Puravankara Group — IPO Style Pricing

Innovation is the key to success in any business today. This is a very generic statement which we all agree to, but interpret in our own ways. Especially in the real estate sector, a majority of real estate developers have limited their innovative approach to either designing their products or planning their Ad campaigns, and in certain cases, both. No doubt these strategies appeal to a home buyer, if he sees potential in the project offering; but, what would leave a long-lasting impression, is the feeling of being empowered.

The Puravankara Group, which prides itself in following the most professional business practices, made a breakthrough in the year 2013, when, instead of pricing their projects themselves, they decided to give their consumers the power to decide prices for homes they would invest in. This was another feather in the cap for  the company which places consumers at the centre of its business model, which, according to their chairman, Mr. Ravi Puravankara, is the secret behind their success.

IPO Style Pricing by the Puravankara Group: How does it work?

Shunning the conventional method of pricing a property and then inviting applications from the customers, the Puravankara Group decided to handover the decision making to interested parties for a particular project. This method  draws inspiration from the practice of Initial Public Offering followed in the share market. The Group sets a price range for a particular project, at a pre-launch stage; prospective buyers are then invited to an event, where they are briefed on the project specifications, location, amenities, themes, and other aspects. Based on this information, they can decide how much they are willing to pay for the project and select a price from the range specified. This is termed as collecting the buyer’s expression of interest (EOI).

The Puravankara Group has been following this technique for almost all their projects since September 2013, and it has proved to be quite profitable both in the financial aspect and the consumer relationship. This practice helps in faster revenue generation, quicker bookings, resulting in lesser debts. Another subtle advantage of this method is that a home buyer feels involved in the project he is about to invest in, from the pre-launch stage itself, which will result in a good home buying experience for him.

Purva Palm Beach by Puravankara Group, Bangalore -- Picture of the buildings (still under construction) as seen from the the site.
Purva Palm Beach by Puravankara Group, Bangalore

The Benefit of this Pricing Strategy

This innovative approach to property pricing, has earned the Puravankara Group many loyal customers over the years and continues to do so. We also learnt that about 30% of home buyers consider Puravankara for their second home option. Further, this practice adds more transparency to the customer-developer transactions and establishes a strong bond between the two. Many recently launched projects such as Purva Palm Beach and Purva Westend in Bangalore and Purva Silversands in Pune have profited from this type of pricing. While in conversation with the marketing team of the Puravankara Group office in Bangalore, we learnt that around 70% of sales in Purva Westend can be attributed to this method, and people prefer it because it offers good flexibility and a sense of control over their investment.

Purva Westend (PC: Puravankara Group)
Purva Westend (PC: Puravankara)

With an unconventional approach to sales, innovative and ‘best in the market’ construction techniques, attractive theme based projects, and many more credits in its kitty, the Puravankara Group has emerged as a consumer-centric real estate developer and promises to tread the same path by always putting the consumers first.

Follow our coverage of Puravankara on PropStory.

Managed Residences at Purva Silversands, Mundhwa – Good things come in small packages

Indicative Photograph of a Manhattan Pod at Purva Silversands (Image Source: Puravankara)

The Puravankara Group, since its inception in the year 1975, has made a name for itself in the real estate sector in southern India, with impressive theme based properties in Bangalore, Chennai, Kochi and Coimbatore. Among the first realty firms in India to get listed, Puravankara is widely associated with quality, affordability and innovation in design and execution. It now brings the same attributes to Pune with the launch of Purva Silversands, its first property in western India.

Purva Silversands is to come up on a 20 acre plot on the banks of the Mula-Mutha River in Mundhwa. Built on the theme of a ‘beach resort, this ambitious project comprises a mixture of 1, 2, 3 and 4 BHK apartments, which suits most peoples’ budget and offers them a luxurious experience of living next to an artificial beach. One intriguing feature, that caught my eye, was the ‘Managed Residences’ at Purva Silversands. Having visited the site and understood the plans for these residences, I am going to assess the same in this note.

 

What are Managed Residences at Purva Silversands?

The managed residences comprise of Manhattan Pods and Condominiums, which will be present in Block 1 of Purva Silversands. These 1 bedroom residences, with sizes ranging from ~325 to ~ 450 square feet, promote the concept of ‘Compact living with Luxury’.

Indicative photo of a Manhattan Condo at Purva Silversands (Image source: Puravankara)
Indicative photo of a Manhattan Condo at Purva Silversands (Image source: Puravankara)

These furnished residences come with all necessary amenities, literally, right at your doorstep or within your building. Located right next to the Mula-Mutha River, with a separate entrance from the rest of Purva Silversands, these residences offer exclusivity and great views of the surroundings.

Who are the target customers for these residences?

With managed residences, Puravankara appears to be targeting those segments of home buyers, who often do not quite get what they are looking for, in the normal apartments and often end up having to compromise with regards to their budget and/or convenience.

One such customer segment is that of singletons or small families of two, who are looking to base themselves in Pune, for whom these compact apartments are both comfortable and affordable. Another customer segment is nearby companies, for whom these residences serve as a perfect guest house, to house employees or expatriates for short durations.

A third segment is investors who can purchase these apartments at not too great a cost and look to lease out these apartments to earn rental income.

What does the location of this property have to offer?

The biggest positive that Mundhwa, the location of this project, has is its proximity to the nearby business districts of Kharadi, Magarpatta City and Viman Nagar, all within a 4-6 km radius, which makes it convenient for professionals working in companies in these areas. Lower land prices in Mundhwa, as compared to its saturated neighbouring localities, ensures apartments here are more affordable.

Site photo of Purva Silversands, with Eon IT Park in the background
Site photo of Purva Silversands, with Eon IT Park in the background

Pune airport and railway station are not too far away either. A number of malls and retail outlets are located around Mundhwa, which cater to all necessities and also provide entertainment options to residents.

How is the connectivity to this property?

Mundhwa is located on the opposite bank of the Mula-Mutha River from Kharadi and a soon to be constructed bridge across the river, near this property, should greatly reduce the distance and time taken between these areas. An under-construction riverside road will directly connect Kharadi and Mundhwa to Kalyani Nagar and Yerwada. Also on the horizon is the Pune Ring Road project, which will connect Mundhwa to other parts of the city and lead to a development boom in this area.

What facilities will be provided to residents?

Residents of the managed residences have a lot to look forward to, with a number of facilities planned to be provided to them, without them even needing to step out of their block. Located just below the managed residences, will be a retail block, which is expected to have a convenience store for daily necessities of residents, along with a high-end boutique store and an ATM.

The residents also need not always eat at home, with options for both casual dining and fine dining likely to be offered by means of a café in the retail block and a roof top restaurant. They have the option of utilizing the gymnasium for exercise purposes or pamper themselves at the spa, should they seek a relaxing massage after a long hard day. Their laundry requirements are also taken care of with the provision of a Laundromat containing a number of washing machines and dryers in the same block, which would help residents save valuable time and utilize the same in other pursuits.

Indicative picture of a Laundromat (Image Source: palcleaners.ca)
Indicative picture of a Laundromat (Image Source: palcleaners.ca)

For the benefit of home owners looking to rent out their apartments, Puravankara will provide a Leasing Desk, which will help the owners in finding interested tenants, paying their utility bills and in completing all necessary documentation to ensure the agreement is foolproof.

Conclusion

Puravankara appears to have made a well thought-out move in providing compact managed residences in Purva Silversands. With a good location, excellent facilities, affordable rates and great views of the river and its surroundings, prospective residents have a lot of good things to look forward to. Should this project be successful, it could provide a template for affordable and compact yet comfortable housing, which is likely to hold great promise across India.

 

Read more about the project on the developer’s website

Purva Silversands, Mundhwa – Beach Living At Pune

The erstwhile pensioners’ paradise of Pune is now a vibrant, cosmopolitan melting pot of people coming in from across the country to work and settle here. The Puravankara Group, which has a track record of successful projects in Bangalore, Chennai, Kochi and Coimbatore, has chosen this city as the site for its first residential project in Western India, named as Purva Silversands.

With the emergence of a number of IT corridors in the eastern part of Pune such as Magarpatta City, Kharadi and Kalyani Nagar, the demand for affordable as well as luxurious housing has risen sharply in the aforementioned and neighbouring areas. The locality of Mundhwa is one such area, which many developers, including Puravankara, have chosen to create modern and spacious complexes.

Updates as of November 2017 –

Purva Silversands, a landmark project by Puravankara Developers, being their first project in west India, will be ready to move-in by November 2021. The current sizes and prices of the apartments offered in the project are as follows:

Apartment Configuration Area (in sq. ft.) Price (in Rs. Lakhs)
2 BHK 910 – 1227 77.90 – 94.94
3 BHK 1427 – 1439 102  – 110

Location

In order to reach Purva Silversands, one needs to take the road from Kharadi to Hadapsar. After crossing the bridge on the Mula-Mutha River, take the first left turn on to Manjari Village road. On reaching a fork on this road, take the road on the left side and continue driving, till you cross Florida River Bank. Take a left turn and you arrive at the property.

Approach road to the site of Purva Silversands
Approach road to the site of Purva Silversands

Mundhwa is now under Pune Municipal Corporation limits and is undergoing a major transformation. Purva Silversands is in close proximity to Eon IT Park (6 km), Zensar (4.5 km), Magarpatta City (4.5 km) and Kalyani Nagar (6.5 km) and primarily targets software professionals working in these hubs. With the expected construction of a new bridge across the river, the distance between Kharadi and Mundhwa will be more than halved.

Seasons Mall, Amanora Town Centre (4 km), Inorbit Mall (6.5 km) and Phoenix Market City (7.5 km) are major retail outlets in the neighborhood. Pawar Public School, Vibgyor School and Orbis School are located nearby, as are Columbia Asia Hospital, Sahyadri Hospital and Noble Hospital. Both the airport and railway station are 11 and 9 km away respectively.

Project Specifications

Purva Silversands is coming up on a 20 acre plot on the banks of the Mula-Mutha River and is built on the theme of a ‘Beach Resort’. Puravankara has a similar project in Bangalore, called as ‘Purva Palm Beach’. Work on the site is to begin by August 2016 and possession will be provided by 30th November 2021. All apartments will be handed over in an unfurnished state, but owners can get them furnished by Puravankara at an additional cost.

Site photo of Purva Silversands, with Eon IT Park in the background
Site photo of Purva Silversands, with Eon IT Park in the background

In the first phase, 6 towers (4, 5, 6, 7, 8, 9) will be built around a central lagoon, with 6 more towers coming up in phase 2. This property will have 1, 2, 3 and 4 BHK apartments, with the 2 and 3 BHK apartments having two options: comfort and grand. The base rate of apartments is Rs. 4995/square foot. The price of 1 BHK apartments starts from Rs. 40 lakhs, while the starting prices for 2 and 3 BHK apartments are Rs. 57 lakhs and Rs. 86 lakhs.

Towers 4, 5, 6 and 7 lie between the lagoon and the Mula-Mutha River, while towers 8 and 9 lie on the other side of the lagoon facing the city. The apartment specifications are similar for adjacent towers, but the apartments themselves are facing in opposite directions.

In towers 4 and 5, there are 24 floors, comprising of 21 residential floors situated above 3 floors for parking. Each residential floor has 4 apartments. Two are lagoon facing 3 BHK comfort apartments (~1395 square feet). The other two are river facing 2 BHK grand apartments (~1073 square feet). Towers 6 and 7 have the same apartment configuration as that of towers 4 and 5, with the only difference being that in towers 6 and 7, the 3 BHK comfort apartments are river facing while the 2 BHK grand apartments are lagoon facing.

Tower 8 has 20 residential floors above 2 floors for parking, with each residential floor having 8 apartments. Out of these 8, four apartments are city facing 2 BHK grand (~1073 square feet) apartments. Two other apartments are lagoon facing 2 BHK comfort (~883 square feet) apartments. The last two apartments are lagoon facing 1 BHK (~603 square feet) apartments. Tower 9 has a similar configuration as tower 8, but has two additional residential floors (a total of 22 floors), above 2 floors for parking. Also, here the four 2 BHK grand apartments are lagoon facing, while the two 2 BHK comfort apartments and two 1 BHK apartments are city facing.

Purva Silversands also provide Managed Residences, which are compact serviced apartments, comprising of Manhattan pods and 1 bedroom Manhattan condominiums.

The first two phases of this project have now been registered under Maharashtra RERA. Phase 1, comprising of buildings 4 to 9, have a registration number of P52100007566, while Phase 2 containing building I, has a registration number of P52100005377.

Amenities and Key Differentiator

  • The USP of Purva Silversands is the central lagoon area, which features a number of unique amenities, such as a beach, wave pool and snorkeling pool. With a swimming pool and kid’s pool thrown in as well, a resident need not visit a water park!

  • Residents can indulge in other sports, with beach volleyball and tennis courts, golf putting green, cricket pitch, jogging track, pool, table tennis and a gym.

  • Residents are also provided yoga and meditation decks, a koi fish pond, a senior citizens court and a children’s play area.

  • The property’s affordable apartments cater to the needs of a variety of customers, including singletons, families, those looking to invest in property and corporates looking to house guests.

  • Each apartment offers great views to residents, whether of the lagoon or of the river and riverside promenade. These have been designed to provide more living area.

  • The managed residences will provide their residents with a number of services including a retail store, convenience store, spa, roof-top restaurant, ATM and Laundromat.

Puravankara Properties is looking to make its mark in the extremely competitive real estate market of Pune. With Purva Silversands , it aims to carve a niche for itself as a provider of theme-based, comfortable and affordable living.

Read more about the project on the developer’s website