Aundh, Pune is a very fine place to live in. The area is equipped with all the necessary things for a good lifestyle. The place is well connected by public transport. The DP road that connects to Medipoint Hospital boasts of some wonderful societies like Harsha Paradise, Garden Estate, Elite Gardens, Westend Riverview, Kumar Padmlaya, Kumar Prerana and others. All facilities like groceries, vegetable vendors, hospital, restaurants, furniture shops, consumer durable / electronics shoppe, auto rickshaw stand, bus-stop are at a stone’s throw.
In one of these projects, there is a beautiful 2 bhk measuring 1058 sqft is available for sale at a nominal price. One may contact naresh.hampiholi@gmail.com or +918087700194 to see the apartment, to know the price and buy the same.
Tuesday, April 13, 2010
Affordable houses
The meaning of the term “affordable” is abstract.
What could be affordable to Mr Bhatia may not be affordable for me. Today, for the purpose of discussion by saying affordable house we mean houses that sell and that too fast. Well, its a game of demand & supply.
We have all seen that the demand for 1BHK 1½ BHK, 2BHK flats is evergreen. Persons or clients looking for 1, 1½, 2 BHK flats are usually the first time buyers. These people have a strong desire to own a house but face a budget constraint many times. In the higher value products the people are looking for value for money. They are looking for places which will give them more space, more amenities, better surroundings which will match their social status. These are the ones who would require justifiable rates and are very choosy. The percentage of such clientele is very small.
Now what is affordability? Irrespective of the cost or for any cost, if the person can organize his share of the cost and be eligible for the loan as filler for the reminder cost, it is affordability.
The real estate prices – let’s take a quick recap from 2006. The prices of real estate kept on going up every day. The rise was not very justifiable. The buyers felt this. As businessmen sellers enjoyed the price hike and the demand also lured the sellers to hike up the prices. By the end of 2008 the prices of real estate in pune, on an average, went up by about 200%. At certain locations the hike is more than 300% and at some it is just 100%. It was a sellers market and we all were happy about this growth. In reality, we cannot relate this to the growth in real estate to the overall economic growth of the state or country. The prices were not logical and were as per the whims and fancies of the builder. At some time there had to be a stop to all this.
We stepped into 2009 with a downward trend. The builders, developers put on their thinking caps to identify ways clearing their real estate inventory. Affordable homes became the talk of the day.
According to me an affordable house is ultimately the house which is in a good location, has the optimum amenities, offers good quality construction and is priced justifiably. Selling price is - current cost of land + cost of construction + 20% profit.
In Today’s market we see that 1 bhks costing between 12 – 17 lakhs, 2 bhks costingbetween 15 – 22 lakhs are selling fast. I can name 3 projects which made the best of this kind of product mix. They are Nano Homes, Sollanna, Aishwaryam greens. These projects have attracted genuine home seekers, first time buyers and long term inverstors. More importantly the builders have an assured inflow of cash. Projects with a good product mix will be a boon to the buyer, seller and the society.
