However, there are also risks involved. The city planning and municipal authorities may be slow in providing basic infrastructure such as roads, sanitation and electricity and water supply in the areas adjoining the parent location. If this is the case, projects built in these areas will fail to attract home buyers and investors until the locations themselves become viable. In a best-case scenario, a developer will have ensured that the city's development plan has indeed scheduled infrastructure enhancements to the new location.
In Pune, some of the prime examples of spillover demand and infrastructure working together to successfully raise the real estate profiling of locations are Wagholi (spillover demand from Kharadi), Dhanori (spillover demand from Viman Nagar), Charoli (spillover demand from Dhanori, Viman Nagar and Kharadi), Baner (spillover demand from Hinjewadi) and Wakad (spillover demand from Hinjewadi and Baner). Timely infrastructure has been the common thread throughout these success stories.
Likewise, the demand for homes in Mumbai spilled over from the unaffordable parts of the MMR to the Mira-Bhayander, Vasai-Virar and Kalyan-Dombivali belts. However, Navi Mumbai has arguably been the greatest beneficiary of the spillover demand from Mumbai, thanks to superior infrastructure ensured by CIDCO. thus, the real estate market in now-prominent areas like Vashi, Koparkhairne, Airoli, Ghansoli and CBD Belapur is perpetual boom mode even today.
Arvind Jain is the Managing Director of Pride Group
