Final Research Paper
Final Research Paper
UMMEHANI
MARASHAH – A23
Email ID:
ummehanimarashah@
gmail.com
Guided by
Abstract
Water unavailability is one of the global challenges which could affect the real estate sphere as
an example. Particularly during the summer months, water shortages are a commonplace event
in India. For instance, late monsoon rains were responsible for the water crisis in Pune in 2020,
and there is a cyclical crises period in Pune before and during the summer.
There are several cities in India which are suffering from the water crisis right at the time due to
the climatology of India has been drastically changed in last 10 years due to the pollution and
population as well. Water unavailability affects the region as it stops the development of the city
in all manners, in the terms of construction, infrastructure, population. Also, and the image of the
region gets highly terminated.This research paper is about the region which might be facing
water crisis which is affecting the real estate business. In this research we came through a lot of
various aspects in which this research leads to many different paths. Water unavailability has
profound implications for housing, affecting everything from construction costs and housing
supply to urban planning and migration patterns. Regions that face chronic water shortages must
adapt by investing in water-efficient housing designs, improving water management
infrastructure, and addressing the social inequalities that emerge in access to adequate housing.
As climate change intensifies, these challenges will only grow.
Now, the main question is that does really water unavailability is having a solid impact on
PUNE city’s real estate business? or it is just a seasonal business which is not dependent on the
water crisis and has a specification to run their business industry.in this research we will throw
some light on certain regions of Pune where there has been real impact on real estate industry.
Key Words –
PUNE, water unavailability, real estate, climatic changes, development, development crisis,
architecture, construction, infrastructure, population, real impact, water shortage, housing
industries, seasonal crisis, Water crisis, water management, housing industry, Rental houses.
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1. Introduction
This research paper is about the Pune city which might be facing water crisis which is affecting
the real estate business. In this research we came through a lot of various aspects in which this
research leads to many different paths. When a city or region hits the water crisis it affects it in
many ways. which can be very to the region in terms of development. My research is based on
interviews, surveys, data collections and analyzation, which shows how the research goes on
with all the data.
These impacts are further exacerbated by the effects of climate change with water troubles being
one of the major concerns. Water shortage, which is becoming major in the real estate sector,
always has a great impact especially in the regions where there are already water shortages. This
can affect the
1. marketability of properties,
Majorly the cities which are developing on the high run just like Bangalore, Chennai, Pune,
Hyderabad, Delhi. All the cities are known as the metropolitan cities, mostly developed in the
terms of architecture, infrastructure, education, employment, economy, sociality, culture,
Technology and digital mass media. PUNE faces a significant water crisis due to climate change,
population growth, poor water management, pollution, and overdependence on agriculture.
Address this, drastic water reform policies, rational water use, infrastructure investments, and
changes in water management laws are needed. Water unavailability affects the region as it
stops the development of the city in all manners, in the terms of construction, infrastructure,
population. Also, and the image of the region gets highly terminated.
As previously stressed, these examples in particular focus on the impact of natural resources
depletion on real estate and housing markets in some other cities. As well
• Cape Town, South Africa: The 2017-2018 water crisis is the best-known instance of real
estate being affected by water unavailability in Cape Town since real estate prices in the
city dropped due to water restrictions and associated risks.
• Western United States: In the U.S., recurring droughts have resumed in some states,
California and Arizona, in particular affecting values of land and other real properties as
well.
Research is based on few main points of view which explains the research clearly and let the
reader has the right opinion and knowledge about the whole research and the main purpose.
Points that are considered as the factors in the research:
1. Property Value Drops in Areas Affected by Water Reduction
2. Higher Maintenance and Operation Costs
3. Regulatory Changes and Zoning Laws
4. Increased Demand for Sustainable Properties
5. Migration and Urban Shifts
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Solving the water crisis in real estate requires a combination of technology, smart planning,
government regulations, and community awareness. Developers can lead the way by designing
buildings and communities that conserve water, reduce reliance on freshwater sources, and
ensure sustainable growth in the face of water scarcity. Incorporating these solutions helps
address the water crisis and adds value to properties by making them more sustainable and
attractive to environmentally conscious buyers.
Water scarcity has profound implications for housing, affecting everything from construction
costs and housing supply to urban planning and migration patterns. Regions that face chronic
water shortages must adapt by investing in water-efficient housing designs, improving water
management infrastructure, and addressing the social inequalities that emerge in access to
adequate housing. As climate change intensifies, these challenges will only grow.
As populations grow and the demand for freshwater rises, the gap between water supply and
demand widens, particularly in arid and semi-arid regions. It can be caused by both natural
factors, such as climate variability and drought, and human-induced factors, such as over-
extraction of water, pollution, and inefficient water use. The increasing severity of water scarcity
threatens sustainable development, food security, public health, and economic stability in many
regions.
This research paper is based on the water scarcity which is adversely affecting major cities in
India in the terms of their real estate and housing business. The major factors a city needs to
have a strong housing foundation are good quality of water, air, space and food. So, this research
will majorly List down the effects of bad quality of life in the city due to the insufficiency of the
water.
Pune, a rapidly urbanizing city in Maharashtra, faces significant water challenges due to a
growing population and strained water resources. The city's reliance on monsoons and river
systems, coupled with frequent droughts, highlights water scarcity as a persistent issue. Water
shortages have the potential to affect multiple sectors, including agriculture, industry, and real
estate.
Research Question:
“How does the recurring issue of water scarcity in Pune affect the real estate market,
particularly in terms of property values, construction costs, and buyer behavior?”
• Natural calamities
Natural calamities like drought, and flood , hurricanes , cyclones and typhoons
such natural disaster can cause water problem and they can also destroy the
complete region.
• Lack of rainfall
In Pune, from 2020 to 2023 the rainfall in Pune has been really less than
compared to the years before 2020 .in year 2019 Pune had rainfall entire year
,the climate was rainy for almost 8 to 9 months. But for the last 3 years Pune had
also experienced the high heat around 40 degrees in summer season.
When a area is facing a water problems so the locality or the society takes
the step to provide water to the people by any means ,now that providing
water can be expensive if all the cost is considered .
Migration Trends
In-Migration: Pune attracts people from various regions, including Mumbai, for job
opportunities in IT, education, and manufacturing. This influx increases demand for housing.
Out-Migration: Some residents migrate to suburban areas or other cities for better living
conditions, affordable housing, and lower pollution levels.
2. Urban Shifts
Suburban Growth: Areas like Hinjewadi, Kharadi, and Wagholi are experiencing rapid
development due to their proximity to tech parks and improved infrastructure, making them
popular among homebuyers.
Affordable Housing Demand: With rising property prices in central Pune, there's a shift towards
affordable housing in suburban regions, prompting developers to create more budget-friendly
projects.
3. Impact on Real Estate
Price Fluctuations: Increased demand in emerging suburbs leads to rising property prices in
those areas, while prices in older, saturated areas may stagnate.
Infrastructure Development: Migration drives the need for better infrastructure (roads, schools,
hospitals), prompting government investments, which further boost real estate development.
The real estate business, though highly lucrative, faces numerous financial and
investment challenges, Even while real estate can provide stable long-term growth
and appealing returns, investors must carefully plan, manage risk, and understand the
market in order to successfully negotiate these financial and investing obstacles.
Some of these risks can be reduced by building a diversified portfolio and making
use of technology, market research, and financial know-how.
A huge change in pricing of the area is done. Such as regions like Kothrud, vimaan nagar
and kharadi do get pmc pipes and muncipalty water so the projects that have been
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sanctioned overf there are quite huge and high priced projects due to the region and the
availability of the resources,population Pays for the region and as well as the resources
which are provided .
If we compared that to the southern part of the pune which includes area such as
• Handewadi
• Mohammadwadi
• Holewasti
• Pisoli
• Undri
In these area , the projects are too small and middle class mainly deficiency of water faced by the
people who lives in this localities,so the prices of projects are also very low and affordable
compared to Kothrud and kharadi.
And in undri ,pisoli and mohammadwadi – 2bhk prices are from 40l to 60l
3bhk prices are from 60l to 80l
And their rents are quite affordable for middle class population.
1.6 Solutions
Here are a few solutions that will help control water scarcity in the future and contribute to the
development of the real estate market in the meantime. A few solutions are:
1. Water efficient buildings
2. Rainwater harvesting
3. Greywater cycling
4. Desalination and water purification solutions
5. Green building certification
6. Decentralized water systems
2. Literature Review
• Water Scarcity and Urban growth: Examine research demonstrating the historical
effects of water scarcity on urban growth in cities worldwide. Urban planning and
housing markets were severely impacted by Cape Town's water issue, for example.
Similar problems have been experienced by Indian towns like Bangalore, where a
lack of water has increased the cost of real estate with dependable water
connection.
• Effect on Real Estate Prices: It will be helpful to conduct research demonstrating a
relationship between resource availability and property values. Areas with regular
water shortages often see fewer property demand, leading to a decline in property
prices. Examine case studies where the dynamics of the real estate market have
been impacted by the availability of water. Similar Problems in Other Cities:
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3. Methodology
In my research I have used methodologies which are as follows:
2. Data Collection:
a. Primary Data:
i. Surveys: You can conduct surveys with homeowners, real estate buyers,
and developers to understand their perceptions and experiences related
to water scarcity.
ii. Interviews: Consider interviewing municipal authorities (such as the
Pune Municipal Corporation), water supply boards, real estate agents,
and urban planners to gather insights on water management and real
estate impacts.
b. Secondary Data:
i. Utilize reports and studies from sources like the Maharashtra
government, real estate agencies, and research institutions.
ii. Access public databases for property price trends, municipal water
distribution reports, and census data to analyze population growth in
relation to water supply.
Choice of methodology depends on the research question, the nature of the data, and the
field of study. While qualitative methodologies are ideal for exploring subjective,
complex phenomena, quantitative methods are better suited for measuring and
analysing variables in a more controlled, statistical manners.
So firstly, I did a survey on water scarcity in Pune region, by the data I collected I realized that:
• From 2020 – 2023 there was major water scarcity in Pune.
• Posh area to underdeveloped areas all are facing water scarcity.
• Lack of Domestic and drinking water as well
• Khadakwasla dams water level was too low compared to the neutral level.
• Most of the people in Pune are tenants are living in rental houses.
• Most of the people resides in the society and in most of the society water tankers are
provided for domestic and drinking water.
• Mostly people get water from the corporate water tanks, which is not healthy or fresh
water, that water is extremely dangerous to human health.
• It mostly causes hair fall, skin allergy, stomach problem, and other health problems
This whole data which has given below has been collected through the interview with few real
estate agencies:
1.RAJ PROPERTIES
2.PATEL PROPERTIES
3.KARBALAI ESTATES
In Pune, the area in which real estate business is majorly affected is southern Pune which
includes:
1. Undri
2. Pisoli
3. Mohammad wadi
4. Handewandi
5. Holewaasti
This southern part of the Pune where PMC does not play a significant role, there are no water
PMC pipes installed in the southern part.Of the city, because this area of city does not lie in the
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In these areas real estate business is majorly affected because the large amount of population is
declining the offers and projects in these areas again because of the no availability of PMC
water. Only people whose communities are already residing in these areas are interested in
buying or renting the properties in southern parts.
In Pune, the water crisis major reason could also be the inadequate usage of water such as
water usage in construction, which is completely wrong because if there is no water for usage
and drinking, there should not be water used In construction. The construction cannot take place
if there is no adequate amount of water and electricity in the region. But this majorly happens in
Pune due to political power and contacts, people do get their projects sanctioned due to the
powerful background Corruption is major problem in India, all rules and regulations are broken
due to corruption and honesty is too hard to find. People in this business are mostly involved in
such situations.
Water businesses is one of the most money making in today’s world in India where people who
are selling water in southern part do not let PMC enter outskirts of Pune due to threat to their
business.
If we talk about real estate business loss due to lack of water no good roads have been
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constructed and on that due to lot of crowd and traffic, shops around built have too high prices
due to the road location but due to the water scarcity very less amount of
people buy the properties. Which is the major loss for the business.
Mostly people who are residing abroad and just needs a property as an investment are the
people who are buying the properties.
And there have been large amount of people who owns the property in such area have sold their
properties due to the issue.
Due to terrible state of the roads, which causes a lot of traffic and chaos also repels the interest
the of the client according to the agents. Clients who look up for peace and quietness, are not a
fan of crowd and chaos so they particularly avoid such areas, due to this reason also they have
lost lots of clients.
There is a survey done on the water crisis people are facing in major cities of the india, the
major cities Are Banglore,Pune,Mumbai,Chennai ,delhi. People are suffering from major water
deficit in these cities and either people are living on the bore water or either there is a strong
water business going on in the locality which transports the corporate water tankers in the area.
5. Conclusions
• The real estate industry's financial and investment difficulties have a significant
impact on an entire region. These difficulties can impair a region's overall
competitiveness, hamper economic growth, decrease the affordability of housing,
and strain the infrastructure. The area may face challenges in attracting firms,
talent, and investors due to socioeconomic inequality, environmental
degradation, and a lack of innovation. A proactive strategy combining
government initiatives to stabilize and grow the real estate market with private
sector investment is needed to address these issues.
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• In conclusion, the real estate industry's financial and investment difficulties have
a big impact on a region's overall development. These difficulties may:
Reduce employment creation, restrict urban expansion, and lower tax revenues to
impede economic growth.
exacerbate societal problems including gentrification, inequality, and the cost of
housing while perhaps escalating societal unrest.
Postpone infrastructure and technology development to reduce a region's
competitiveness and sustainability, especially when it comes to innovation and
the creation of smart cities.
Increase the risk to the environment by using unsustainable practices and
unrestrained development.
disrupt the real estate market, resulting in fluctuating prices, shelved projects,
and unfavorable investor perceptions.
All things considered, a place dealing with these issues may see slower economic
growth, more inequality, and decreased appeal to both citizens and businesses.
Using creative funding methods and government involvement as well as other
strategic measures,
• The general prosperity and progress of a place is heavily dependent on the state
of its real estate market. Persistent financial and investment difficulties in real
estate can impede long-term environmental and economic sustainability,
suppress urban development, and amplify socioeconomic inequality. Holistic
strategies incorporating cooperation between financial institutions, governments,
and developers are needed to counter this. The region's economic and social
well-being can be ensured by utilizing tactics including public-private
partnerships, affordable housing initiatives, and creative financing models to
support real estate recovery and growth.
To elaborate on the conclusion, the real estate industry's financial and investment
difficulties have a complicated knock-on effect on the infrastructure, social
fabric, and economics of a region. These problems have wider societal and
environmental repercussions in addition to affecting investors and developers:
Acknowledgement
I would like to express my gratitude to my esteemed advisor Ar. Shraddha Manjrekar for all
the support, instructions, and encouragement I received throughout this difficult project. I am
appreciative of the work of Ar. Shraddha Manjrekar whose study on a similar subject was an
inspiration that paved the way for this project. Finally, I would like to express gratitude to my
friends, mentors and colleagues whose encouragement kept me focused and helped me overcome
numerous challenges during my research journey.
3. Factoring the effects of climate change into Real Estate Investments BY Lewis, R. K.
https://www.washingtonpost.com/realestate/factoring-the-effects-of-climate-change-
into-real-estate-investments/2019/03/07/aa60f186-3f7f-11e9-a0d3-
1210e58a94cf_story.html
4. Sustainability in Real Estate: Solution to Water Crisis in Bengaluru by Vishnu b
https://www.kots.world/blog/sustainability-in-real-estate-solution-to-water-crisis-in-bengaluru
https://www.academia.edu/115092293/A_Study_of_Water_Management_in_Built_Environme
nt_in_Rural_Part_of_Western_Maharashtra
7. Literature Review: How Does Water Play a Role in Forming Land Value?
By: C Adelina
https://iopscience.iop.org/article/10.1088/1755-1315/837/1/012011/pdf
10. Housing Beware: Water Scarcity Is Only The Surface Of The Issue by By Jennifer
Castenson
https://www.forbes.com/sites/jennifercastenson/2022/01/04/housing-beware-water-scarcity-is-
only-the-surface-of-the-issue/
These are the ten papers that I’ve read which are related to the topic of my interest . Real estate
market changes and evolves every year depending on the footprint, FSI, population, demand
And environment of the city.It also mainly depends on the lifestyle and the standard of living of
the city.Water scarcity has a profound impact on real estate markets, especially in regions
where water is already a limited resource. The effects can be both direct and indirect, altering
property values, demand, infrastructure investments, and urban planning.
THANKYOU