Infrastructure Challenges Impact Affordable Housing in Pune

Pune: The dwindling supply of low-cost homes, coupled with accessibility issues to offices and essential facilities, is dampening demand for affordable housing in the city, industry players and residents said on Tuesday.

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.