New Development Control norms to transform the Pune’s Skyline

The new DC norms in the Pune provides increased floor index in old gutted and transit-oriented development (TOD) zones. The announcement will serve dual purpose-resolve the incessant traffic problem and cater to the rising urban housing demand.

The State government’s commitment to increase FSI along the busy routes of Pune city has made both developers and the home buyers happy. As per the new norms of the DC, a minimum FSI of 1.5 has been granted for the areas where road width is 9 mtrs. The most active localities in the city along the metro corridor and bus rapid transit have bagged a maximum FSI of 4. The areas which have roads with 30 mtrs width and more have received a FSI of 3.

This development will surely help the Property in Pune to grow. The old congested areas of the city that will come under its ambit are- 17 Peths and micro-markets such as Karve Nagar,Senapathi  Bapat Road, FC road JM road and Laxmi Road. There are several properties in the area which are made in old bungalow and wada’s style. The newly formed regulation extends a provision of the redevelopment of these old structures into luxury flats in Pune. In addition, the new norm has a provision which allows that any building which is older than 30 years can be revamped. But, the new regulation allows only small tenements that are proposed with a built-up area ranging from 27 sq feet to 1300 sq Ft.

There huge demand of housing properties in Pune. So, this new regulation will also help in reducing the traffic congestion in the city as the FSI permitted in these areas are as per the width of the road. The increased densification would lead to a higher influx of the humanity and more vehicular traffic on road. So, as per this new policy area with narrow roads are granted lower FSI and localities with wider roads are permitted FSI as high as 4.

Currently, Pune infrastructure is reeling under immense pressure. However, it is equally important the housing development is carried out with a sense that does not disrupt the traffic flow. With this new announcement, the Pune city will grow in a different manner which will increase housing options at the same time the life of the city dwellers will also improve who have been suffering from high traffic congestion.

Marvel Realtors Pune acquired 3-acre land parcel auctioned by the German government

Pune-based Marvel Realtors has raised about Rs 150 crore in a structured deal from Piramal Fund Management, an Ajay Piramal-led group company. Marvel will use the proceeds to construct a residential project.

Piramal Fund Management is the realty arm of Piramal Enterprises. The realty company, which acquired 3-acre land parcel auctioned by the German government a few weeks ago, can pay the lender about 15-17% interest with about five-six year maturity, two people familiar with the situation told ET.

“The deal has two projects -- Isola (at NIBM Road, Pune) and Fria (at Whagholi, Pune),” said Khushru Jijina, Managing Director, Piramal Finance, confirming the matter. “Both are mid-income residential projects in Pune with Phase I being completed and delivered. All approvals come in place For Phase II, and construction because of this phase has already begun.”

Ticket size per unit for the projects is less than Rs 90 lakh.

2-3 weeks ago, Marvel Realtors had acquired a 3-acre of land parcel auctioned by the Federal Republic of Germany for Rs 168 crore. The builders in Pune has paid Rs 56 crore per acre price for the land parcel at Pune's Boat Club Road, a leading location in the city.

“We shall use the proceeds for the construction of a residential project within Pune,” Vishwajeet Jhavar, CEO, Marvel Realtors, told ET. “We're also in discussion to boost further funds (from lenders) to support our constructions.”

There is no intermediary for the latest deal.

Marvel group is a preexisting client of the Piramal group company with more than four years of relationship. Prior to the deal, Piramal has been doing four transactions with the Marvel group for Rs 430 crore collectively.

Of these four, two transactions have been fully closed while an incomplete exit was achieved in among the deals which is fully closed by March 2017, the company said.

“Considering our relationship and past experience with the group, we directly structure and create transactions

With many banks turning averse to builder loans, such fund raising routes are increasingly becoming popular.

About per month ago, Piramal Fund Management extended Rs 425 crore as construction finance for realty developer Vatika Group's commercial project in Gurgaon. During once, it deployed Rs 700 crore collectively against two commercial properties in pune.