Pune Real Estate Prices - WHY ARE PROPERTY RATES SO HIGH IN WAKAD PUNE

Academic and Creative Writing Journal Vikram Karve: WHY ARE PROPERTY RATES SO HIGH IN WAKAD PUNE

WHY ARE PROPERTY RATES SO HIGH IN WAKAD PUNE

MUSINGS OF A NOVICE SELF-STYLED PROPERTY GURU Part 1

By

VIKRAM KARVE

I live in a place called Wakad in Pune. Luckily, my house is in the better part of Wakad, serene relatively green unpolluted South Wakad, and not in the grimy congested noisy polluted concrete jungle of North Wakad.

I’ve lived here for quite sometime now (almost two years) but nothing has changed for the better. Even now (as was two years ago), there is Zero Quality of Life in Wakad since there has been no improvement in the amenities and infrastructure.

In Wakad, the roads are perpetually dug up and there are no footpaths to walk on and nowhere to go for healthy walk, except the verdant Mhatoba Temple Park on the banks of the Mula River where you can stroll on the expansive grassy green lawns and enjoy the fresh unpolluted air and noise-free atmosphere.

Public Transport is pathetic and you must have your own vehicle (and you must know how to drive) if you want to live in Wakad.

Even for your basic needs and requirements you have to go towards Aundh or Baner in Pune, be it food, shopping, banking, school, doctor or dentist – you name it and it is not there in Wakad.

If you want to go to the Post Office the nearest one is in the Rajiv Gandhi InfoTechPark at Hinjewadi almost 5 kilometres away.

And if you want to see a movie, you better forget about it, for the nearest Multiplex called E-Square is more than 10 Kilometres away.

So the best way to live in Wakad is to stay inside your home and develop hobbies like reading books, watching TV, hearing music or indulging in meditation and cultivate what is known as a “retiring nature”.

That is why I wonder as to why property rates are so high in Wakad, despite the woeful lack of amenities and zero quality of life. When I ask someone they say it is all because of these overpaid young IT Nerds (“Techies”) working at the InfoTech Park at Hinjewadi, who at a very young age have plenty of disposable income, and most of these Techie Couples are desperate to buy houses . It seems that the priorities of these IT Nerds, Geeks and Dorks are all mixed up – you won’t believe it, but I recently met a newly married Techie DINK Couple who were more worried about buying their own house rather than having their own baby.

(Yes, Investment in Property takes Priority over Investment in Family)

Is this the reason why property rates are high?

One thing is sure. In the case of other products prices primarily depend on input costs, production costs and brand value (due to guarantee of quality). Real Estate Prices depend purely on Supply and Demand. That is why whereas the same specification product (Car, TV, Washing Machine etc) will cost roughly the same all over India, the cost of a same specification house will be wildly variable depending on the location. Real Estate Prices are sometimes 10 times more (or even 20 times more) in some cities compared to other cities and property rates vary a great deal even at different locations within the same city.

Therefore, in order to get a proper estimate of the property price at a particular place you must have a “quantitative” measure of the Supply versus Demand Equation. A few days ago, I learnt that there is indeed such a measure and it is called INVENTORY OVERHANG.

What exactly is Inventory Overhang? Is there a relation between real estate prices and inventory overhang? I’ll discuss this with you about it in my next post.

Meanwhile, I’ll walk around Wakad and try to estimate the Inventory Overhang out here and try to explore how this may impact property rates in Wakad Pune.

Till then, happy house-hunting and have a good day.

And, by the way, if you know why property prices are so high (or low) in your city, do comment and tell us…

To be Continued in Part 2…

VIKRAM KARVE

Copyright © Vikram Karve 2012
Vikram Karve has asserted his right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this work.
© vikram karve., all rights reserved.

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About Vikram Karve

A creative person with a zest for life, Vikram Karve is a retired Naval Officer turned full time writer. Educated at IIT Delhi, ITBHU Varanasi, The Lawrence School Lovedale and Bishops School Pune, Vikram has published two books: COCKTAIL a collection of fiction short stories about relationships (2011) and APPETITE FOR A STROLL a book of Foodie Adventures (2008) and he is currently working on his novel. An avid blogger, he has written a number of fiction short stories and creative non-fiction articles in magazines and journals for many years before the advent of blogging. Vikram has taught at a University as a Professor for almost 15 years and now teaches as a visiting faculty and devotes most of his time to creative writing. Vikram lives in Pune India with his family and muse - his pet dog Sherry with whom he takes long walks thinking creative thoughts. 

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© vikram karve., all rights reserved.

© vikram karve., all rights reserved.