PUNE: The real estate sector in the city has been adversely affected due to the slowdown in the economy. The Pune Municipal Corporation’s (PMC) building permission and development department sanctioned the lowest number of new proposals in the decade in 2019-20. It okayed 562 new proposals from April to December 2019.
According to the numbers with the PMC, the civic body had okayed 1,718 new proposals in 2011-12, which was the highest. The period from April to December-2019 saw only 562 permissions, which is the lowest so far. According to officials, over 100 new proposals will be filed in the coming three months (January to March-2020).
The Pune civic body sanctions redevelopment, new construction projects within the city limits. Now, the city limits have extended due to the merger of 11 new villages.
Commenting on the issue, builders listed reasons for the dismal show including limited open land within the city; high building permission charges; delay in sanctioning projects and the inclination of consumers towards affordable housing, which is possible outside city limits and increasing infrastructure on city fringes.
City Engineer Prashant Waghmare said, “The civic body received fewer proposals for new constructions from April to December-2019 due to the slowdown in the market. We hope proposals will increase in the coming three months. We are providing good infrastructure and services to people. Therefore, our building charges are high as compared to other cities. Moreover, developers have moved outside the city limits due to the merger of more villages in PMC as they are anticipating the civic body will develop infrastructure in these villages.”
He further said, “There is limited open space within the city limits. The newly merged villages will help boost construction activities in the coming year.”
Though Pune Smart City is implementing various development projects, including the metro railway project in the city, the outlook for the real estate business is dull. A senior official of PMC said there is no demand for houses as rates are high. Hence, builders are not investing in real estate right now. After the metro railway project starts, they will take a call on investment in the projects. The metro railway will boost real estate as the government has announced additional Floor Space Index (FSI) near the metro stations. Hence, they have adopted a ‘wait and watch’ policy.