Growth of Real Estate in Tier II & III Cities
In conversation with Sreyasi Maity, Mr. Siddharth Vasudevan Moorthy, MD, Vascon Engineers speaks about Growth of Pune Real Estate Market
- What are the overall key factors contributing to Pune city’s growth activity?
Pune is a blessed city to have more than one industry to contribute to its growth. It has the traditional industrial belt, IT, Education, Automobile, Construction and now healthcare. Hence, even in bad times, the city still has a strong source of revenue from one industry or another.
- The reasons for success of commercial real estate as indicated by increasing private equity inflows in Tier II & III cities
First of all, Pune is one of the Tier 1 cities of the 8 Tier 1 cities identified from across the country. Value for money has been one of the main reasons for the success of Commercial real estate in the city. A large pool of well-educated individuals with good control over multiple reasons has garnered interest of many companies thus driving demand in such cities.
- Has Smart Cities Mission given the required push to the city development?
Pune stood at No 2 in the 1st round of selections for Smart cities. To make a city smart requires not just investment, but also maintenance and most importantly education of people. Pune has been one of the first cities to be declared ODF. There is still a long way to go as a smart city entails a lot of aspects such as adoption of latest technologies, sanitation and cleanliness etc.
- In terms of affordable housing, the incentives and support required for homebuyers in semi urban areas
The key to making affordable housing successful is accessibility to funds at a reasonable rate of interest to home buyers. Most of these people have the capacity to repay, but do not have proper documentation ( a maid or a taxi driver for example).
- What are the major challenges of Pune realty market?
Pune’s biggest challenge has always been its public transport infrastructure. Thus there is reluctance to stay in the outskirts where housing is cheaper. Thus resolving this could really be of great benefit to buyers and keep the property prices in check.