PropLadder Real Estate News

City real estate slows as fringe areas fill up

Buyers are looking beyond the city, focusing on lower rates and less hassle

The city real estate market has gone down in the last six years as an increasing number of housing projects are coming up on the outskirts, given the availability of land, less government tax and better connectivity. According to the Pune Municipal Corporation (PMC) building permission department, they have given permission for only 3,866 projects in 2014-15, one of the lowest figures since 2007-08.

On Wednesday, PMC has tabled its Environmental Status Report (ESR) at the general body meeting, which included details of permission sanctioned to residential and commercial projects from 2007-08 to 2014-15.

The highest number of permissions given was to 4,623 projects in 2011-12. Builders claim that limited open land within the city, high building permission charges, delay in sanctions and skyrocketing prices are pushing people to look outside corporation limits.

Rohit Gera, managing director of Gera Developers, said, “The gap between demand and supply has widened. People are concentrating on affordable housing, which is possible only outside the city. There are almost 90,799 homes lying unsold within city limits.”

Sujay Kalele, chief executive officer of Kolte- Patil constructions, said, “Development charges and ready reckoners (prices of property for a given area published and regulated by the state) are far higher within city limits. There is a difference of Rs 4 to 5 lakh. Also, it is tedious and time-consuming to get a plan passed in the corporation. It used to be two or three months five years ago, but now it takes nearly a year.”

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