Infrastructure Challenges Impact Affordable Housing in Pune
The demand for affordable housing in Pune is being hampered by a lack of essential infrastructure, such as power, water, and roads, according to industry experts and residents.
Affordable HousingPuneReal EstateInfrastructureMarket TrendsReal Estate PuneOct 11, 2025
The affordable housing projects are typically located on the outskirts of the city, including areas like Wagholi, Phursungi, Katraj, Dhanori, Lohegaon, and even as far as Urali Kanchan. These areas frequently face power outages, lack of water supply, and poor road conditions.
Nitin Deshpande, chairman of the Marathi Bandhkam Vyavsayik Association, highlighted these issues and suggested that the government should consider revising the definition of affordable housing. He also recommended providing concessions to developers on income tax and stamp duty to encourage more affordable housing projects.
Affordable apartments are defined as those priced up to Rs 45 lakh or 968 sqft. However, typical flats in the city are usually smaller, ranging from 400-450 sqft, which suits nuclear families but not larger ones, according to residents. A recent survey by property consultant Anarock showed that most homebuyers were dissatisfied with the location of projects, flat sizes, and construction quality. According to the firm, the most affordable budget homes in the area start at around Rs 55 lakh.
A major issue in the affordable housing projects is the maintenance of buildings. Shalaka Kale, a resident of Wagholi, noted that occupants often do not keep up with maintenance payments, leading to dilapidated buildings. This impacts the resale value of the flats, making it difficult to find buyers.
Consultancy firm Knight Frank India reported that the cost of land in urban areas is quite high. For affordable housing to be viable, the location must be cost-effective. However, acquiring such land in central areas is economically unfeasible due to steep prices. As a result, developers are compelled to seek land on the peripheries of cities, where it is more affordable but typically disconnected from urban infrastructure.
Sarang Kumbhar, a resident of Katraj, spends close to two to three hours commuting between his workplace and home daily. He suggested that it would be better to shift to a central area in the city and emphasized the need for the Metro network to expand to peripheral areas to allow the middle class to travel to the city center more efficiently.
The market dynamics for different segments of the housing market in Pune are also noteworthy. According to the Gera Pune Residential Realty Report, the budget segment (less than Rs 5,453 per sqft) has seen a significant share of the market, but the premium and luxury segments have also shown growth in recent years. The data from the report indicates the fluctuating trends in the real estate market, reflecting the challenges and opportunities in the affordable housing sector.
Frequently Asked Questions
What are the main issues affecting affordable housing in Pune?
The main issues include power outages, lack of water supply, poor road conditions, and the high cost of land in urban areas. These factors make it difficult for developers to create and maintain affordable housing projects.
Where are affordable housing projects typically located in Pune?
Affordable housing projects are typically located on the outskirts of the city, including areas like Wagholi, Phursungi, Katraj, Dhanori, Lohegaon, and even as far as Urali Kanchan.
What are the recommendations for improving the affordable housing sector in Pune?
Industry experts recommend revising the definition of affordable housing, providing tax and stamp duty concessions to developers, and expanding the Metro network to peripheral areas to improve connectivity.
What is the typical price range for affordable apartments in Pune?
Affordable apartments are defined as those priced up to Rs 45 lakh or 968 sqft. However, the most affordable budget homes in the area start at around Rs 55 lakh.
How does the high cost of land in urban areas affect affordable housing projects?
The high cost of land in urban areas makes it economically unfeasible for developers to acquire such land for affordable housing projects. As a result, developers are forced to seek land on the peripheries of cities, where it is more affordable but typically disconnected from urban infrastructure.
Related News Articles
Mahindra Lifespaces Unveils Phase 4 of Pune's Premium Residential Project
Mahindra Lifespaces launches the final phase of its residential project Mahindra Happinest Tathawade in Pune
Tier 2 Cities: The Emerging Hotspots for Real Estate Investment in India
Discover why Tier 2 cities are becoming the next big investment hubs for real estate in India, driven by rapid urbanization, growing disposable incomes, and infrastructure development.
K-RERA Mandates BDA to Pay Rs 12.5 Lakhs for Construction Delay
In a significant ruling, the Karnataka Real Estate Regulatory Authority (K-RERA) has ordered the Bangalore Development Authority (BDA) to pay Rs 12.5 lakhs to a homebuyer for the delay in the project site development.
Omaxe's Share Price Plummets: A 52-Week Low Amid Rising Losses
Omaxe's stock hit a new 52-week low on Friday, opening at Rs 74.75 per share and dipping further during the trading session. This decline comes amid increasing financial losses for the real estate firm.
Tragic Electrocution Occurs While Setting Up Traps in Mulugu
A man was tragically electrocuted while setting up traps to hunt wildlife in the Mulugu district of Telangana. The incident highlights the dangers of tampering with electrical systems and the need for safety measures.
Navigating the Job Market: Challenges and Strategies Amid Economic Uncertainty
The current economic climate has left many industries grappling with job uncertainty and falling incomes. From ancillary services to real estate and consumer goods, the impact is widespread. This article explores the challenges and potential strategies to navigate these tough times.