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“I will forever believe that buying a home is a great investment. Why? Because you can’t live in a stock certificate. You can’t live in a mutual fund.’
— Oprah Winfrey
The comparison of home as investment with stocks (read as other sources of investment) may sound absurd yet looking from common man’s perspective for which the author of the quote is famous for, you will realize why real estate has always been in demand all across the world, may it be USA or a town in rural parts of India or even in our dear Pune! No need to make an introduction to Oprah Winfrey, a lady who by sheer razor-sharp brain with the charismatic screen presence has won hearts of millions, going beyond gender, colour, or nationality types borders! And when the topic is real estate in our developed State (self-proclaimed, some may say) then I thought of describing the importance of the end product which is a Home for real estate in the most simple way which Oprah has done! Ok, my writing inspiration friend Narendra Joshi asked me to write something about growth or future of real estate not just in & around Pune but in our State at large & many will say what’s big deal, builders always make money so real estate has bright future & I don’t cross argue this logic but! Had it been so then of-late there wouldn’t have been need of RERA (MahaRera in our State) tightening noose of its laws & rules around real estate as well EOW / ED (please don’t ask long forms even a school kid now knows them) has not got their hands full with names which are mostly connected to land deals or real estate!
With due respect, nature of real estate is such that no great brain is needed to become a businessman here but some brain is definitely needed once you become a real estater (builder) & earned some money, this is where the growth, development, prospect, future etc terms comes in the picture, is what I feel! I think its because of the nature of the business as I have always mentioned, this is the only business where the raw material doesn’t come to you unlike in any business but you have to go to the raw material & make a product out of it where it is! I am sure you are confused, so here is a simple analogy, right from making a car or washing powder (no, I am not refereeing to any political party) you can buy raw material from open market & get it to your factory & make final product with it & you can buy it from any place, like steel for auto industry you can buy from Jalana in Maharashtra to W.Bengal & if its washing powder then you can buy Costic soda which is raw material from Gujrat or from Goa & same is possible with any product. But in real estate industry, main raw material for homes is land & that you can’t transfer or move but you have to build the homes which is your finished product where your raw material is & this is what makes real estate a tricky business! As you can’t increase production of this raw material i.e. land but you can increase its production value or say potential to make finished product but that also up to certain limits. So, if your car factory is in Pune & demand of the care is more in Punjab, then you can send your cars to Punjab from Pune but if homes’ demand is more in Punjab, can you send homes there from Pune along with the land, answer is, no, right? This is why when you think of future of real estate you must have to take in account the situation around your raw material i.e. again the land as then only you can decide fate of the real state business at particular place or city.
That way the population is increasing of our country faster than any other country & if this population of 150 crores is a curse on many fronts but for real estate its a boon, in some way if not fully! Because all these people will need roof on their home for living or working & the raw material for the same is limited for that purpose & this has always kept real estate in demand but! The but is, for understanding the demand as unless there are people, there is no future for the real estate & the people must be in capacity to buy that roof on their head in legal way & for that the policies as well infrastructure around those roofs should be in accordance with the demand then & then only the real estate flourishes or else we have ample land in deserts of Rajasthan or deltas of Odissa but we don’t have demand for homes there, is a fact! Speaking about our Maharashtra State, that way even the lands in villages also have appreciated as I come from a small town named Khamgaon in Vidarbha & even in my town the shops rate fronting on the main bazar road of the town can match the shops on Karve Road, trust me it’s true! The only difference is volume of such demand, its only for some road & some shops there is client & same is true for the homes also, about offices here, lesser I speak better! In the nutshell, whatever growth or demand is there for real estate in any place is directly proportional to the opportunities of career at that place or say city as then only a person will think of buying a home at that place & settle with his or her family!
And with this criterion unfortunately most of the real estate which is flourishing in the State can be divided in five zones or regions, one is Mumbai City, another is Mumbai’s surrounding i.e. New Mumbai or on western side Vasai-Virar, third is the Thane-Nashik-Pune triangle & fourth is in pockets around other bigger cities of State such as Sambhajinagar, Kolhapur, Nagpur & fifth is, local centre’s growth which happens in & around every District place of the State! Though these centres are witnessing growth for real estate but reasons are different & so is the speed of growth or say chances of increase in investment or developments in every such centre, respectively. As take example of Mumbai City, with population of over 1.5 crores, the need for the exiting people itself becomes the biggest demand for real estate & space is limited due to the geographic situations of Mumbai & then its India’s finance / trade centre, so money (read as career) is here for the masses, which is major driving force for real estate in Mumbai. But not all can afford the price one has to pay for having a home or office in this Dream City & that’s why Mumbai is now mainly for the Super Rich or Super Poor only, no offense, I am only sharing what I come across in my experience! Then the real growth is around Mumbai, where land is still available though for jobs one has to be a parasite on main Mumbai yet for real estate it’s a good thing. Here the role of connectivity to Mumbai as well as the creation of basic infrastructure for the homes is going to make a difference. I will come to Pune region last but let’s have a look at other major cities of the State as being a Nagpurian by myself, I know the fact that every alternate home’s some member has shifted to Pune-Mumbai for career from here & those which has been left behind whatever their extended neds about space or life style are, that’s what keeping the real estate in the city floating! Yet those figures are also big & then around the local rural areas people are shifting to centres like Nagpur the way people from Nagpur are shifting to Pune side. Though the scene in Sambhajinagar & Kolhapur is shade better because of industrialization around yet a lot is needed to match with Pune region, especially on social as well cultural front as that’s also one big reason when a man decides to settle in some place. The story with district centre cities is really tricky as the well settled families here wants to send their next generation to bigger cities with or without their will & there are less takers here yet whatever little demand is for the homes it is restricted to very few locations making the civic body’s work difficult on revenue front thus directly impacting the infra front of these cities & this the govt must take in consideration or else the migration won’t ever stop from these centres towards Pune region!
Lastly, coming to our Thane-Nashik-Pune region & especially around Pune, everything which is needed for the growth of real estate is available here but the main question is, for how much time the region can sustain the load of migrants without getting any right support from the govt for the same! As we keep reading news about how Chennai & Bengaluru are suffering on water & traffic fronts & many families are shifting from these cities, do mind that nobody comes in this world with the tag of immortality & even a city is also not an exception to this law! Only difference is, a city gets dead by no other reason but by its own burden that is, citizens; as if there is no water, no space to drive, no space to throw garbage, no oxygen to breath & even if the city offers you job & a lavish home, what’s use of such life, right? And on this front govt seems to be clueless (read as careless) as all it is interested is in increasing the output capacity of the raw material here by adding TDR & Paid FSI & TOD but what about giving the other supports which are also necessary to convert the raw material in to a finish product, about which nobody is speaking a word! Its like you have asked to make a car & you have made a nice car with stylish upholstery with best of safety features & designer looks but forgot just one thing i.e. the engine of the car! Situation of Pune region is somewhat similar which must be thought of by the real estate & that is possible when you are riding on wave of growth which is now! This city & region around it has everything essential for potential of growth for real estate but has a big responsibility also, to provide the same, rather better infrastructure which will stand with this growth or else like in our body the white blood cells are good as they fight any infection but too much increase of white cell leads to cancer, don’t forget this basics Punekars, adios with this note!
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Sanjay Deshpande
Sanjeevani Dev.
Please view my sharing about finding a Right Home/ Office in Pune, at YouTube link below & share if liked...
https://youtu.be/27j3I3rwGPQ?
Please do visit my blog links below to read about real estate & home buying!
https://visonoflife.blogspot.
http://jivnachadrushtikon.
Creating Togetherness; team Sanjeevani Way (Click link below)
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www.punecorporation.org
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