. The top seven cities in India had an almost 30% drop in home sales in the quarters preceding the elections. Similar patterns were seen in 2019, with the primary and secondary markets slowing down as aspiring buyers and investors opted to wait and watch.

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Recovery Following Election

The housing market usually rebounds markedly after elections. Clarity on government policy and restored consumer confidence are often the driving forces behind this rebound. Following the 2014 elections that resulted in the arrival of a stable government, there was a notable upturn in the market. Positive consumer sentiment and increased investment caused an almost 50% increase in sales in the following months, according to reports.

These patterns were repeated in the 2019 elections. Again, the reviving market momentum was supported by the guarantee of political stability. Another factor at play was that people now had confidence in the Real Estate (Regulation and Development) Act or RERA. By the end of 2019, new investments were flooding the market, not only in the residential space but also in commercial real estate.

Current Market & Future Outlook

This year, the housing market in India has remained resilient even in the period of uncertainty before the general elections. The current government has taken several measures to increase housing demand, infrastructure development, and economic reforms. A general confidence that this government will continue to remain in power has provided considerable protection from the typical pre-election downturn.

After the election, the Indian housing sector has every reason to remain upbeat. The market will definitely rise if the party in power can maintain the policy and safeguard economic stability. There are also industry expectations that the GST applicable on building supplies may be moderated with upcoming regulations. This would prove to be a big shot in the arm for both developers and their customers, as will help keep property price rises in check.

Apart from that, there are expectations that the availability of financing for the housing sector may improve and that affordable housing once again becomes a priority sector for the government. All this will certainly contribute to steadily improving housing market dynamics.

Implications for Investors

The post-election phase will deliver very attractive opportunities for both buyers and investors of residential real estate. Once the government announces more measures to boost the market and stabilize the economy further, real estate will rise and yield very significant returns due to price appreciation and increased demand. Such measures will dovetail very well with the growing trend of digitization and transparency in real estate transactions.

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The Cost of Urbanization

Pune’s Development Trajectory

A Steady Disconnect From Nature

To conclude