Polls and Property – Seizing the Election Opportunity in Real Estate

POLLS

Akash Pharande, Managing Director – Pharande Spaces

As India gears up for its upcoming general elections, optimism and anticipation are evident across various sectors, and the real estate market is no exception. Historically, India’s general elections have been a time for positivity – after all, every political party in the fray pledges to boost economic growth and improve infrastructure. These commitments invariably lead to a positive sentiment in the housing market.

How will the upcoming elections impact India’s housing market, and why this be the perfect time to make a home purchase? Let’s examine.

Surging Investment Optimism

Election periods in India are typically marked by increased public spending and promises of economic reforms, which tend to boost consumer confidence and spending. A stable government and the implementation of favourable policies create an environment ripe for investment – especially in the real estate sector. To capitalize on this optimism, developers often launch new projects or offer attractive deals and discounts to homebuyers.

Policy Reforms and Infrastructure Development

Today, election manifestos emphasize infrastructure development and pledges to usher in structural reforms. The result of such measures is enhanced connectivity and improved urban infrastructure, which directly benefit the housing market by making homeownership more accessible and appealing.

The development of roads, public transport, and utilities boosts the value of residential areas, turning even peripheral areas into attractive investment options. In short, they will see price growth.

Improved Liquidity and Financing Options

In the run-up to elections, there is typically an increased focus on financial inclusivity and easing of credit conditions to stimulate economic growth. Banks and financial institutions often roll out special home loan offers, reduced interest rates, or more favourable terms to encourage home buying.

This increased liquidity and the availability of financing options make it easier for aspiring homeowners to take the plunge.

Favourable Regulatory Changes

The government’s focus on housing and real estate development often leads to regulatory changes aimed at protecting buyers’ interests and boosting the sector’s growth. For example, the Real Estate (Regulation and Development) Act in 2016 was delivered by a new government elected in 2014, and it bought considerable transparency and accountability to the real estate sector.

Such policy reforms create a better environment for homebuyers and encourage investment in real estate. When such confidence-boosting reforms are implemented, we invariably see a rise in housing prices. Likewise, post-elections economic growth results in increased demand, which results in price growth.

However, in the period leading up to the elections, developers may often look to draw buyers with attractive prices, offers and discounts. This period can present a unique window of opportunity for investors and homebuyers to negotiate better deals before the anticipated post-election boom.

In short…

The period between now and the general elections is a strategic window for of opportunity to buy a home before prices rise. Moreover, the potential for property value appreciation post-elections signals significant returns on housing investment in the future.

Buying a home now, amidst the anticipatory positive trends, can not only secure a valuable asset but also leverage the market’s upward trajectory post-elections. Historically, the real estate market’s positive response to the general elections represents a strong connection between political milestones and economic growth.

2024’s Top Choice for Home Buyers – Why Pune is Winning Hearts

2024's Top Choice for Home Buyers - Why Pune is Winning HeartsBy  – Akash Pharande, Managing Director – Pharande Spaces

As the veil lifts on 2024, property end-users and investors in and around Pune are firming up their New Year’s resolution to achieve home ownership this year. It’s certainly the perfect time for it. According to real estate consultants Anarock, Pune and MMR were the top-selling housing markets in 2023.

In Pune, approximately 86,680 homes were sold in 2023, states Anarock, second only to the Mumbai Metropolitan Region’s impressive sales of 153,870 units. Pune‘s high ranking in housing sales is not surprising. The city offers a lot more than just more attractive price points compared to Mumbai. But the price factor certainly matters.

Pune’s Price Advantage

In Pune, you can find a 1BHK apartment ranging from Rs. 35 to 45 lakhs, depending on the area. In contrast, a similar 600-700 square foot apartment in Mumbai would cost around Rs. 80 lakhs to 1 crore. Property prices in Mumbai are typically 30-40% higher than in other Indian cities.

To put it in percentage terms, real estate in Mumbai is, broadly speaking, 75.21% more expensive than in Pune. This makes Pune a far more accessible market for a broader range of buyers and investors. However, there is no doubt that the affordability factor is gradually decreasing because Pune has seen steady price appreciation.

According to a recent report, 2023 saw the average housing price in Pune rise by 11% increase, reaching Rs 5,208 per square foot. This rise was attributed to improved demand in the housing market. Predictions suggest this trend will continue in 2024, making Pune a magnet for investors seeking long-term value growth.

But apart from prices, Pune wins over Mumbai in several other ways.

dream achieved.

Why Pune Succeeds Consistently

Pune continues to deliver the perfect balance of lifestyle and investment value compared to Mumbai. The city offers superior space with more spacious residential options – a distant dream in most MMR areas except the farthest suburbs. Pune is ideal for families and individuals wanting a better quality of life through larger living spaces.

Pune‘s strategic location and improving transport infrastructure also make it highly attractive. The city’s proximity to Mumbai is a defining advantage. At the same time, Pune‘s education, healthcare, and entertainment facilities contribute to a higher standard of living. Additionally, Pune‘s IT parks, commercial hubs, and strong services industry continue to transform the landscape, attracting job seekers and investors.

While buyers and investors have many options in Pune, some areas stand out for important reasons. One getting considerable attention is Punawale.

Punawale – Standout Housing Hotspot

Punawale, within the Pimpri-Chinchwad Municipal Corporation (PCMC) in Pune, has seen remarkable growth, emerging as a preferred housing destination. Like Pune, Punawale has seen substantial price appreciation due to its strategic location, infrastructure development, and surging demand for quality housing.

Unlike other locations, Punawale caters to diverse segments, from affordable housing to luxury projects.

The area has well-planned roads, efficient public transport, and easy access to schools, hospitals, and shopping. This infrastructure makes Punawale more appealing than many Pune areas.

The PCMC Edge

Overall, PCMC outperforms Pune Metropolitan Region in several aspects. PCMC implemented a rational master plan focused on sustainable, balanced development. This urban planning foresight resulted in better-managed residential and commercial spaces, efficient utilities, and less congestion, making areas like Punawale more livable.

PCMC emphasizes green, open spaces. The area has parks and gardens, contributing to a healthier, more aesthetically pleasing environment. These green spaces provide much-needed recreation and relaxation, a rarity in many urban areas.

Punawale maximizes these advantages. It is home to West Pune‘s most outstanding integrated township, which has been a game-changer for its real estate market by enhancing the overall real estate value proposition and setting new residential space standards for the region.

The transformative power of outstanding developments is well-established, and India has several examples of this phenomenon. The entire socio-economic structure of the area changes for the better.

Superior Connectivity

A standout feature of Punawale is its connectivity. Well-linked to key Pune areas and other cities via roads and highways, proximity to the Mumbai-Pune Expressway and major arterials enhances the appeal for commuters and those wanting easy access.

Quality of Life

Infrastructure, connectivity, green spaces, and a high-grade township have significantly uplifted Punawale’s quality of life. Residents enjoy a balanced lifestyle with modern amenities, nature, and community focus.

Punawale’s transformation into a real estate hotspot resulted from strategic planning, infrastructure development, and visionary projects. Growth is based on urban convenience, connectivity, and green space – the future of sustainable urban living.

The Future Beckons

Ongoing and planned infrastructure projects, coupled with demand for quality housing, strongly support Punawale’s future growth. Improved road connectivity and public transport have played a pivotal role in boosting values. Easy access to major employment hubs like Hinjewadi IT Park and MIDC industrial belt has made Punawale a hotbed for home seekers valuing easy commutes without compromising quality of life.

For end-users and investors, Punawale brings everything together. With consistent growth in values and enhancements in quality of life and connectivity, Punawale is a standout real estate destination in 2024.

Bricks and Mortar vs. Paper Gains – Why Owning a Home Wins

Akash

By – Akash Pharande, Managing Director – Pharande Spaces

In the wake of the Indian stock market’s record-breaking highs, many investors find themselves in a quandary. Should they continue investing in stocks, chase the ever-fluctuating gold market, or explore a different path altogether? While both assets have the potential for reward, there’s one asset class that consistently outperforms them in both value appreciation and overall satisfaction: residential real estate.

Real Estate: A Consistent and Reliable Performer

Consider these compelling statistics:

The national average residential property price increased by over 8% year-on-year in the first half of 2023, according to leading property consultancies.

Average rental yields across major Indian cities ranged between 2.5% and 4.5% in 2023, providing a steady stream of passive income.

Property prices in key metropolitan areas like Mumbai, Bangalore, and Delhi have grown by an average of 15% annually over the past five years.

These figures paint a clear picture: residential real estate offers consistent appreciation, making it a reliable long-term investment.

Beyond Financial Returns: The Unquantifiable Value of Owning a Home

The true value of real estate extends far beyond financial benefits. Owning a home provides a fundamental human need: a secure and comfortable haven. This alone carries immense value, offering stability, peace of mind, and a sense of belonging that no stock or gold investment can replicate.

Home investment 2

Land: A Scarce Resource with Increasing Value

Unlike stocks, which can be readily replicated and traded, land is a finite resource. As India’s population continues its rapid growth, the demand for housing shows no signs of abating. This translates to an ever-increasing scarcity of land, particularly in desirable locations. By investing in real estate, you’re not just buying a home; you’re securing a piece of land that will only become more valuable with time.

The Psychological and Social Benefits of Homeownership

Owning a home goes beyond dollars and cents. It fosters a sense of belonging, community, and pride. It provides a space for families to grow and thrive, creating memories that will last a lifetime. Studies have shown a positive correlation between homeownership and mental well-being, overall life satisfaction, and even stronger family bonds.

A Treasured Legacy for Generations to Come

Real estate offers a tangible, long-term investment that can be passed down to future generations. By investing in a home, you’re not just building wealth for yourself, but for your family’s future as well. This creates a generational legacy that ensures long-term financial security and stability for loved ones.

Financial Stability Through Rental Income

Owning a second home or renting out a portion of your property can be a reliable source of passive income. This additional income stream can contribute to financial stability, retirement planning, and achieving other financial goals, ultimately giving you greater control over your financial future.

Tax Benefits and Portfolio Diversification

Investing in residential real estate offers various tax benefits, including deductions on home loan interest and capital gains tax exemptions under certain conditions. This further enhances the financial attractiveness of owning a home. Additionally, real estate provides diversification benefits for your portfolio, protecting you from the volatility of the stock and gold markets, thereby creating a more balanced and resilient investment strategy.

Home

A Home is More Than an Investment

While stocks and gold may offer the allure of short-term gains, they also come with the risk of sharp dips and worrisome highs. In contrast, real estate remains a cornerstone for long-term wealth creation and overall well-being. With its consistent appreciation, increasing land value, social and psychological benefits, and long-term value proposition, a home offers much more than just financial returns.

It is the only investment that delivers multiple and sustained returns and should definitely feature large in a diversified investment portfolio. And – it’s a place to call your own, a sanctuary for your family, and a legacy to be cherished for generations to come. As the Indian economy continues its growth trajectory and urbanization progresses, investing in real estate remains a wise and rewarding decision for those seeking a secure and fulfilling future.