Subhankar Mitra, AVP - Strategic Consulting, Jones Lang LaSalle
The immediate impacts of satellite town formation - and the primary
advantages - would be an at least partial decongestion of the central city and
a rise in property valuations in the satellite town. The appreciation rate would
depend on what kind of infrastructure has been/is being put in place in the
satellite town, and what other market drivers it features.
Since appreciation is of paramount interest from an investment point of view,
this aspect deserves amplification.
Property prices are a function of demand and supply. Demand is created by a
suitable combination of market drivers such as employment potential,
infrastructure and overall quality of living. If a satellite town offers these in
sufficient magnitude, and if there is sufficient connectivity to the main city by
means of road and rail, this new area can often put a slight downward
pressure on property prices in the more centralized regions while showing a
steady upward trend on its own property price graph. This, however, happens
only under optimum conditions, which must be created by meticulous town
planning and proactive local Government support.
Of course, living in a satellite town is not everyone’s cup of tea. There would
be a perceived disadvantage for those use their home in the satellite town to
travel to their workplace in the central city, especially if the necessary degree
of road/train linkage has not been created. Also, buying a home in a satellite
town can lead to a sense of isolation and general dissatisfaction if the location
does not feature the kind of social life and entertainment that would be seen
as necessary lifestyle quotients.
Some central city dwellers would choose to move to such satellite towns in
response to the available relief from city-related stress and cheaper property
rates. However, the majority of metropolitan inhabitants would choose not to
relinquish their foothold in the main city. Many satellite towns coming up today
are of greater interest to migrant populations rather than core city inhabitants,
and local developers tend to zero in on this population while planning their
A classic example of best-scenario satellite town planning would be the
Pimpri-Chinchwad Municipal Corporation (PCMC) of Pune, which is an
industrial hub in its own right. Within the PCMC area, Pradhikaran has
emerged as the location of choice for mid-to-high level management staff
working in the various surrounding industries, and various local development
concerns such as Pharande Spaces have recognized and focused on this
potential. Areas such as Navi Mumbai and Pune's PCMC are planned
developments that have their own social infrastructure as well as distinct
resident profiles social character.
If satellite townships have been meticulously masterminded by the relevant
town planning authorities, they will incorporate their own economic drivers
such as employment opportunities, social infrastructure and lifestyle quotients.
Simply put, such a combination of factors opens up a new growth area for the
real estate market. Under suitable circumstances, office, retail and residential
property will work in tandem to create a symbiotic growth pattern.
Moreover, once such a satellite town is established, it tends to attract various
industries specific to the available workforce, further boosting this pattern. The
overall effect is one of economic diversification of a possibly congested metro
into new directions. This naturally spells nothing but good news for the
region’s real estate market.
Thursday, August 13, 2009
Subhankar Mitra, AVP - Strategic Consulting, Jones Lang LaSalle
Tuesday, August 11, 2009
Thursday, August 6, 2009
Mumbai, August 05, 2009
This three days exhibition was inaugurated by Shri. Arun Kumar Agarwal, General Manager & Business Head (PB) - I, State Bank of India & Shri. Shubhash Runwal, Chairman, Runwal Group, at Ghatkopar and Smt. Shubha Raul, Mayor, Mumbai at Kandivali.
Considering the rising demand of affordable housing MCHI conducted property exhibition at two locations simultaneously. The exhibition was focused on properties in the range of Rs.10-50 lakh & Lifestyle Homes above 50 Lakh as well.
“We have seen an encouraging response from the home buyers as our exhibition was held when the large numbers of buyers were looking out for an affordable housing at various locations in the western and central suburbs of the Mumbai. The response also had confirmed that the trend is in favour of affordable housing as well as quality lifestyle homes”, said Mr. Pravin Doshi, President MCHI.
“It was a co-incidence that the central government announced a special incentive one percentage point interest subsidy together with the tax benefit that makes home loans really cheap. It had created a positive impact on the exhibition with potential buyers rushing towards the expo to grab the opportunity of the affordable homes showcased in the exhibitions.” said Mr. Harish Patel, Convener, Exhibitions MCHI.
“We are extremely happy with the success of the Budget Exhibitions, the concept MCHI unveiled last year to cater the changing need of the housing and also aided in reviving the market sentiments in general. The Budget Exhibitions also have mutually benefited the buyers and developers very well”, said Mr. Deepak Goradia, Co-convenor Exhibitions, MCHI.
As many as twenty one leading developers and builders from India including Ackruti City Ltd, Lodha Group, Mayfair Housing Pvt. Ltd., Rustomjee, Arihant Universal, Disha Direct Marketing Services Pvt Ltd., Dosti Group, Neelkanth Mansions Ltd, Everest India Limited, Nirmal Lifestyles, Neptune Group, Runwal Group, Mittal Builders, Royal Palms India Pvt. Ltd. , Godrej Properties Ltd., had showcased their properties at the exhibitions. Properties from Andheri to Virar and beyond were displayed in the western suburbs exhibition at Kandivali while properties from Ghatkopar/Chembur to Mulund, Thane, Kalyan, Navi Mumbai, Panvel and beyond were displayed in the central suburbs exhibition at Ghatkopar in the 2nd Budget Expo 2009. Among the HFIs were State Bank of
Maharashtra Chamber of Housing Industry (MCHI), formed in 1982 is the most prominent body of real estate builders and developers in the country. MCHI brings together members dealing in real estate development on one common platform to address issues facing the industry. Members of MCHI account for 80 of new residential accommodation in Mumbai and its vicinity. MCHI helps both the Central and State governments in meeting their objectives of providing housing, which is a basic necessity. MCHI works towards raising awareness among the general public, real estate and construction industry while providing them with detailed information on projects and new developments in and around Mumbai. With over 400 well-recognized and reputed member builders and developers, MCHI is affiliated with leading industry associations like FICCI, IMC and CREDAI.