Will Metro Rail bring property prices down in Pune?

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Will Metro Rail bring property prices down in Pune?

Pune

If you are looking to buy an under-construction property in Kalyani Nagar, Pimpri, Chichwad, Vanaz or Swargate, you may not get many options in the near future as the number of new projects is likely to come down and the current projects may be delayed. Why? Real estate developers in Pune are waiting for the new Floor Space Index (FSI) norms under the new Pune Municipal Corporation (PMC) Development Plan, which is under the pipeline.

The provisions for additional FSI may brings property prices a bit down as developers will be able to construct more on the land available to them.

Why Pimpri, Chinchwad, Vanaz and Swargate? These are the areas proposed to be covered under the first phase of Metro Rail. “The areas in localities which fall around the Metro Rail line are likely to get more FSI,” says Abhijit Pardeshi of Samriddhi Estates.

This expectation is backed by reason and logic. Cities such as Noida and Gurgaon, which have the Metro Rail up and running, already have provisions for extra FSI around the localities around the line.

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For that matter, the phase I of the Metro Project would cover Ramwadi, Kalyani Nagar, Yerwada, Bund Garden, Ruby Hall, Pune Station, Poolgate, Mangalwar, Peth, Civil Court, Deccan Gymkhana, Nal Stop, Ideal Colony, Anand Nagar and Vanaz.

In its recent report to the Maharashtra government, the Delhi Metro Rail Corporation (DMRC) stated that an additional FSI of 4 shall be provided for about 10.4 hectare of land around the proposed Metro Rail Stations in Pune. The draft Development Plan of the PMC also looks for additional FSI around every metro station.

However, the proposal is under consideration as the fractions of the government believe that it would result in population overload in select areas and will thus increase pressure on infrastructure and other civic amenities.

According to a report from Jones Lang LaSalle, the State government has instructed the PMC to draw up a plan for extending the Pune Metro link to Rajiv Gandhi Infotech Park (RGIP) at Hinjewadi.

Vikram Jethwani, Magicbricks.com Bureau

Vikram is an integrated communications professional with diverse experience in journalism, research and analysis. His focus areas include real estate, infrastructure and urban management.

http://maharashtratimes.indiatimes.com/lifestyle/property/home-at-pune/articleshow/26597868.cms

पुण्यात घरांचे अनेक पर्याय-प्रॉपर्टी-लाइफस्टाइल-Maharashtra Times

गेल्या काही वर्षांत पुण्याचा विस्तार मोठ्या प्रमाणात झाला असून, वाघोली, तळेगाव, कामशेत, खेड-शिवापूर, किरकटवाडी, उरळीकांचन, पिरंगुट आदी ठिकाणी नवे प्रोजेक्ट सुरू आहेत. या ठिकाणी घरांचे भाव तुलनेने कमी आहेत. त्यामुळे बजेट हाउसिंगसाठी या ठिकाणचा विचार करता येऊ शकतो.

दसरा-दिवाळी होऊन गेली असली, तरी नव्या वर्षाचे स्वागत करण्यासाठी सर्वजण सज्ज होत आहे. पुढील वर्षी नवे काय करायचे, अशा चर्चा सुरू होऊ लागल्या आहेत. काही जणे नवा संकल्प करतात, तर काही जण खेदीच्या माध्यमातून आनंद लुटतात. ही खरेदी मग, एखादे गॅजेट्, कारची असू शकते किंवा घराची. गेल्या दोन वर्षांत स्थावर मालमत्ता क्षेत्रात परिस्थिती बदलली आहे. पूर्वी स्थावर मालमत्ता ही केवळ निवाऱ्याची गरज भागविणारी गोष्ट म्हणून त्याकडे पाहिले जात होते. अजूनही अनेकजण पहिले घर घेण्यासाठी आपल्या आयुष्याची कमाई घालवितात.

पूर्वी घरासाठी कर्ज घेणे ही अवघड बाब होती. आता नसली, तरी अनेक कागदपत्रे, त्यासाठी आकारले जाणारे शुल्क यामुळे घर खरेदी करणाऱ्या व्यक्तीचा जीव मेटाकुटीला येतो. मात्र, कर्ज मिळल्यामुळे स्वप्नातील महल प्रत्यक्षात साकार होणार असल्याने तो हे सर्व सहन करतो. ग्राहकांना आकर्षित करण्यासाठी बिल्डरांनी अनेक गृहप्रकल्प योजना सादर केल्या आहेत. रास्त दरातील घरे, मिड हाउसिंग, अल्ट्रा प्रीमियम, प्रीमियम, लक्झरी प्रोजेक्ट, एनए प्लॉट, फार्म हाउस प्लॉट आदी योजनांचा समावेश आहे.

नवे उद्योग येत असल्याने पुण्याच्या कक्षा रूंदावत आहेत; तसेच मुंबई-बेगळुरू औद्योगिक क्षेत्रामुळे सातारा, शिरवळ, खेड-शिवापूर, नसरापूर आदी ठिकाणी विकास होण्यास सुरुवात झाली आहे. सिंहगड रस्त्यावरील काही भाग पालिका हद्दीतील नाही; तसेच आंबेगावचा काहीच भाव पालिकेत आहे. त्यामुळे पालिका हद्दीत घरांचे भाव काहीसे चढे आहेत. आज ना उद्या हे भाग पालिका हद्दीत येण्याची शक्यता आहे. त्यामुळे भविष्यातील विचार करता या ठिकाणी सुरू असलेल्या आणि लाँच होत असलेल्या रेसिडेंशिअल प्रोजेक्टमध्ये फ्लॅट बुक करण्याच्या संधीचा विचार करायला हरकत नाही. विस्तार असलेल्या पुण्याचा विचार केल्यास दक्षिण बाजूस आंबेगाव, नऱ्हे, धायरी, किरकटवाडी आदी ठिकाणी मोठ्या प्रमाणात बांधकाम सुरू आहे. ही ठिकाणे रस्त्यांनी सर्व ठिकाणी जोडलेली आहे. शाळा, कॉलेज, मॉल, मल्टिप्लेक्स, हॉस्पिटल आदी सुविधा या भागात गेल्या दहा वर्षांत उभ्या राहिल्या आहे. घर खरेदीसाठी एखाद्या भागाची निवड करताना तेथील दर, सुविधा याच गोष्टी प्रामुख्याने विचारात घेण्यासारख्या असतात. या ठिकाणचे दरही अन्य भागाच्या तुलेनत रास्त आहेत. ३५ -३८ लाख रुपयांपर्यंत या ठिकाणी एक बीएचके, ४५-७० लाख रुपयांदरम्यान (काही अपवाद) टू बीएचके उपलब्ध आहे. रो-हाउस, बंगला घेण्याचे स्वप्न या भागाचा विचार केल्यास पूर्ण होऊ शकते. अनेक बिल्डरकडून या ठिकाणी रो-हाउस, बंगल्याच्या स्कीमही बांधल्या जात आहेत. साधे घर ते आधुनिक अॅमेनिटीज असणारा प्रोजेक्ट, एक बिल्डिंगची सोसायटी ते मोठा प्रोजेक्ट, तर टाउनशिप या ठिकाणी आहेत. त्यामुळे प्रत्येक व्यक्ती आपल्या क्षमतेनुसार घराचा प्रकार आणि कोणत्या प्रोजेक्ट प्रकारात घर घ्यायचे याचा निर्णय घेऊ शकते.

कोथरूडचे अॅनेक्स म्हणून उदयास येत असलेल्या उत्तमनगरचे कोथरूड असेच मार्केटिंग सुरू आहे. कोथरूड बजेट बाहेर असणाऱ्यांना या अॅनेक्स कोथरूडचा विचार करून कोथरूड भागात घर घेण्याचे स्वप्न साकार करता येऊ शकते.

हिंजवडीच्या दिशने विचार केल्यास बाणेर, बालेवाडी, औंध, बावधन, सूस या ठिकाणी प्रोजेक्ट सुरू आहेत. आयटी हब या ठिकाणजवळ असल्याने या ठिकाणी घर घेण्यास प्रीमिअम मोजण्याची तयारी असणाऱ्यांनी या भागाचा विचार करावा. कोंढवा, उंड्री हा पुण्याच्या पूर्वेकडील भागही गेल्या दहा वर्षांपासून वाढण्यास सुरूवात झाली आहे. सिंहगड रोडच्या तुलनेक विकास कमी असला, तरी लो-बजेट असणाऱ्यांसाठी हा भाग एक चांगला पर्याय ठरू शकतो. या भागात काही ठिकाणी हायएंड, तर काही ठिकाणी मिड हाउसिंग प्रकारातील प्रोजेक्ट सुरू आहेत.

सिंहगड रोडपेक्षा दर थोडे कमी आहेत. त्यामुळे थोडीशी अडचण सहन करण्याची तयारी असल्यास मोठ्या घराचे म्हणजे टू बीएचकेचे स्वप्न पूर्ण होऊ शकते.

नगर रस्त्यावर वाघोलीपर्यंत बांधकाम सुरू आहेत. काही भागात हायएंड प्रोजेक्ट सुरू आहेत; तसेच मिड हाउसिंग आणि रास्त दरातील घरांचे प्रोजेक्टही या भागात सुरू आहेत. त्यामुळे प्रत्येकाला बजेटनुसार उपलब्ध आहेत.

रिअल इस्टेटमध्ये गुंतवणुकीचा विचार करीत असलेल्यांसाठी पिरंगुट, तळेगाव दाभाडे, कामशेत, चाकण, भोसरी, रहाटणी आदी भागांचा विचार करायला हरकत नाही. विशेषतः तळेगाव आणि कामशेत ही ठिकाणे रस्ते आणि लोहमार्ग यांनी जोडलेली आहेत. या ठिकाणी राहणारी अनेक मंडळी कामानिमित्त लोकलद्वारे पुण्यात ये-जा करतात. या ठिकामी दरही सध्या तुलनेने कमी आहेत. त्यामुळे आयुष्यातील स्वतःचे पहिले घर घेण्याचे स्वप्न कमी बजेट असणाऱ्यांचे पूर्ण होऊ शकते. तळेगावमध्ये मोठ्या प्रमाण इंडस्ट्रीअल डेव्हलपमेंट सुरू आहे. त्यामुळे या ठिकणचा विकास होत आहे. भविष्याचा विचार करता सध्या घेऊन ठेवलेल्या घरावर चांगले रिटर्न मिळू शकतात. त्यामुळे रिअल इस्टेटमधील गुंतवणुकीचे हे एक डेस्टिनेश म्हणायला हरकत नाही. चाकण या ठिकाणीही इंडस्ट्रीअल डेव्हलपमेंट सुरू आहे. त्यामुळे या ठिकाणीही घर घेऊन रिअल इस्टेटमधील गुंतवणुकीचे स्वप्न साकार होऊ शकते. प्रत्येकाल आपल्या बजेटनुसार राहण्यासाठी किंवा गुंतवणूक करण्यासाठी घराचे पर्याय उपलब्ध आहेत.

Morgan Stanley (NYSE:MS) Real Estate Investment may put money in India

http://thepointdaily.com/morgan-stanley-nysems-real-estate-investment-may-put-money-in-india/126372/

 Morgan Stanley (NYSE:MS) Real Estate Investment may put money in India
Posted on February 12th

Morgan Stanley (NYSE:MS) Real Estate Investing, is thinking on the lines of investing in a project aimed at building 1.6 million square feet of office space in Bandra Kurla Complex, which is a locality in Mumbai, two unidentified sources familiar with the situation briefed.

The Mumbai based company, Wadhwa Group, initiated work on the project. The project is going to build two towers that will be devoted to offices and it is expected to be completed by the end of 2014.

The deal is believed to be in the early stages right now. It will be the first investment by MSREI in an office development project in India, according to an anonymous source. Previously, the company put $850 million in Indian real estate that mostly included housing projects. The amount of $100 million to $125 million was diverted to Mumbai-based Sheth Developers. This information is obtained from a report from Reuters, which was publicized during December 2011.

Currently, MSREI and the Wadhwa Group are not willing to offer any comment on the topic, while in the light of information gathered by research firm Venture Intelligence, a majority of private investors are not willing to put their money in the Real Estate industry of India. The investment level in the industry remained at $1.95 billion in 2012, declining from 2007’s $9.8 billion.

In the last trading session, Morgan Stanley (NYSE:MS) stock traded at the beginning with a price of $23.21 and throughout the trading session climbed to a high of $23.47 and later, when day-trade ended, the stock finally slipped -0.17% to $23.28.

MS current year earnings per share experienced a decline of -103.32%, while its current quarter performance remained +41.26%. MS has 1.98 billion outstanding shares, among them 1.55 billion shares have been floated in the market exchange. MS stock institutional ownership remained 60.23% while insider ownership was 0.20%.

The stock is ahead of its 52week low +91.59% and is lagging behind its 52 week high price -1.94%. The Company’s beta coefficient was 1.60. Beta factor measures the amount of market risk associated with market trade.

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Real estate sector seeks lower finance costs, faster clearances

http://m.timesofindia.com/city/pune/Real-estate-sector-seeks-lower-finance-costs-faster-clearances/articleshow/18425646.cms

Real estate sector seeks lower finance costs, faster clearances - The Times of India on Mobile

PUNE: The country's real estate players are hoping that the finance minister's budget provisions, to be announced on February 28, will bring down the costs of finance for the construction sector, which they insist will play a major role in offering lower rates for their product.

Also on the real estate developers' wishlist is a sustained structure of governance for the sector and introduction of methods to reduce the time taken to obtain the permissions and clearances for a project. A delay in the completion of a project, mainly due to delayed clearances, always leads to cost escalation and higher prices for consumers, they argue.

Lalit Kumar Jain, national president of the Confederation of Real Estate Developers' Associations of India (Credai), said the finance minister should allow tax exemption for inputs used in construction of small houses, of under 60 sq m carpet area. Special housing zones on the lines of Special Economic Zones could also be created, with tax exemptions for constructing 45 sq m houses for low income groups and 30 sq m houses for the economically weaker sections, Jain said.

He said, "Widespread tax incentives can be leveraged to make the real estate sector the new growth engine of the economy...It is high time that the government took a pragmatic and practical look at the real estate sector and took steps that help the industry in particular and the economy in general." Interest rates for housing loans should be cut to 7.5%, he added.

Credai suggested that a Real Estate Investment Trust be formed and called for special rental housing projects under the affordable segment, treating the expenditure as capital investment for long-term capital gains, exemption from income tax, service tax, value added tax and stamp duty for rental housing. Even the rental income from these projects must be exempt from income tax as there are substantial indirect benefits, the apex body has said.

Anuj Puri, chairman and country head for real estate advisory company Jones Lang LaSalle India, said considering that the budget is expected to be a populist one ahead of the 2014 polls, addressing the compromised GDP and skyrocketing inflation must be given the highest priority.

Puri said the budget needs to increase infrastructure spending in urban areas with a view to unlock the value of neglected and hidden land assets in suburban and peripheral districts. This will enable a more holistic growth for the real estate markets in our over-burdened metros and allow the demand for housing to spread over a larger canvas. The increased demand in peripheral locations where infrastructure has made the real estate markets more viable will also help bring down prices in the central areas, he said.

"The country's real estate industry contributes approximately 5% to the GDP. Moreover, the real estate sector has grown significantly over the past decade, with tangible transformation in quality and business standards. However, due to lack of regulations and effective policies, the sector is experiencing many challenges. The budget must consider the fact that the Indian real estate sector generates countless jobs across its various verticals. By granting it industry status, the government would enable the sector to access debt-lending at better interest rates and reduced collateral values," Puri said.

The government should come up with simple and effective polices that will ease real estate development approval procedures. Obtaining the 57-odd permissions to begin construction of a project can take up to two years. During this time, the cost of acquisition or even just holding the land for projects goes up. Lack of single-window clearance mechanisms causes project delays, which prove to be expensive to both developers and end users, Puri added.

The firm's managing director (Pune) Sanjay Bajaj said the budget should provide the real estate sector with elaborate provisions for external commercial borrowings for low-cost housing, tangible tax relief for individuals and greater investment in infrastructure. "An amplification of concessions for low-cost housing loans would have a significant bearing on the Pune real estate market. Unlike Mumbai, budget housing is still a very real concept in this city. Incentivising the development and purchase of affordable housing can make a big difference here," Bajaj said.

Urban planners say CM's nod will benefit Pune

PUNE: Activists and urban planners in the city have said chief minister Prithviraj Chavan's approval of the reservation of biodiversity parks (BDP), would help to preserve the city's environment.

On Saturday, Chavan approved the reservation as recommended by the Jain committee in 12 of the 23 merged villages in the Pune Municipal Corporation (http://timesofindia.indiatimes.com/topic/Pune-Municipal-Corporation)

(PMC). Former mayor and

Rajya Sabha (http://timesofindia.indiatimes.com/topic/Rajya-Sabha) member Vandana Chavan said decision was a "gift to the future generation". She said BDPs would help the city while dealing with long-term environmental issues. "Global issues such as climate change and pollution are showing their impact on environment. It has become more important for us to conserve natural resources in such conditions," she said.

"The approval for the BDP reservation has given me immense joy," urban planner Anita Benninger-Gokhale (http://timesofindia.indiatimes.com/topic/Anita-Benninger-Gokhale) , said. "It was a long wait, but finally a good decision has been made. It is a relief for the citizens of Pune," she said.

Benninger-Gokhale said citizens will now have to fight to save the water bodies and other natural resources in and around the city. Satish Khot (http://timesofindia.indiatimes.com/topic/Satish-Khot)of the Pune National Society for Clean Cities termed the decision a victory of the people. "We citizens have managed to save our hills by winning this drawn out battle," he said.

"The citizens convinced the authorities that the green cover our hills provide is crucial for the survival of Pune as we know it," he said. The PMC had proposed the reservation as part of the development plan (DP) which was sent to the state government for its approval. The 978.54 hectare reservation is spread over seven hills in the 12 villages. This includes 124.45 hectare of government land and 853.09 hectare of privately owned land.

The government had appointed a committee headed by KB Jain dean of the faculty of doctoral studies, Centre for Environmental Planning and Technology, Ahmedabad, to study the proposal.

The main recommendations of the committee were to make the BDP reservations permanent by giving the land owners transfer of development rights (TDR) in lieu of their land. Those who hand over their land in the first year would be given additional TDR. Around 74 hectare land with old constructions would be excluded from the reservation, the press release issued by the state government said.

Budget 2014 wishlist: What India's real estate industry wants

http://mdaily.bhaskar.com/article/top-stories/4444/t/320/MON-budget-2014-wishlist-what-indias-real-estate-industry-wants-4163781-NOR.html

Budget 2014 wishlist: What India's real estate industry wants

By Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India Current Status The GDP for the current financial year is not likely to cross the 5.7-5.9% mark - the predicted 8% in GDP growth is highly unrealistic. We expect the budget to come up with some immediate and effective announcements to remedy the situation. In recent quarters, the Government and the RBI have been unable to curb the inflation to a more comfortable level of between 5-6%. Considering that the upcoming budget is expected to a populist one, given the Union election ahead in 2014, addressing the compromised GDP and skyrocketing inflation must be given highest priority. (Also read: Delhi real estate: NH8, NH24 shine; DLF, Vesta launch new projects) The macro-economic concerns are having a cascading effect on Indian real estate. Here are the considerations that the sector needs from the upcoming budget as well as in terms of overall enablement: Reduce High Cost Of Borrowing: Presently, interest rates charged by the banks to developers and home buyers are at an all-time peak and need to be brought down. A reduction in the base rate (rate below which no banks can lend to the corporates or industries) is necessary to help banks lower their lending rates. (Also read: Pre-budget hopes: 'Raise savings limit under 80C to Rs 3 lakh') The Government should address these concerns in the budget, and this should be followed through by RBI in terms of easing the repo rates and relaxing other policy instruments such as the CRR, SLR, etc. to inject liquidity into the system. This is essential if the Indian economy's key sectors such as manufacturing and real estate are to grow. The regulatory and monetary authorities need to bring down the housing loan rates to provide affordable housing to more cities and towns. The scope of the interest rate subsidy for loans towards affordable housing should be amplified and broadened to include a wider price band of budget housing to benefit home buyers, especially in lower income groups. Make Provisions For Special Residential Zones: The Government could seriously consider enacting provisions for Special Residential Zones (SRZs) to incentivise the growth of housing stock at targeted locations. Increase Infrastructure Allocations: The budget needs to increase infrastructure spending in urban areas with a view to unlocking the value of neglected and hidden land assets in suburban and peripheral districts. This will enable more holistic growth for the real estate markets in our over-burdened metros and allow the demand for housing to spread over a larger canvas. The increased demand in peripheral locations in which infrastructure has made the real estate markets there more viable will also help bring down prices in the central areas. Provide Real Estate With Industry Status: The country’s real estate industry contributes approximately 5% to the GDP. Moreover, the real estate sector has grown significantly over the past decade, with tangible transformation in quality and business standards. However, due to lack of regulations and effective policies, the sector is experiencing many challenges on its growth path. The budget must consider the fact that the Indian real estate sector generates countless jobs across its various verticals. By granting it industry status, the Government would enable the sector to access debt lending at better interest rates and reduced collateral values.

Take Steps To Provide Better Clarity In Land Titles: This is another policy hurdle which needs to be tackled by the Government. Across the country, land needs the benefit of legally documented ownership assigned to the right persons or entities. The lack of clarity on land titles shakes the confidence of investors, and is a serious hindrance to overall growth. The budget should make specific allocations towards regularizing and digitalizing land records. Provide More Adequate Sources Of Finance: Since the sector is not under the umbrella of any specific regulatory authority, financing has been an issue over a number of years of credit slowdown. What is required at the current time is the liberalization of finance for the real estate sector. The budget should enable a broader scope for external commercial borrowings for real estate and provide a general relaxation of financing norms. Take Steps To Moderate Rising Input Costs: The input prices for construction have skyrocketed in recent years, rising by more than 50% in the last two years alone. In addition, builders are faced with the increased costs of external and internal development charges, licenses and charges for change of land use from various departments. These factors have been directly responsible for rising real estate prices. The budget should make provisions for subsidized construction materials for low-to-mid-income housing, and rationalized license fees and other government levies. Unblock The Approvals Pipeline: In this budget, the Government should come up with simple and effective polices that will ease real estate development approval procedures. Obtaining the 57-odd permissions to begin construction of a project can take as much as two years. During this time, the cost of acquisition or even just holding the land for projects rises. Single-window clearances are the need of the hour, since the absence of such mechanisms causes project delays which prove to be expensive to both developers and end users.

Take Steps To Improve Investor Interest: REITs should be implemented so that small investors will get a chance to invest in real estate assets. The enactment of legislation on REITs to provide exit opportunities to real estate investors would be a real step in the right direction. Enact the Real Estate Regulatory Bill: The Government should once and for all finalize and implement the proposed Real Estate Regulatory bill, which is needed to bring rationality back to the sector. This draft bill, which is pending since 2009, aims to create a regulatory authority for the realty sector, ensure sale of immovable properties in an efficient and transparent manner, and to protect consumer interest. One key proposal of this bill is to set up a regulatory authority in each state. The sector looks forward to intentions in this regard finally translating into action. Implement GST: The Government avowed plans to introduce GST sooner rather than later need to be implemented. This will go a long way in streamlining the economy and providing stimulus to GDP growth. (Image: Gangtok at night, Sikkim; Source: Getty Images) Arun Gupta

'Pimpri-Chinchwad an attraction for hotel business'

http://m.economictimes.com/news/emerging-businesses/regional-hubs/west/pimpri-chinchwad-an-attraction-for-hotel-business/articleshow/18196331.cms

'Pimpri-Chinchwad an attraction for hotel business'
26 Jan, 2013, 1547 hrs IST, Vasumita S Adarsh, ET Bureau

With a long experience in the hospitality sector, Surinder Singh is now the president of Poona Hoteliers Association, and the general manager of Vivanta by Taj Blue Diamond in Pune.

With a long experience in the hospitality sector, Surinder Singh is now the president of Poona Hoteliers Association, and the general manager of Vivanta by Taj Blue Diamond in Pune. In an interview with ET, he talks about how the Pimpri-Chinchwad region is evolving as a hospitality business destination. Edited excerpts:

How was 2012 for the hospitality in Pune, and how does 2013 look like?

2012 was not entirely good for the sector in Pune. While some hotels managed to maintain the growth rate of 2010-11, some witnessed negative fallout of the economic slowdown. No extra inventories happened either.

This year, however, seems to be more buoyant, and Pune is expected grow faster than the country's GDP in hospitality. When the country's GDP was 9 to 10 per cent, Pune region's hospitality sector was growing at 16 to 18 per cent. Now that the GDP is at 5 to 7 per cent, the hospitality sector is expected to grow at 9 to 11 per cent.

From having just three major luxury hotels during the last 10 years, today the hotel segment in both luxury class as well as business class has increased five times or more. From 500 rooms altogether, we now have 2,500 rooms available in the luxury segment alone. There is an excess supply of rooms in the five star and business class segment hotels in the region today. And, in the next three years, this demand-supply scenario may stabilise.

How are tier II regions like Pimpri-Chinchwad coming up? Do you see more hotels coming up here?

The Pimpri-Chinchwad and Chakan region have been a major industrial belt with several foreign companies. A good number of clients work there and stay in hotels in Pune. This will in turn impact city hotels, as clients, who are there in Pune for a longer period of time, may prefer living in Chakan rather than endure the long travel. The city hotels will lose at least 40 to 50 rooms due to this.

On the flip side however, the Pimpri-Chinchwad region lacks any major entertainment centres for a client to unwind. Hence, clients coming in for just a few days may prefer to stay in main Pune. The areas such as Koregaon Park, Nagar Road, etc are the hot spots of the city. The Pimpri-Chinchwad region is yet to develop in terms of having more malls and other quality recreation, for senior employees and expatriates.

What factors will help hospitality sector in Pimpri-Chinchwad to grow?

Pune's western region and regions of Pimpri-Chinchwad, Chakan, Talegaon will see more hotels in the future, though this may happen in a span of the next four to five years.

The Pimpri-Chinchwad area is attracting many investments in the hospitality sector. Besides the Marriott project, there are many investors looking to launch projects in the region, though none have been announced officially yet. The residential area in the region is growing too - another reason for the region to attract investors. Increase in residential projects means an increasing work force settling here. The Eastern part of Pune has seen an oversupply of hotels, with many properties located close to each other.

Foreigners coming to Pune for short and long term work visits are among the leading clients for hotels. How do you see this trend evolving? Owing to expansion of existing companies, as well as new IT and engineering companies setting base in the region, there has been no decrease in the number of foreigners coming to Pune. International travellers are certainly a vital part of the hospitality service, besides domestic clientele.

Earlier the city had altogether three luxury hotels, which meant the hotels dictated the terms. Now with competition increasing and more choices available with a client, hotels have to be clued in to provide the best service at competitive rates.

The government too has to re-look its liquor policy, with the new work cultures emerging in the region. Not everyone works traditional timings anymore, and many clients are working US and UK hours to be in touch with their companies. But government allows liquor only till midnight.

This means we cannot serve liquor to such clients, who may be having a different sleep pattern, and may want to relax post 2 am or 3 am. Earlier such professionals were few, but with the IT culture booming, today the number of such professionals have gone up. The government needs to change its policies accordingly, so that domestic and international clients view Pune favourably.

What are the challenges hospitality sector has to face in the region?

Infrastructure upgradation is among the biggest issues. The current airport is not adequate to serve international travellers, who lose almost an entire day, alighting at Mumbai, and then travelling all the way to Pune. The proposed international airport is still in the planning stage. Similarly, projects that would elevate Pune's status such as the International Convention Centre in Moshi have not taken off either.

The other hurdle is the huge amount of taxes imposed, whether it is on serving imported liquor, taxes on in-house entertainment, or even playing recorded or live music in the hotels. The laws have to become more hotel-friendly. Clients, who come to the city are shocked when the city closes down post midnight, just as they are planning to unwind. Nightclubs and pubs are not necessarily suited to everyone. Providing this service becomes an expensive affair for hotels, because of the huge taxes.

As the city culture evolves, these policies should be revisited and amended. What is required is that the government and the industry in Maharashtra too sit down and discuss these current impediments. This has not yet happened from either side.
vasumita.adarsh@timesgroup.com Arun Gupta