How does Overdemand in Pune affect the Real Estate Sector?

The population in India has almost traversed the population in China and has become the most populous country. Now, this incredible surge of people in the nation definitely has a major impact on the real estate that has to be accessed. 

In The Real Rich Show, Mr Atul Goel, Goel Ganga Group Owner while elucidating the consequence of the spurt in population says, The very first and foremost impact indubitably is that additional abundance of houses is expected to accommodate massive digits of people. Secondly, More people need an elevated number of employment vacancies and opportunities. Now obviously, the enhanced need for occupational or livelihood recourse can’t be fulfilled in townlets and small cities and hence people are going to depart from their respective hometowns and migrate to accommodate themselves in the big cities, one as Pune. 

So when we say there is a surge in population, these are the consequences of it and hence their demand will always exist. And in order to match up to the demand, there must always prevail supply. 

A misconception of superfluity or oversupply is acting as an impediment in people’s minds that one must overthrow. The city of Pune rarely has an uneducated population. Every person who is either educated or studying comes to Pune. So the public in Pune is very much aware of creating and grabbing the opportunities available to them. 

The oversupply is composed of some rational, practical and thoughtful investors. They would invest 10 or 20 years before any other person could visualize real estate. Witnessing them investing, we must look upto and follow their practices and share their vision. If they are trying to become the real rich, why you can’t?

The Impact of organization and migration on the market:

Mr Atul Goel Ganga Pune, the author of The Real Rich said, The whole regional plan of The Pune Metro Regional Development Authority (PMRD), is 7600 square kilometres. They are planning the ring roads and the distinctive economic centres. All these will create many employment alternatives, and a lot of schools, colleges and universities would come up. Initially, they would land here for educational objectives than for employment motives. Once they settle here for employment, they would need houses, and once they make themselves secure, they would want to settle with family and hence would require larger houses. The whole economy is going to rotate like that. Pune would no more be merely a city but a conglomerate of various cities.

The demand and the supply constantly have to go hand in hand. Any fluctuations or imbalance isn’t a healthy indication for the economy. As an industry, there is a persistent need to match up the demand and supply. The over-demand for housing has to be overcome by Oversupply due to a huge number of industries coming up in Pune.

Atul Goel Ganga Pune says that to be able to cater to the exact demand and avoid the concept of supply to an extent, there is a need to comprehend that the existence of demand and supply is very much location-centric,  which has to be accessed. The analysis of the city’s demand and supply would be dubious and vague since the migration of people is as per the location rather than the city. 

Is supply for the future demand? 

Atul Goel Pune clarifies that there already exists a buyer (the demand). If there is a person who has migrated to Pune, is able to generate a handsome income and is residing in a rented apartment, there are banks that are ready to lend him the money if he is ready to pay the monthly payments more commonly known as EMIs. 

Catering to the already prevailing demand can not be treated as oversupply. Glancing towards the over demand which the city has cultivated because of the new educational institutions, medical facilities, new industries and new data centres and the population growing by 35-40 per cent year on year.

To sum it all up, Atul Goel said, there exists no prosperous situation if there is a situation where supply is less and demand is more or vice-versa, that is when demand is more and supply is less. The fairest situation is when these are in equilibrium. This would even help the buyers to get their demand fulfilled at an optimum and reasonable price while making themselves available as a prudent investment option. 

We often see people making irresponsible statements about oversupply which either they overheard over dinner or over a casual conversation and they form opinions without really talking to an expert or a professional consultant. Either they are not serious about their money or they are just playing for their luck. Because anybody who is really serious about their money won’t act upon something without a good exploration and research with the right kind of people. Atul Goel compared this with an example of a sensible student looking for studying abroad who would consult a specialist who would have sufficient knowledge of decent colleges offering worthwhile courses and won’t just believe and act as per his friend’s advice. 

Similarly, investing in real estate comes with a prerequisite of decent research by referring to someone who is very intensively into it.

And hence Atul Goel Ganga has initiated the real bridge series – The Real Rich Show and wrote the book, The Real Rich, committing to the industry to grow and sustain while empowering the buyers to be wiser while making investment decisions, lending them an eye to look upon The Real Estate Sector.

Atul Goel Ganga Group further says, Real Estate neither is barely a product nor an investment but a product plus investment. It’s not just a product that you consume and forgets about it. You stay there as long as you want and get it appreciated too, hence making it an investment. Hence, while calculating yield, it is rental yield plus property appreciation. 

To conclude the episode, Atul Goel said that yes there are diversions in the name of investment products like mutual funds, share market and all but Real Estate has always been a part of the most basic necessities – “Roti, Kapda and Makaan”. 

Every specialist would educate you about their relevant product now on the horizon, it is your educated voice to determine your investment option.