Why Pune's developers focus on big projects

I have often been asked why certain developers concentrate primarily on large township projects. After all, doesn't it make more business sense for builders to launch smaller projects?

Why don't developers of large-format residential property schemes cash in on the demand for more ordinary flats in Pune? Here are some of the arguments I hear:

The developer's construction costs for smaller residential property developments are much lower

They require less land, can be constructed in central areas where demand is high

They can benefit from whatever infrastructure already exists in the locality, so there's no need to put in much more

They can be constructed much faster and also sell much faster to a ready clientele who are looking for flats for sale in Pune

There was demand for smaller residential projects even during higher slowdown, for sure — but they represent the small picture

True, township projects can only be made if the developer has considerable land parcels at his disposal. Even if they do, such land parcels are only available in areas like Pimpri-Chinchwad Municipal Corporation, which is not near the city centre.

True, he must supply all the infrastructure and public utilities in such a residential project. True, there is a 'wastage' of developable area because such large residential developments, by necessity, call for huge open spaces. True, townships take a much longer time to complete than smaller, stand-alone projects

However, this is a limited viewpoint. It does not factor in the most pressing requirements on the Pune residential property market. The fact is that a multitude of smaller projects disfigure the face of a location, put its infrastructure under tremendous pressure and are usually overpriced because of 'location value'. One look at the current property rates in Pune will confirm this — what you pay for in location, you lose in comfort and convenience. In sharp contrast, well-planned township schemes beautify, uplift and give value to a new location. Not only do they bring in their own infrastructure - despite being on the outskirts, they also provide residents with all the benefits and comforts of a more centralized location. The vast open areas provided in such residential projects are not wasted space — they are what spacious, dignified living is all about.

There is more. Because integrated residential projects have their own retail outlets, office complexes and entertainment facilities, they reduce commuting and transportation time and expense. In fact, they inject life into a new location and raise its value on the real estate market. What smaller residential project in a city like Pune can offer so much to its residents within a single location? Township developers focus on such residential developments because they positively transform the landscape and uphold all precepts of sustainable development.

The new generation of large township projects in Pimpri Chinchwad Municipal Corporation have made modern, fully-equipped and self-sufficient residential projects affordable to the middle class. No longer are such properties available only to moneyed HNIs and NRIs. Thanks to this, even salaried individuals can buy homes in projects that offer well-defined living spaces, recreation facilities, office complexes, convenient retail establishments and a superior standard of living. These projects offer ultimate value for money.

Which leads back to the original point. In a city like Pune, townships make more sense than smaller projects because they are the most modern and sustainable model of urban growth — and to a better way of living. To own a home in one of them is an assurance of a lifestyle that cannot be replicated elsewhere in a crowded city.

Developing such a project is more than a business proposition — it is an opportunity to contribute to the future of the city's real estate market. Is that not reason enough?

Source: articles.economictimes.indiatimes.com