Tuesday, January 08, 2008

Everybody in Pune is talking about Magarpatta City's upcoming project 'Nanded City' on Sinhgad Road

Last Sunday morning, while coming back from Sinhgad, i stopped at Khadakwasala Dam. No, not to enjoy the beauty of the sleepy lake. I prefer and enjoy running water,especially when it wakes me in the morning (through the leaky kitchen tap). I stopped because i was too tired to push the peddles of my old bicycle.

After a few minutes of rest, i started wondering about my cycling. Is it wise to get an inspiration from my own blog on "cycle to work"?

Is it worth going to Sinhgad on a Sunday morning and not eating Kanda-Bhaji? Am i punishing myself because I blog on "health care and wellness"?

Do i truly believe that i do not deserve to eat Kanda-Bhaji because i am not going to Sinhagad after booking a flat at Darode Jog's "Crossover County"?

So many questions means time to ride the cycle, i realized and hit the road again. After crossing Khadakwasala village and the gate of CWPRS, i saw the site of 'Swami Samarth Developers' to the right. Surprisingly, the site office was open. Obviously, i stopped.

"What is your requirement?" asked the person when i was trying to enter the office. Though he was standing at the tea stall next to the office, i understood his question and told him that i was looking for 2 bhk flat for investment purpose. I was confident i was looking high net worth individual because i was in my worst shorts.

"Come on, i will show you the last 2 flats" he said and stared walking. We stood in front of a building whose third slab was cast, may be yesterday. He pointed at the slab and told me it will cost me 20 lakhs.
"What is the asking rate?" i asked.
"2,000!"
"2,000?"
"Yes, if you go to the builders' office, he will reduce not more than 35 rupees." he warned me.

I started looking at the completed buildings on both the sides of the under construction building without responding to him. He told me those buildings are 2-3 years old and at that time the rate was 800 rupees.
"In 3 years from 800 to 2,000! Why?" i asked him.
"Wait a month and the rate will increase more." he said with joy.
"Why? What is going to happen in a month?" i asked.
"Magarpatta is coming in Nanded." he said.
"How can Magarpatta come to Nanded? Magarpatta is not on wheels." i tried to be humorous. "What is this place? Is this Nanded?" i asked.
"No. This is Kirkatwadi. Nanded is little further down the road." he said and started talking about how every thing is going to change in a few months.

Kirkitwadi! Other day, my dear friend Sachin Kulkarni, M.D. of Vastushodh Developers, was talking about launching his mega township in Kirkatwadi. So i went a little ahead and stopped at Kirkatwadi junction. Sipping tea at the road side stall i tried but couldn't imagine Sachin's silver Mercedes driving down that small kacha-road to the site. No wonder most of the builders visit their sites only once in a while.
But where is Nanded? Some one told me to go half a kilometer ahead so i started cycling again.

I crossed a canal and took a turn and saw a board of Jhala and Kodre Associates' "Rajyog". Nearly a kilometer inside down the main road, this is one of the well known project on Sinhagad road. Well known means it's ads were in the news paper all the time.

Impressive main entrance gate, lovely row houses and new white buildings were tempting me to go and inquire about the availability. Obviously, there was no one in the site office. But the site engineer gave me a brochure and said rate is only 2,700 rupees.
"Can i get anything in ready possession?" i asked as if i was not hopping to get a ready possession flat. But, we all know, in every scheme ample of ready possession flats are available.
"Ready possession at 2,700 rupees is good but not on Sinhagad road." i complained when he said few flats are available.

"Sinhagad road is not cheap anymore. Our neighbor's, Darode Jog's rate is 3,500." he told me very proudly.
"Why are you charging less? Is their quality superior than yours?" i asked the site engineer.
"No! Quality is the same but their presentation is better. Wait for a month. Our rates are also going to increase." he said proudly.
"Are you going to improve your presentation or what?" i asked curiously.
"On 26 January, Magarpatta is launching its 200 acres township in Nanded. After that rates are going to go up on Sinhagad road." he told me the secret.
"But why property rates will go up after Magarpatta's launch? Actually, your rates should come down. Who will come to book in your project? Every one will go to Magarpatta. I will be the first one" i told him frankly. I was going to tell him what happened in Baner-Balewadi and Wakad after the launch of the Paranjape Scheme's Blue Ridge.

But the site engineer became a little serious so i said, "Magarpatta is like Reliance Fresh. You know, when Reliance Fresh opens it's store, business of small vegetable stalls goes down"
Suddenly, i saw a bright smile on his face. He said,"That's why the owner of this land stopped growing vegetables and became a builder! You do not have to throw away unsold flats like unsold spinach or tomatoes. Booking may slow down but rates will go up. We do not have to worry about our produce becoming stale. We can hold on!"

I asked him about his future plans. Yes, one day he is planning to become a builder. I told him he is going to become a big builder and came on the Sinhagad road to visit Darode Jog's Crossover County.

You are impressed with the sophistication as you enter in the "Crossover County" project site and when you push the big door of the site office you know you are at a premium project.

I always used to admire Darode Jog for their carefully executed single building projects at a prime locations in Pune. Every project used to look like a well groomed, well educated, well mannered gentleman. But now, this 'Crossover County' looks more glamorous and flamboyant.

Trying to accept the change i gave complements about the site office to a pretty sales girl who welcomed me with a sweet smile. "This is our Darode Sir's dream project!" she told me.

"Good! Mr. Darode's dream is becoming expensive day by day." i said looking at the property rate card. I saw rates 3699, 3799, 3774, 3874, 3899 and more rupees per sq ft but could not find 3,500 anywhere.
"Wasn't the rate 3200 when the project was launched?" i asked in disbelief.
"But that was in August! In few days rates will be going up." she said with a smile.
"Oh no! Don't worry. We will hold them down and will not let them go up!" i said seriously.
"No, our sir increases rates when he feels like increasing! He says this will go up to 5,000 in a month." she confessed.
"Why? Your sir dreams about the project or only about the rate?" I questioned her.
"Our sir says after Magarapatta is launched on Sinhagad road, rates will go above 5,000!" she said.
"But Magarpatta is booking it's last phase and still Maragpatta's rates are less than yours. Today Magarpatta's rate is only 3,500." i said while trying to log on to Magarpatta's website on my mobile.
"No, but it always actually happens when our sir dreams!" she said faithfully.

I called Magarpatta and asked the first person who took the call, "When are you launching your project on Sinhagad road?"
"May be in April! We will post about it on our website!" he said.
"Great! Hope you have not decided to launch it on the 1st of April." i said and rode my bicycle.
I was one of the few persons who were driving as per the prevailing traffic rules on the Sinhagad road.

22 comments:

  1. very interesting read. I live in San Francisco but I am planning to buy a home in Pune and it looks like I need to move fast.

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  2. You may b eamazed with idea of Magarpatta city but at the end what you want as minimum is kind of service and response for your problem. I am living in Magarpatta city and I am frustrated with PMS (Magarapatta Maintenence department). They work exactly like and government office. No one will attend calls from 1 pm to 2 pm. No one will attend concern after 6pm. Even if it takes you to compromise on your office. If you raise your voice, For a simple issue, there will be 10 times, 20 people coming but no one commits any solution. After 6 pm, no one will tell you any one's contact information. I was shocked and thinking if some mishappening happens in Magarpatta city then who is the right person to talk after 6 pm. I see whole lot of design problems, maintenance problems, construction problems in magarpatta city. I wanted to fit my AC but can't because windows are not properly made. Outside people charge more to correct window size by physically removing slabs. PMS is not responding. I can only say, don't get fascinated by big words of magarpatta city marketing team, consider ground realities before you buy one.

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  3. Hello Mr. karandikar, it was very interesting. i wonder whether peopel have buying power. i feel these price quotes are virtual. anyways thank you for your wonderful anaylysis.

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  4. I agree with you, Pankaj. I too am a resident of Jasminium in Magarpatta City, and I find problems of all sorts. There is thoughtless design. e.g. the counter top basin is made to give you a backache, the kitchen and bathroom tiles are the most unaesthetic and dirty, the floor tiles are all unlevelled, sill marbles are low-strength and cracky. The external plaster is worse than railway colonies. Residential projects are very badly managed - there is severe lack of supervision and skill. New buyers must be very cautious. It is better to buy from a builder who values quality. The PMS, I agree, functions just like the government. Very unskilled, ill-managed gang of people.

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  5. I wonder why property prices are so inordinately high in Pune. The ground reality is that Pune has nothing much to offer by way of quality of life, infrastructure, roads, transport, weather, connectivity, security and real estate prices have been artificially hyped up by builders who lure people from outside to invest. Sooner of later the Pune real estate bubble is going to burst like it did in the 1990s. I inderstand property prices in Pune are already going down. Especially in fringe areas like Hadapsar, Sinhagad Road, Pimpri-Chinchwad, Ahmednagar Road, Mundhwa, Undri etc. Just wait and watch.

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  6. I am somewhat agree with Pankaj and Mr. Anonymous. If anyone wanted to buy a flat at Nanded City, at least they will visit Magarpatta city.
    Cyber city buildings are fabulous, nice looking and very attractive. There is no word for Cyber city. When you look towards these giant IT towers from Aditi Garden, you feel that you are not in India but in any European countries.
    The row houses seems to be quite good and the owner felt they are in Kashmir because it is surrounded by greenery, but this is not the case with Residential apartments. You felt like you are not staying in Magarpatta city but in any ill maintained Government colonies.

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  7. I am somewhat agree with Pankaj and Mr. Anonymous. If anyone wanted to buy a flat at Nanded City, at least they will visit Magarpatta city.
    Cyber city buildings are fabulous, nice looking and very attractive. There is no word for Cyber city. When you look towards these giant IT towers from Aditi Garden, you feel that you are not in India but in any European countries.
    The row houses seems to be quite good and the owner felt they are in Kashmir because it is surrounded by greenery, but this is not the case with Residential apartments. You felt like you are not staying in Magarpatta city but in any ill maintained Government colonies.

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  8. Hi,
    I didn't want to be left out and hence booked "something" in the pre-offer for 2750Rs. /sqft. Last year when I visited Pune, I thought these prices are virtual as the builders were increasing the rates by almost Rs 100/sqft/month. I could not believe it. But even though the inflation is so high and bank lending rates are > 13%, still builders are increasing the rates and people are buying!!!! and so did i! I don't know whats going to happen!
    Sam,
    US.

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  9. @Sam,US; "I don't know whats going to happen!" Don't worry! We all are very responsible individuals. We will never stop booking and opt for only ready possession flats. We will go on paying more. We will keep on financing the construction and development cost. We will never expect any returns or dividends from our investment in the project. Builders know that we are very responsible and sacrificing individuals.

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  10. Hi Ravi,

    Interesting read indeed!! I find your views very practical.

    I have been house hunting in Pune since the last 4 weeks for investment purpose and was aghast to see builders / re-sellers asking prices in the range of 2 /3 crores!!!

    Well coming to my search on Darode-Jog Crossover County; as you experienced, a sweet girl showed me the so called "Finished Apartment" (which in their opinion is aptly worded, they don't want to call it a "Sample Flat"; wondering if their marketing consultant has a qualified Doctorate in English language). Just in case I have made your readers a bit anxious.. here's the wit behind it....

    The floor tiles on display are 4x4 vitrified, whereas, in the actual flat, its going to be 2x2 vitrified (mind you, the price gap in these two sizes is as much as 250%; Sanitary ware displayed is "American Standard" (imported, of course), whereas, in reality its going to be one of the Indian ones (well, do we know that the range of Indian made Sanitary wares are available to suit every pocket!). Lastly, not to mention that the wooden window frame was only for display in the apartment, in reality its going to be Granite! While I understand that the modular kitchen, furniture, dried flowers, etc are not a part of the deal and I am also not questioning that, but the above is definitely questionable.

    By now, the lady had a swollen face, I was on her wrong side. She was candid enough to admit that she was aware of the issue and so was the management of Darode-Jog.

    I even informed her that if you are not delivering what is being promised, then the company is in for trouble from persons like me, who will definitely invoke the recent Supreme court ruling on harsh penalty to builders not keeping their promise.

    My question is, how could a builder of their repute do this. I am not sure, how many other specifications shown in the so called "finished apartment" are not delivered.

    My last question is "If I can't trust a Darode-Jog, then which othe builder do I keep my faith in!!!

    Warm Regards.

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  11. "If I can't trust a Darode-Jog, then which other builder do I keep my faith in!!! Thanks Tushar! You are point on!!

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  12. I loved reading this! I came across your blog while looking for Magarpatta City!

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  13. I am currently looking for an apt/flat for my family in Magarpatta City. This is when I came across this interesting article.
    I have been looking at the rates in Pune for the last 1 yr now. I am spell-bound by the rates in all the areas. They are 2 to 3 times compared to the per sq ft rates in the US. My brother has been pushing me to buy a property soon. As per him, the rates will keep increasing and they will never go down in Pune.
    I am positive that rates will go down very soon as they have in the US. Everything that goes up has to come down. When they would come down is a good question! And which builder to trust is the toughest question.
    Any suggestions on good builders would be appreciated.

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  14. Hi,
    I would like book the flat in Nanded city. is it a good time to book there.
    How is the builder...
    does anybody whether they got the required project approval or not

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  15. Hi,

    I am a Mumbai Resident. I live on rent in Mumbai. Owning a house in Mumbai has become a distant dream, thnx to the escalating rates. Last week i happened to visit Pune and the rates offered at Nanded city seemed very appealing (comparing with rates in mumbai)

    Now i wish to book a flat at Nanded city at the rate od 2850/-. will it be wise to do so? I am worried now especailly after reading about Magarpatta's low construction quality etc.

    Really confused, any insight provided will be valueable.

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  16. bol ravee bol tune yeh kyaa kiyaa, logonko jhaansaa deke gool ho gaya......!!!

    Ravee, your silence is the very good proof that you have either cheated us all readers who read and trust your stupid blogs or otherwise, you are a complete fool who thinks himself of being a very genius expert in RE but in reality doesn't know even ABCD of RE.

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  17. Dear Mr. Anonymous, thanks for sparing your time to visit and post a comment! However, can you, please, be specific?

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  18. Mr Anaonymous! I think you wanted a quicker response from Ravi and hence bursted out your frustration on Ravi. But how does Ravi not replying to your post in 12 days make his posts stupid? If his posts were stupid, why did you even bother to spend time and post your initial question in the first place? You should rather analyze your temper a bit. Unlike you, I am posting my real name on this blog. I am Ameet Patil and I live in Chicago. This was my first time on Ravi's blog by the way.

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  19. hi Ravi,
    Nice Blog to keep us updated regarding Pune real estate.
    I am planning to buy a 2BHK resale flat in Magarpatta city. Any views on the construction quality.

    Regards,
    mahesh

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  20. shall i book a flat in nanded city 1 bhk as an investment for my daughter who is 8 yrs now.i stay in nasik.plz do suggest.
    dr sabiha inamdar

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  21. Is anyone having problems with the floor tiles popping up and the skirting tiles falling apart. I too experienced the bureaucracy at the maintenance office. I wonder if md satish magar is aware of this?

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  22. Beg to differ on all the comments which have been made earlier. I stay in Sylvania & can proudly cliam that Magarpatta have set up an excellent example of how a 700 acre township needs to be maintained & catered to.

    Agree PMS is not the best , however they are still trying. Most us Indians are so indisciplined that if any society is left to them they will create a mess of the same. With Magarpatta stronghand even after 10 yrs this place is beautifully maintained & well kept. Plz try other places where u have to pay exhorbitant maintainace charges & still ensure everything is spic & span

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