Pune: Real estate businesses are looking forward to the forthcoming Union Budget 2012 in the expectation that it will contain some pragmatic provisions that will lower effective price barriers for home-seekers. Real estate developers say the city continues to face problems including high lending rates and construction costs, insufficient infrastructure and lack of affordable housing. Broader incentives for development of affordable housing are needed, to encourage more developers to become active in this important sector and increase the supply of budget homes in the city, the developers said. Anil Pharande, vice-president of Credai (Confederation of Real Estate Developers Associations of India) Pune Metro said that on a macro level, a higher allocation of infrastructure funds for housing can be a favourable approach. “The government can set clear guidelines on timely commencement and completion of projects and link disbursement of these funds with adherence to these guidelines,” he said. Pharande said removal of the 10 per cent service tax on residential real estate construction, which increases the cost of new homes by as much as 3 per cent, is critical for a cost-sensitive market like Pune, which has a sizeable lower mid-income segment. The 1 per cent interest rate subsidy on home loans can also work as a good measure to bring affordability, Pharande said, adding that the present eligibility limit of loan amount of Rs 20 lakh should be raised to Rs 30 lakh. Such a step will help people think about buying apartments of decent sizes, Pharande argued. Reducing taxes such as excise, VAT and stamp duty on real estate will also make home purchase attractive, he added. Also important would be reducing tax burden on rental income, to put a downward pressure on rents which are currently very high, Pharande said. He also said the Reseerve Bank’s restrictions on project finance available to developers is adding to housing cost as developers have to borrow from expensive private sources. According to Rohit Gera, managing director of Gera Development, the data about Pune’s residential real estate sector indicates that there is no scope for any reduction in prices. “The real question is the customers' ability to afford the increased prices. The fact that homes are needed is not the question – the real question is whether the aspirations of home-buyers can be met on the basis of affordability,” Gera said. Given the direction of inflation, indications from the RBI that interest rates will soften, the current cost structure for developers and most importantly, the overall stock position and price movement in 2011, Pune will see a price rise of 15 to 18 per cent during 2012, Gera said. Sanjay Bajaj, managing director for Pune at the real estate advisory firm Jones Lang LaSalle India, said Pune’s property market has been displaying remarkably resilient investment fundamentals. Due to the steady demand, the expected rate reduction in residential real estate has not materialized; in fact, there have been selective increases in many well-located and configured projects by branded developers. Echoing Pharande, Bajaj said the 1 per cent interest rate subsidy which was provided for loans on affordable housing last year should be expanded to include a wider price band of budget housing. “We also suggest that more funds be allocated to infrastructure formation, which would help unlock the inherent value of the property markets in Pune's peripheral areas,” he said. “The highest demand for Pune residential real estate comes from its significantly large corpus of low-to-mid income buyers. As such, this market is extremely sensitized to price and interest rate fluctuations that would not have as much of an impact in larger metros,” Bajaj said.
First of all I would like to thank you and the Gera team for organizing different workshops at our doorstep.
The best thing I have done to my kids is that I took a right decision to buy a flat in Gera.
Because of this decision , Vishnu could attend the development workshops that were conducted.
Vishnu was a shy child who didn't like to participate in any of the programmes.
As far as Dale Carnegie workshops is concerned it has given him a lot of confidence and was presenting things in a much better way and I can see a lot of improvement in him.In simple words u made a person(..
My son Tattva had been enrolled in the intermediate level and has been coached by the Vishwanathan Anand Chess Academy coach . Tattva has made remarkable strides and will be on his way to get his FIDE rating in November. A lot of credit goes to the mentor for his unique way of handling his students. He has been very patient while working with Tattva on his areas of improvement. In addition before the tournament the coach had voluntarily added additional classes and doubled his efforts to get a better performance out of Tattva. He has shown complete ownership which is commendable. I hope he continues to develop more and more chess players in the coming days...
It's a wonderful experience with the tennis academy and my daughter liked it. Also she is getting good training and love for the game.
The coaches are good and we would continue using their expertise for Nishita going onwards. We are also looking forward for signing (actually instrument) and dancing coaching too.
This is to share with you that both my little girls (Aditi Anisha) are really enjoying their Tennis classes at the Mahesh Bhupathi Tennis Academy.
I always find them very excited whenever there is TENNIS CLASS, and this excitement matters to both of us, as the kids seems to be interested.
It’s nice to see them constructively engaged, and coming home happy and having felt productive in their own child little way. It’s a great way for them to bond with other young ones and feel belonged to a larger community.
Thanks to You, Gera Developments and MBTA for giving our young ones, an opportunity for a wonderful learning experience.
Now they are looking forwar..
Regarding the workshops & different academy sessions, it has been wonderful experience so far for Shlok and we’re looking forward for the new opportunities.
It’s absolutely fantastic to have all these academies in the premises, and that too from the renowned personalities, so we can send kids without worrying about other factors like safety & all.
And most importantly, a big thanks to you for the lovely follow-ups & timely updates about the upcoming/ongoing sessions.