Buying affordable homes in Pune gets costly

Buying an affordable house in Pune doesn't seem to be a possibility anytime soon as the Ready Reckoner rates in the city have increased at an average of six per cent. The implementation has begun from April 1.

Ready Reckoner new rate applies from 1 January. However, this year state government decided to declare it on the first day of the new fiscal year. Revenue Minister Eknath Khadse announced on Thursday, according to a new rate of Assembly Ready Reckoner.

Shantilal Kataria, President of CREDAI Pune Metro said, "It is surprising to note that the government has once again increased the ready Reckoner rates ranging from 5 to 15% and particularly the average rates in Pune area above 10%, as annual ritual keeping in view only objective of raising the revenue of the Government. It is also understood from the feedback received from the home buyers, advocates and other stakeholders that the revision in many places is between 15 to 20 per cent."

He also said, "When the present government was in opposition, they always supported the demand of the home buyers of not increasing the ASR rates every year but when they came in to power they forgot their own promise. Even the present government has not bothered to fall in line with the steps taken by their own Union Government of extending various benefits to create more stock of affordable housing for all by 2022."

The CREDAI-Pune Metro had made suggestions on behalf of the home buyers and cautioned the authorities that any increase in ASR will lead to increase in the cost of construction making homes costlier beyond the reach of the common man.

D S Kulkarni, of D S Kulkarni Developers Ltd said, "Middle class will feel the heat of increased ready reckoner rates and not the builders. Such revisions do not dig any holes on builder's pocket. The home buyers have to pay for stamp duty or other expenses while purchasing a flat. Hence, the rates which keep on increasing year after year will burn buyer's pocket. The most affected would be middle class segment who wish to buy homes under affordable housing."

Akash Pharande, Director sales & marketing, Pharande spaces in Pimpri Chinchwad area said, "As the ready reckoner have increased it's going to change the dynamics of the market hence the affordable housing would also have impact! Buying houses would be expensive for common people therefore the sector would have dip but it's more of wait and watch situation for buyers."

Speaking to aspirant house buyers, Sagar Jadhav (32) a techie who came from Kolhapur two years back and had planned to settle in Pune said, "We wanted to see Acche Din but there is no Acche Din any more. Two years on this government is making fool to us there is no difference between the past government and this government. Prime Minister Narendra Modi in his first speech had spoken about Right to house to every citizen and had vision that by 2020 all people must house but now how can we afford the house."

Naveen Sharma (35), a software techie from Uttar Pradesh and working in Pune based multinational company said, "Due to IT sector in Pune the house rent is increased as initially I had to pay rent of Rs 6000 per month which was to jump to Rs 15,000 per month. I had planned to book house this Gudi Padwa but in vain. The houses have increased in Pimpri-Chinchwad area by 6.78 per cent. Now house in Pune will be a dream which will be unfulfilled."

N Ramaswami, state Inspector General of Registration (IGR) and Controller of Stamps said on Friday, "The rate in Pune city has been increased by six per cent and Pimpri Chinchwad Municipal Corporation (PCMC) area the rate has been increased by 6.67 per cent. In the periphery area of Pune rural area the rate has been increased to 9.37 per cent."

"As per the Ready Reckoner rates, Koregaon Park in Pune has been rated as minimum for Rs 13,369 per square feet while Erandwane area Rs 12, 487. In Pimpri-Chinchwad area the highest is Pimple Saudagar area by 7, 799 and Chinchwad Rs 7,163 per square feet area. Properties those were registered at Sub-registrar office has gone down. As in 2013 around 1,22,459 property documents were notified. In 2014 the number went to 1,21,699 and in 2015 the number 1,21,272."