Interview

Overview of Pune’s Land Development: Past, Present, and Future- By Mr Shantilal Kataria, MD of Aditya Builder (Governing Council Member – Credai National) Pune, one of India’s oldest cities with a rich history dating back to the 8th century, has undergone significant land development over the years. Initially, Pune served as an agricultural and trading hub, with its focus on constructing temples, forts, and other structures that contributed to its cultural and economic growth. In recent times, Pune has emerged as one of the fastest-growing cities in India, attracting numerous IT and manufacturing companies. This growth has led to substantial land development, encompassing residential and commercial projects, infrastructure improvements, and transportation networks. Among the notable projects in Pune are the Pune Metro, the Mumbai-Pune Expressway, the upcoming Ring Road, and several smart city initiatives. Locations like Baner, Balewadi, Mundhawa, Kharadi, and PCMC are becoming new commercial hubs, with reports of major IT companies relocating to these areas. The increasing demand for commercial spaces reflects the city’s expanding economic potential. Looking ahead, Pune’s land development is expected to continue at a rapid pace. The city’s administration is actively working towards developing sustainable and eco-friendly infrastructure and transportation systems while promoting smart city initiatives. Efforts to enhance the quality of life for residents are also underway. Some of the upcoming projects in Pune include the Pune Ring Road, the Pune International Airport, and the Pune-Bangalore Industrial Corridor. Furthermore, the city anticipates the development of new residential and commercial projects, as well as expansions of existing ones. Notably, there have been discussions regarding the potential presence of renowned MNCs such as Google and Microsoft in Pune, further solidifying its position as a prominent city in India and a global economic powerhouse. Now, addressing the specific questions: The method for consummating land deals in Pune can vary based on the transaction and market conditions. It may involve fixed price sales per square foot or saleable FSI (floor space index) models where developers pay for the right to build a specific floor space on the land. Developers’ margins can be influenced by various factors, including competition, market demand, and the costs of construction materials and labor. The flooding of FSI due to the effect of UDCPR (Urban Development Control and Promotion Regulations) could potentially impact the residential market by increasing the supply of available units. This could lead to increased affordability for homebuyers if developers pass on the savings from higher FSI to consumers. The impact on commercial leasing would depend on the specific market and demand for commercial space in the respective area. The preference for buy versus joint ventures in Pune depends on individual investors or developers’ goals and risk tolerance. The buy strategy offers more control over the development process but carries higher risk. On the other hand, joint ventures can provide access to capital and expertise from multiple parties but require compromise in decision-making. Purchasing ready commercial assets, forward purchases, and core assets in Pune can all be viable strategies depending on the investor’s goals and risk tolerance. Each strategy has its own benefits and drawbacks, and the decision should be based on thorough analysis of market conditions and the specific asset in question. Long-term rental yields in Pune will depend on market conditions, supply and demand dynamics, rental rates, and inflation. Making an accurate prediction without analyzing current market data would be challenging. The future of Pune’s real estate market hinges on various factors, including economic growth, population trends, and infrastructure development. Preferred micro markets for office and residential property development will depend on the specific demand and supply dynamics in those areas, which are subject to evolution over time. Pune City is having now global importance. Pune is blessed with multiple growth engines like climate, ample soft water, fields of Education, automobile,  I.T, medical. Service Sector, electronic, agro. This givens boost to ample/ huge employment generation leading to growth of real estate sector. The decision on where to buy land next for development in Pune depends on factors such as market conditions, competition, and investor goals. Analyzing these.

Jayant Inamdar’s Story Of Success Post-COVID Pune property market has better scenario Jayant Inamdar is a structural engineer, precising the same for the last 40 years. He is one of the few highly successful structural engineering consultants in India, with multiple pan-India projects. His clientele includes BASF, Volkswagen, Hafeez Contractor, and other organizations, including the Mumbai Metropolitan Region Development Authority (MMRDA), for its iconic office space at Bandra Kurla Complex (BKC). Having come from an economically weak background in a village near Pune, Inamdar has proved that it doesn’t matter what your background is; if your aim is high, you can achieve wonderful things in life. His entry into the real estate sector was a fine blend of choice and chance. He had no money back in the late 1970s, to start a construction business. The consultancy work in structural engineering was at a nascent stage – only a handful of structural engineers practised the profession those days in the entire country. One of his professors at the College of Engineering Pune was practical enough to advise him about professional practice in structural engineering as a career choice. Inamdar worked for six years as a full-time structural engineer in companies like Tata Consulting Projects, Hadkar Prabhu & Associates in Mumbai and Er. CE Godse in Pune. He began his practice in 1983. There was no looking back since then. No wonder, he calls himself a doctor of bones of the building! His key to success is hard work and continuous learning. He opines that if you do your best work consistently for the initial four-five years, you may or may not get any money, but eventually success will come behind you. Even at the age of 70, he’s working from 7.30 in the morning to 11.30 at night every day! Even though his office is well-staffed, he’s committed to his official work and various social impact activities, which keep him busy. He thinks that nobody can say they know everything. “Even today, I keep learning new things from my field. A day without learning is a day wasted.” Inamdar believed that the iconic office building of MMRDA in Mumbai was the turning point in his career. The challenge was to design something unique with office space of just 100 x 70 meter’s without columns. Success is never a one-night story. He believes failure is the first step to any success. He recalls one of the projects where he was blamed for the underground water tank failure having the capacity to hold 28 Crore liters of water. Although, later, it was proved that it wasn’t the mistake of a structural engineer but of the execution team. Since then, he’s developed a practice to study almost every minute detail to avoid any probable failures and advise the same to clients. The most important change brought by MahaRERA, as per Inamdar, is that “every builder is conscious of what to commit to the buyers. Post-COVID, the Pune property market has a better scenario with better booking rates and a positive atmosphere. If you’re considering property as an investment, think about its market price five years down the line and if you’re looking for your use, consider the points like location advantage, security of everyone around the space and basic amenities like water, electricity, road and ventilation.” Having said that, he also thinks that the most important thing in real estate from the buyers’ point of view is the legality of the land and the historic performance of the builder or developer. Quality, Safety and Timely completion – these three things will be the major change according to Inamdar in the future of real estate. He is delighted and grateful for his career journey and has no regrets. He always advises his developer clients to reduce the wastage of materials because, in addition to the cost to the developers, it is a waste of national resources. “If Mera Bharat Mahan and Aatmanirbharta have to work hand-in-hand, we shouldn’t tolerate any wastage beyond the least possible,” says Inamdar. His advice to young entrepreneurs is, “Work hard. Don’t look at the monetary results for the initial four to five years. Keep yourself updated about the latest concept in your field, not only within India but worldwide.”  

Buying Real Estate – How to become a King! There is a lot of material about Real Estate floating around the internet. We hear of people like Warren Buffet, who made his billions through investing in real estate. We come to find that King Charles III, for example, is so very rich because he is the largest owner of real estate in the world. All very interesting. But, what does that really mean to the average person who is neither Warren Buffet, nor King Charles? In my book, Real Rich, there are some amazing insights for you to discover. In this book, I reveal to you that in today’s world, each one of us CAN become a King! The book takes us on a very interesting journey through our shared human past. Public memory is notoriously short. And it would not be surprising if we thought that we, as ordinary citizens, have always had the right to simply get up, apply for a loan, and buy a piece of real estate. Nothing could be farther from the truth. As I enumerate in the book, the right to own real estate is a very recent development in history. Did you know for instance, that up until 1925, the common man was forbidden from buying land? I’ve taken this point of view for this book as it is a lens through which real estate is rarely seen and is in stark contrast to the other conversations in the industry. Real estate, when seen from the viewpoint of human evolution, is the single greatest tool of empowerment that has been made available to the average human being. As I say in the book: “That freedom we take for granted, the freedom to go out, scout around the city, look through websites, compare notes, dilly-dally, waste time before we make a decision, and then go and buy a home… that freedom is a NEW one! We would never have had it. Right up until very recently.” Do we see what a huge evolutionary advantage we now have? With great luck we are born in this day and age when no one can tell us that we cannot own real estate. We have access to credit. We have a whole industry that is working day and night to provide us with safe, well-designed, sustainable, viable options of homes and other real estate that we can choose from. And what do we do with this enormous, historical privilege? We let it slip out of our hands. We waste time, dithering about making a decision. We take advice from people with no expertise. … Your time is now. Go, Become KING! What are you waiting for? There is no time left to waste!                                                                                                                 Dr. ATUL GOEL                                                                                                             MD – Goel Ganga Group                                                                                                             Author – REAL RICH