Ravi Karandeekar's Pune Real Estate Market News Blog: February 2009

Saturday, February 28, 2009

Lavasa isn't a real estate project - Ajit Gulabchand, chairman and managing director of Hindustan Construction Co Ltd (HCC)

Slowdown has hit the realty sector rather hard. Infrastructure projects too have slowed down somewhat. But Ajit Gulabchand, chairman and managing director of Hindustan Construction Co Ltd (HCC), is not worried. The company is going full throttle on its ambitious Lavasa lake city project and has also bid for the Worli-Haji Ali sealink project. In a chat with DNA, Gulabchand elaborates on the reasons behind these moves. Excerpts...

A lot has been said about your Lavasa project. How is it coming along?

We were so encouraged by the sales during the last one year that we have advanced the phase that we were to complete in 2022 to 2015. By 2012, there will be 10,000 students and executives studying there. By then, there will be 1,000 rooms. Phase 1 B and phase II will begin together. What we hoped to complete by 2030, we will complete by 2022.

A lot of people, especially analysts, have misgivings about the project....

It's time to stop calling it a real estate development. I would like to say we are in the business of comprehensive urban development and management in which real estate is just one vertical. This is about creating a whole new hill station town, a whole new urban centre with hospitality and tourism and education at its centre.

It's not a resort town. It is being sold across socio-economic strata. On the one side, we have studio apartments for Rs 10-15 lakh. On the other, villas for Rs 1.5 crore. We also have a lot of affordable housing on rent. There will be 50,000 people living there and 20,000 tourists on any given day. There will be 1,00,000 chawl-like places for people like drivers to stay in. We are going to have star hotels and also Rs 150-a-day dormitories. We are now in the process of discussing a private-public partnership for providing police services in Lavasa.

To read Mr. Gulabchand on property rates, e-governance, progress of works and an initial public offer (IPO) of Lavasa please, visit - Ashish K Tiwari and G Seetharaman:DNA: Money:

What is Nanded City Pune or Blue Ridge Hinjewadi?

Amanora Park Town, Blue Ridge Hinjewadi, Megapolis and Nanded City Pune are integrated townships formed under special township act.

These townships are not as big as Lavasa.

However, these townships are supposed to provide all infrastructure support services, like water, electricity, security, waste management to their citizens. Which Pune Municipal Corporation can't provide.

It means these townships also are not "real estate projects" but "Mini Municipal Corporations" or "City States" without any traditional revenue sources like property tax and octrai or funding from State and Central government!

I think a person who believes that these integrated townships will sustain and prosper without any substantial and assured revenue source must be a follower of some secret spiritual cult which believe that truthful and pure human being can survive for ages without water and food.

If you remove the corrupt political system (PMC) and surrender to the holy businessman (Aniruddha Deshpande or Ajit Gulabchand!) you can enjoy high standard of living and may be (digital) Nirvana!

Are you one of them? Please, tell me why you don't believe in the Municipal, State or Central Government's capacity to provide you better infrastructure? When in reality, today all private companies, all over the world, are begging their governments to bail out! Please, share you thoughts in the comments. (Comments Policy),

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Amit Enterprises launches Astonia at Balewadi, 2 bhk flat of 900 sq.ft. in 25 lakh, including everything!

Property rate Rs. 2,300 per sq.ft.!

On the adjoining plot of Amit's Sapphire Park, where property rate is Rs.3,600 per sq.ft., near MITCON at Balewadi, Amit Enterprises has opened the bookings of Amit's Astonia!

As of now, there is no information of Astoni on Amit enterprises' website (www.amitenterprises.com) but there was an ad in the local paper and booking has started at site.

Only 2 bhk flats!

At Amit's Astonia at Balewadi, in 4 buildings all 88 flats are of 2 bhk. Area is approximately 900 sq.ft. In Astonia's ad, Amit claims that vitrified flooring, piped gas connection and specious multi-purpose community hall are the special features of the project.

Property rate is approx which i came to know when i called Amit. The 25 lakh is the total budget which includes parking, stamp duty - registration charges.

Call Amit's Astonia:

To know more about Amit's Astonia, you can call:
+91 99229 98817
+91 99229 98819
020 6410 6010
email:mktg@amitenterprises.com

What is your take on Amit Asotnia's property rate?

When Amit Enterprises, which has launched Amit's Bloomfield in the village of Ambegaon at the most irrational property rate of Rs.3,200 per sq.ft., launches Astonia, in Pune Municipal Corporation limits at Balewadi, near Hinjewadi at Rs. 2,300 per sq.ft. only confirms that Pune real estate market has reached it's bottom.

Now, even Amit enterprises may claim that rate doesn't depend only on the location. Specifications and other features play important role in deciding the property rate. But truth is rationalization of the property rate has become very essential to survive. Not only for small projects. But even for big townships. Like Amit's Bloomfield at Ambegaon. Even for an integrated townships like Paranjape Schemes' Blue Ridge at Hinjewadi!

What is your take on the rock bottom property rates? Can you discuss the rationalization of property price with your builder? Unlike Santosh Kumar, can you talk to your builder without any fear? Please, share your views in the comments! (Comments Policy),

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Paranjape Schemes' Forest Trails - beautiful bungalow in a world class township at a price that would fetch you small flat in Mumbai!

Vile Parle to Chandani Chowk:

"It seems Mr. Paranjape thinks that Pune lies on outskirts of California. I would rather buy a bungalow at San Francisco at this price rather than at Bhugaon!," Parimal said on my Ravi Karandeekar's Pune Real Estate Blog.

Mr. Anonymous said, "I lives in Japan & in this amount any body can purchase a good house in a place which is just 20 mins local train distance from Tokyo Station with infrastructure in the best in the world."

What about "Aamchi Mumbai" and Mumabi Pune Expressway? All my dear readers in Mumbai, (My maximum readers are in Pune, Mumbai, San Francisco), what is your take on driving down in 2 hours to your own weekend bungalow in Forest Trails at Bhugaon near Chandani Chowk, Pune, developed by Paranjape of Vile Parle? Please, share your views in the comments. (Comments Policy), You also have an option of getting in touch with Vinay Deshpande! How about it?

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Magicbricks Property Bazaar 2009 - property at rates that match your wallet

At Pride Hotel - 28Th February and 1ST March '09 - 10.30 am to 7pm:

Walk in to find your dream home!

magicbricks.com, India's number one property site, brings to you "an exclusive" property exhibition with 'a promise' to offer special discounts on spot booking!

Please keep your cheque book with you!

I am eager to know about special discounts and spot bookings at magicbricks.com property exhibition. Please, share your shopping experience in the comments. (Comments Policy),

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Friday, February 27, 2009

Relief for the real estate sector - construction cost to come down

Rs 30,000 cr package to fire up the economy:

# 4% central excise duty cut will continue till March 31
# Excise duty, which was 10%, brought down to 8%
# Service tax reduced to 10% from 12%
# Custom duty exemption on naphtha import extended to March 31

Impact:

# Cement prices will drop by Rs 4-5 per bag
# Steel prices will come down by Rs 500-600/ ton

Benefits:

“It is a welcome relief for the real estate sector, where today the construction cost is almost more than 60% of the total sale price or even 70 % in some cases. So, a reduction of 2%o on service tax will at least lead to a 1-1 .5% reduction in overall construction costs,” Ramesha Sanka, CFO, DLF.
To read more, please, visit - UTVi

Relief for whom? For the builder or for the property buyer?

# Pre-paid mobile users having Rs 350 recharge coupon, will get additional talk time of Rs 10
# Post-paid users will get 2% reduction in monthly bills
# Air ticket for all business and first class could be cheaper by Rs 900-Rs 8000
# Motor car insurance and mediclaim will come down by 2%

But what about real estate rates? Do you think your builder will pass on the benefits to you? Please, share your views in the comments. (Comments Policy),

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Thursday, February 26, 2009

SBI’s low loan rates no threat to HDFC - Edelweiss Securities

SBI: 9.92% whereas HDFC: 9.97%

State Bank of India’s special concessional home loan rate of eight per cent may not prove a real threat to housing loan market leader HDFC, which still offers borrowers a lower overall interest cost, analysts believe.

Analysing the cost benefits offered by the public sector lender’s special home loan rate for the borrowers and the competition it poses to HDFC, equity analysts at brokerage firm Edelweiss Securities in a report said that the scheme would not be “a material threat to HDFC.”

While short-term interest savings offered by SBI is “more or less offset by HDFC’s competitive edge” on factors like ease and quality of service and process time, the average interest rate for the full tenure of the loan also works out to be lower in case of HDFC, they noted.

Under SBI’s special scheme, the rate would be fixed at 8% for the first year, while it would increase to 10.25% from the second year for loans up to Rs30 lakh and to 10.75% for loans bigger than Rs30 lakh.

This would give an average rate of 9.92% for loans up to Rs30 lakh with a repayment period of 20 years, as against HDFC’s prevailing lending rate of 9.97% for a similar loan, Edelweiss said.

When contacted by PTI, SBI officials did not respond to the queries on issues raised in the report.
livemint.com

HDFC or SBI?

Short-term interest savings or competitive edge? SBI or HDFC? What you value most? Please, share your views in the comments. (Comments Policy),

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Property rates to go down by 50%

NRI realty investments drop by over 50%

The NRI season is now at its fag end. Despite undertaking tours to the US, the UK and Middle East and doling out freebies and discounts, realtors have been unable to catch the attention of this cash-rich community.

At a time when the domestic demand in micro-markets in Tier-I, II and III cities began to slump in the third quarter of this financial year, the developers were hopeful that the demand from the NRIs will pep up the sentiments in the realty markets.

Job insecurity:

However, the global slowdown and the resulting slump froze the bullish sentiments among NRIs. “Though a far-from-spectacular number of transactions have indeed taken place this season, generalised job insecurity and a desire to conserve available cash among IT employees abroad has curbed investment demand for high-end properties, Mr Sanjay Dutt, CEO - business, Jones Lang LaSalle Meghraj (JLLM), a global real-estate consultancy firm, said adding that the response was “significantly muted” from the NRI community this season.
To read more, please, visit - The Economic Times

Integration of Indian real estate economy with US economy:

Indian economy may not be that much integrated with US economy and strong Indian consumer base may support the growth of Indian economy but when it comes to Indian real estate, in the forms of foreign direct investment, real estate investment funds and individual property buyers, integration is complete and deep.

Don't you think that drop in the NRI investment is going to grow and property prices are going to go down, may be by 50%, in the next few months? Please, share your views in the comments. (Comments Policy)

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Wednesday, February 25, 2009

Not the right time to call!

A Number of Bangalore’s real estate tycoons are scurrying for cover after extortion threats from a former associate of underworld don Chhota Rajan. This is the first time prominent businessmen in India’s tech capital have been targeted by the organized crime.

The city’s realty tycoons are the helm of what was once one of the most lucrative property development operations in India, raking in margins as high as 40-45%. But the timing of the extortion calls — coming amid an unprecedented business slowdown — has perplexed them.
To read more, please, visit - J Padmapriya & Boby Kurian-The Economic Times

Can you call your builder?

To complement, to discuss about reducing property rate, to complain about delayed possession, or for that matter for anything, can you call your builder? Or any responsible person? Share you experiences in the comments, please. (Comments Policy)

Feel free to call me: anytime!

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Tuesday, February 24, 2009

HDFC to charge borrowers for switching bank

Switching Home Loan from HDFC to SBI:

Mortgage giant HDFC has made it expensive for home borrowers choosing to switch over to another bank. The institution has started charging borrowers up to 3% of the outstanding loan if they decide to prepay their loans by borrowing from another lender.

Direct selling agents in the home loan market believe the move is aimed at discouraging HDFC’s existing borrowers from switching over to State Bank of India (SBI), which has stirred the market with a special scheme that offers home loans at 8% for the first year.

Though the SBI loan is loaded with front-end charges like mortgage registration, the 8% interest, which is significantly lower than other offers, has sparked off a slew of enquiries among new and existing borrowers. Indeed, the special scheme has triggered a battle for market share between HDFC and SBI. Recently, HDFC chairman Deepak Parekh had described the SBI scheme as a “gimmick” in a media interview. Watch Video

Always between 0% and 3%?

HDFC officials, however, played down the development. “Our prepayment charges have always ranged between 0% and 3%, depending on how long the borrower has been with us, where the funding is coming from and what is the interest rate on the loan being prepaid,” said HDFC deputy managing director Renu Karnad. She pointed out that this was similar to the condition that banks lending to HDFC insist on. “In some cases the lenders ask for the difference between the contracted loan rate and market rate,” she said.

Hidden Charges?

Since last year, HDFC is charging around 2% if a borrower prepays the loan within three years of disbursement. HDFC has, however, kept part-prepayment up to 25% of a loan amount exempt from such charges. Although the HDFC loan document does not mention the pre-payment charges, the institution, like most other lenders, has been charging around 2% for loans that are prepaid by obtaining refinance from other lenders.

ICICI Bank:

An ICICI Bank spokesperson said the bank charges 2% for prepayment irrespective of whether it is refinanced or foreclosed by the borrower. Together with service tax, the prepayment cost goes up to 2.25%.

Discourage the customers:

HDFC officials said all attempts are made to ensure that customers stay back. If the institution comes out with a scheme offering lower rates only for new customers, all floating rate borrowers who are paying higher rates are allowed to switch to the better rates by paying a 0.5% charge.

"SBI, interest rate from 2nd year?"

However, the new rate offered by SBI is not offered to the bank’s existing borrowers. Under the special scheme, the interest rate applicable from the second year are in line with market rates. If the borrower is eligible for the special scheme formulated by the Indian Banks’ Association, the rates for that scheme will apply.
-The Economic Times

What is your take on switching home loan from HDFC to SBI?

I am sure, you know home loan jargon well.
You are not in two minds about prepaying your home loan.
Keeping in mind that though slightly lower, HDFC is expecting 20 % growth in 2009-'10, can you, please, share your views in the comments about switching home loan from HDFC to SBI.?
(Comments Policy)

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Get in touch with Vinay Deshpande if you wish to build your own bungalow in Pune

Do it yourself! Join a group and develop your own bungalow!!

On last Friday (20th February '09) morning, when i saw full page ad of Paranjape Schemes' Forest Trails bungalow township at Bhugaon, i called Mr. Vinay Deshpande. Mr. Deshpande is one of us who is very much interested in owning a bungalow in Pune.

Few months ago, at the end of our first call about Forest Trails and other bungalow projects in Pune, Mr. Deshpande has let me save his mobile phone number and had told me to feel free to get in touch with him anytime. Otherwise, when you call me, i make it a point to delete your phone number. Because, as a salesman i am trained to save your cell number and keep on bothering you by calling, "When are you visiting the site?"

I was curious to know Mr. Vinay Deshpande's take on owning a bungalow in the present circumstances. I haven't met Mr. Deshpande and have had only one conversation with him but for me he is just like an unofficial ambassador of all those IT professionals working in US and NRIs who are interested in R2I, return to India. He has that typical approach towards Pune real estate market and the state of Indian economy which i have found out in all conversations with my U.S. readers who call me regularly.

"Now, along with my couple of friends in US, i am exploring the possibility of trying to develop a small bungalow scheme on my own. It would be better than going for any builder. Otherwise, i am happy to rent till i am in Pune," said Mr. Deshpande.

"Great idea! Can i blog this?" i asked him. "Sure, give my email id vinaydeshpande@gmail.com As it is, i work at night and have quite a free time in a day. Ravi, I believe that building a bungalow at a reasonable distance from Nalstop Chowk on Karve road in Pune, without crossing 1 corer price tag, is quite possible!" said Mr. Deshpande. I said "Jai ho!" and put the phone down.

What is your take on forming your own housing group?

I blog about this type of initiative, groups like insignia and ITWAP, or individuals like Ashish Yadav and Vinay Deshpande, because i believe in them. Growth of Pune real estate market has happened because of these enterprising people.

Paranjape Schemes's townships, Blue Ridge Hinjewadi and Forest Trails Bhugaon, may be the first effort done by any professional builder in the recent times. I am not considering Kumar Properties and Avinash Bhosale Groups's Megapolis because they had followed MIDC's plan. Otherwise, Pune builders had followed these group as city went on expanding.

Without any support from the government, like special township act or without any foreign direct investment these people had provided housing to many families. Take any corner of the city, today these societies, Maji Sainik Vasahat on Paud road or Empress Garden View Society at Sopan Baug on Hadapsar road, have become a land marks.

What do you feel about these initiatives? Would you like to join them or do you prefer to wait for the builders to lower the property rates? Do you believe in finding housing solutions on your own or expect government and builders realize their social responsibility to provide housing for you? Please, share your views in the comments. (Comments Policy)

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Saturday, February 21, 2009

Paranjape Schemes opens booking of first 200 bungalows in Forest Trails - 140 acre township at Bhugaon, 10 -15 minutes away from Kothrud and Hinjewadi

For KitKat, you need a break
but what you need for your own bungalow?

Everybody wish to live in a bungalow. Right? But not here. In Paranjape Schemes' Forest Trails at Bhugaon, you need a solid reason to own a bungalow! You must have some unfulfilled wish which you could not fulfill in the flat! And a little budget. Say Rs.1.25 crore (252368 US$) and more! .

Welcome to Forest Trails on 21 and 22 February!

"Ravi, recession is over!," one of my reader send me sms. "Yes, your Obama only talks. Our Shashank Paranjape believes in action," i replied. Yes, Mr. Paranjape has released full page ad in today's Sakal and invited you all to visit Forest Trails on 21ST and 22ND February. He says out of 11 different design options available in Forest Trails, 6 sample bungalows are ready. 3 bungalows are even fully furnished for your viewing. Plus there are lot of surprises for your entertainment. Do come with your family and friends.

Current gloom and doom not justified!

Suresh Tendulkar, chairman of the Economic Advisory Council to the Prime Minister says,

"The current crisis is one of confidence. And I have been arguing that this crisis of confidence is an imported one at the psychological level than really based on objective circumstances in the economy."

To revive the economy, Mr. Tendulkar feels, we have to turn around the confidence. Mr. Shashank Paranjape has exactly done that. He must get Padma Shri. Please, have a look at these bungalows, i am sure, you will agree with me!

A type bungalow:

B type bungalow:

C type bungalow:

D type bungalow:

E type bungalow:

F type bungalow:

G type bungalow:

H type bungalow:

I type bungalow:

J type bungalow:

K type bungalow:

Kiss your maid goodbye!

On your way back from Paranjape Schemes' Forest Trails, please, confess your spouse that you are going to fulfill one more wish. You are going to kiss your maid goodbye.

I am sure, your spouse would be on the cloud nine. Engrossed in fantasizing about a bungalow, she will say "why good bye?, in fact we should have more maids to kiss...to work"

Please, do not disturb her. This is not the time to talk about MSRS and how even a ten year-old can build a robot! Or calculate exact distance between Mulshi and Swat Vally.

It's time to think about Mercedes Benz's special offer.

This is the spirit of new India. Isn't it? What say you? Tell me in the comments, please. (Comments Policy)

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Wednesday, February 18, 2009

Correction in real estate is bound to come - Deepak Parekh, Chairman, HDFC

"Where flats are more expensive, the drop will be sharper than where the flats are cheaper...
correction is bound to come,"
HDFC Chairman Deepak Parekh told reporters!

Really?.. Amazing!..What about home loan interest rates, any cuts, corrections, Mr. Parekh?

"If..if the availability of money...if our cost of fund comes down,......we will certainly reduce rates," Mr. Parekh!

Mr. Deepak Parekh, now you can not make this statement "Correction in real estate is bound to come" more than ones in a year..

Rajkumar Barjatya of Rajshri films, producers of Maine Pyar Kiya, Hum Aapke Hain Koun..!, Hum Saath-Saath Hain, Main Prem Ki Diwani Hoon, has taken the rights of this sentence.

Rajshri has found out why "Vivah" was not a big hit. Now "Correction in real estate is bound to come.." is the title of their upcoming film.

Don't you think Chairpersons of HDFC, ICICI, SBI are playing to the gallery?

Despite the economic slow down profits of these banks have gone up substantially. These banks didn't pass on the benefits of stimulus packages to their borrowers.

Still just to grab the front page these people take every chance to talk about real estate rate cuts. These people bash builder as if he is some "bad man." Do you think that a boss of the bank is a hero of the Hindi film who cares for the common man? Please, share your views in the comments. (Comments Policy),

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Sunday, February 15, 2009

What should be the rational property rate of Blue Ridge Hinjewadi?

Paranjape Schemes wants to know your "rate expectation"!

Can you help Rajesh, who wants to book a 3 bhk flat in Blue Ridge? Please!

I could have send and archive reply to his e mail like i usually do but i was impressed with the fact that Blue Ridge is asking the property buyer about his expectations!

If you had read my post "Do you fear your builder?", you can understand why i was so much impressed.

Read what Rajesh writes:

Actually, last year, I had a very strong desire to buy a residential property in Pune and was interested in the Blue Ridge Project. I made a short visit to Pune last June and visited their site and was quite satisfied by their construction quality. I was actually planing to book a 3BHK property in the phase 2 of their project which came up during Diwali time but found their asking price too expensive. Now I have received a mail from the builder asking my interest and my rate expectation. Could you advise what would be the fair value in Blue Ridge Hinjewadi? The reason for my interest in Blue Ridge is (1) Paranjpe Builders is reputed builder (2) I work in IT and may settle in Pune in the next 3-4 years.

What would be the fair value of Blue Ridge Hinjewadi?

How i look at property rates?

For me it is not easy to answer this. Because I am not a critic or an activist fighting against the greedy builder lobby. I am real estate salesman who blogs to help the property buyers to book a flat in Pune real estate market and i announce it before i open my mouth.

I always try for the win win solutions. Because, the basic law of the real estate is to sell at a maximum possible rate. (Even you try to get a maximum rate when you sell your old flat. Right?) At the same time, rate increase should motivate the property buyer to book!

Remember the most frequently used sentences to motivate the buyer to book immediately? "Rates can go up any moment!" "My boss can call anytime!" "This is a current rate. I don't know about tomorrow!"

Why Blue Ridge was the best buy?

But in last couple of years, rate increase has gone out of control. Instead of motivating, property rates started discouraging property buyers from booking.

Property rates in Pune reached to such a level where very few buyers can really afford.

Plus, if you read the comments on my old blogs, you will find that the property buyers, who can afford, were totally unhappy with the infrastructure development of Baner - Balewadi, Wakad, Rahatani and Pimple Saudagar.

Add to it, the poorly planned projects by the builders with no or bad track record who launched the projects before completing the legal and corporation formalities.

Exactly, at this point, Paranjape Schemes launched Blue Ridge, an integrated township of 138 acres which offered international life style - better infrastructure and long list of amenities - close to your work place in the 1st phase of Hinjewadi at the property rate of Rs. 3,200 and rest is the history...1 flat booked at every 84 seconds!

This could happen because at that point property rate in Aundh annex area was around Rs. 2,600 per sq.ft. where as at Baner it was around Rs. 3,000. Means though being located at an unusual but not unfamiliar location of Hinjewadi, Blue Ridge's pricing was competitive as well as attractive.

Of course, at Blue Ridge, like other projects launched at that time, formalities were not complete, sample flat and site office was not ready but the track record and reputation of the builder - Paranjape Schemes - was exceptionally good. Which motivated property buyers to book at an unbelievable property rate of Rs. 3,200 per sq.ft.

Pre Launch Property Rate of Blue Ridge:

However, at Paranjape Schemes' office couple of weeks before the project was launched officially, pre-launch booking of Blue Ridge was happening at the property rate of Rs. 2,700 per sq. ft.

Basic Property Rate According to Paranjape Schemes:

Considering that the American Dream is over and henceforth we can't use Uncle Sam's credit card to fuel our GDP growth, we should be responsible and realistic. I think, we should accept Paranjape Schemes' basic pre- launch property rate of Rs. 2,700 per sq.ft., not only for the 2nd phase but for the bookings of the 1st phase too.

Ramesh T Jogani's advice:

Besides the property rate, i am sure, Paranjape Schemes' would be happy to follow Mr. Ramesh T. Jogani who is their financial advisor and one of the most respected real estate marketing professional in India.

As per Mr. Jogani's suggestion, on their own, Blue Ridge Hinjewadi will cancel covered car parking charges of Rs. 1,50,000 and floor rise of Rs. 20 per floor for 8Th to 20Th floor and bring down the premium rate, Rs.3,800 per sq.ft., applicable for 21st to 25Th floor to Rs.3,200 per sq.ft.

However, you can't expect Paranjape Schemes' to reduce the infrastructure charges of Rs. 1,00,000 because they are going to provide you infrastructure services like water, electricity, waste management, security and all.

What about maintenance and the sustainability?

For sure, sustainability of Blue Ridge is a big issue! Till now, it is not clear to me how this township is going to sustain? Because SEZ is not a part of Blue Ridge Township and hotel or mall and multiplex may not generate enough revenue to make this township sustainable. Every property buyer should visit DSK Vishwa to understand the importance of sustainability.

Be realistic and reasonable:

You can't expect to get the property rate of Rs.2,700 without making few changes in the original plan of the township. For example 2 level under ground car parking, few amenities, open space may be canceled. In fact more than making few changes, Paranjape Schemes and Arc. Aniruddha Vaidya and Associates must look at the planning of the entire township in the new light and rework on it.

Globalization, Indian growth story, fastest growing economy, emerging markets and all is over, gone, finish. World is in "deep recession". India may go into deflation. Whenever we will come out of it, world would be different. "Buy American" is just the beginning.

Point is nobody dreams of becoming a world citizen anymore. But citizen of Paranjape Schemes? Any time!

What is your take on the rational rate of Blue Ridge Hinjewadi?

Dear Rajesh, according to me Rs.2,700 per sq.ft. + 1 lakh infrastructure Charges + Stamp Duty @ 2% (approx) + Registration fees 31,000 is the right price for Blue Ridge at Hinjewadi.

Which means that total cost of C type 3 bhk flat of 1730 sq.ft. would be Rs.48 lakh (approx) and 2 bhk flat of 1335 sq.ft. would be Rs.37,35,500. Rajesh, this pricing will make Blue Ridge attractive and safe investment destination for you.

This is my suggestion to Rajesh. What would you like to suggest? What is the rational property rate of Blue Ridge according to you? Please, quote your rate and your reasoning in the comments (Comments Policy), forward this blog post to your friends - ask their opinion, post this on your company intra net and help Rajesh to book a 3 bhk flat at Blue Ridge. Thanks!

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Budget must address slowdown

Rohit Gera, Director, Gera Developments:

"This is a time when all parties need to come together to approve any stimulus that an interim budget offers.

Real estate and construction is now accepted as an engine that can power growth of the economy. It is essential that lower inflation leads to lower interest rates, to increase affordability for home buyers.

The budget ought to have incentives for first-time home buyers and those renting their homes.

It is also important that the budget focuses on an improved sense of job security for the employees of industries that are most affected by the current global crisis."

Aniruddha Deshpande, M. D., City Corporation Ltd:

"In today's situation the budget should help arrest the recessionary tendencies, if not trigger a double digit growth rate," Deshpande said a tax break to individuals to spur spending, further relaxation of credit to industry and small and medium industries and continuation of the rural employment scheme could be the government's priorities.

One more dose of stimulus across the economy, especially for infrastructure, housing and export sector is needed, Deshpande added.
To read more, please, visit - Dileep Athavale-The Times of India

What will give you "an improved sense of job security"?

Now, you can't say that Pune builders don't care for you. See, Mr. Rohit Gera, Gera Developments, cares for your job. Mr. Aniruddha Deshpande, Amanora Park Town, wants you to shop!

Can you tell me what government should do to give you "an improved sense of job security"? What will you give in return? Votes? Please, confirm in the comments. (Comments Policy)

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Emaar MGF may turn out to be the first major beneficiary of a government bailout package in Indian real estate sector!

Inauguration of Indian Bailout Games:

Cash-strapped realty major Emaar MGF may turn out to be the first major beneficiary of a government package in the real estate sector, thanks to its partnership with Delhi Development Authority (DDA) for the 2010 Commonwealth Games village project in east Delhi.

The government had already facilitated a nine-month deferment of its Rs 50-crore instalment to State Bank of India (SBI), and has now further asked DDA to prepare a report on buying out flats (starting at Rs 1.7 crore!) at a negotiated price (current property rate: Rs 12,750 and Rs 15,000 per sq ft.!), a government official told SundayET.

Next? DLF or Unitech?

In fact, Emaar MGF could turn out to be the lone beneficiary in a downturn where all major real estate companies, including DLF and Unitech, are affected and witnessing a sharp erosion of their bottom lines.

The government has so far refused to give any concession to the real estate sector and is asking for a price correction.
To read more, please, visit - Neha Dewan & Shantanu Nandan Sharma -The Economic Times

What is your take on the Indian Government's refusal and asking for a price correction?

I didn't like Indian Government's attitude! This is not fair. Principal real estate company should be more considerate towards smaller real estate companies operating under it's umbrella. Don't you think so? Please, share your views in the comments. (Comments Policy)

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Jones Lang LaSalle Meghraj expects Rs. 1,800-2,000 per sq. ft. as the bare minimum pricing level for affordable housing in the current market

Real estate market in for a sea change:

Price corrections are more pronounced in new launches than existing projects, which are mostly sold to end-users/investors and hence are cost covered, says Anuj Puri, Chairman, Jones Lang LaSalle Meghraj (JLLM), India.

In a recent study conducted by JLLM, he has stated that the industry focus has shifted towards affordable housing and the margins are becoming thin on account of the high cost of existing land inventory (acquired during 2006-08) and the current cost of construction. JLLM expects Rs. 1,800-2,000 per sq. ft. as the bare minimum pricing level in the current market.
To read more, please, visit - Shanthi Kannan - The Hindu

What is your take on affordable housing?

You may have noticed that i have not written much about affordable housing projects in Pune real estate market. Except small posts about launching of Gera's Park View 1 at Kharadi and Sara City at Chakan.

First reason is most of these projects are just an announcements which are not worth considering in the present uncertain economic conditions. Project should have obtained all necessary sanctions - approvals and construction should have started on the site are my minimum expectation from the newly launched affordable housing projects.

Second reason is when i look at the planing and the features, i wonder exactly for whom these projects are planned? I do not find they are suitable for my readers!

Please, correct me if i am wrong and in the comments (Comments Policy), please, tell me your opinion about the recently launched affordable housing projects in Pune.

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Friday, February 13, 2009

Do you fear your builder?

Santosh Kumar is afraid to talk to his builder.

He fears that builder will get angry with him if he asks the builder to reconsider the booking rate of his flat.

Santosh Kumar prefers to cancel his booking and loose around 2 lakh rupees than "annoying builder" by asking for reducing the property price.

Or he may take a risk of paying installments for 2 more years, get the possession of his flat, sell it off and sit down to calculate how much he has lost because of his wrong decision to book a flat at Ambegaon!

"You are not going to lose because of the wrong decision. You are going to lose because not talking to your builder. So talk!" I told Santosh Kumar.

"No. I do not want to annoy the builder till the possession." said Santosh Kumar.

We all are afraid of builders!

I admire Rohan Builders' "Price Protection Scheme" for this particular reason. They have taken care of this "fear factor".

You can criticize it as a marketing gimmick. You can prove how property rates of Rohan Mithila and Rohan Leher are still on the higher side.

But you have to give credit to Rohan Builders for taking the step which property buyer would not have dared to take.

Right? We all are afraid of builders!

Real Estate is all about imagination, expectation and speculation!

I tried to remind Santosh Kumar that when he booked his flat at the launching stage, he believed in the builder's imagination. He paid for that imaginary picture because he felt it's worth would be that much after the construction is complete.

Santosh Kumar expected that his builder, trusted by thousands of families for more than a decade, will develop the project as per the picture he had painted and full fill his dream.

After the project is complete the price of his flat will increase more than the imaginative value Santosh Kumar has paid for. And over the years, the value of his flat will keep on increasing because appreciation is the fundamental feature of the property.

The construction of Santosh Kumar's project is going on exactly as per schedule and as per plan. At this point of time, nothing has changed, except one change. Santosh Kumar has not only second thoughts and doubts but he has completely stopped believing in the imaginary picture he had paid for!

Truth is, though the builders try to relate the property rate to the location (cost of land), specification, amenities and the construction quality while convincing you to believe in their imagination and pay the price as per their expectations, builders know that property rate is not just land cost + construction cost + profit. There is one more factor. Which you add to the equation. Your perceived value!

For a builder property rate = land cost + construction cost + profit + perceived value!

When there is a boom in the market property buyers add more perceived value to the equation and property rates keep on increasing. When the property buyer realizes that property rate is increasing, he perceives more value and takes fast action - 1st phase booked on the day of launch - which fuels the boom in the market.

Point is builders are well aware about your contribution and it's effect on their profits. When there is a change in your perceived value, they treat is as "correction" and builders are ready to deal with it. Some builders, like Rohan Builders, take initiative. Some reduce property rate by 100 - 200 rupees and see how you respond. But every builder is ready to talk!

What is your take on the cancellation and correction?

Builders know that it is better to avoid cancellations in this market because getting new bookings who will be ready to pay as much as the old ones is difficult. Delay in the construction means loss in the profit. But builders face one problem!

Builders not only in Pune but all over the country, do not know how to talk! When it comes to talking they appoint someone like an advocate, smart land broker or a dynamic salesperson. For a fact in Pune, except few big names, builders do not have trained and experienced staff to talk to the intelligent and educated property buyers like you!

So, you have to remove the fear out of your mind and take an initiative to talk about price reduction. But how to remove the fear of your builder? By doing exactly what you fear most. By starting the conversation!

What is your take on the reducing the property rate by talking to your builder? Can you do it? Or will you prefer to cancel your booking and blame the bloody greedy builder?

Yesterday, property buyers were not booking because builders were not reducing the price and builders were avoiding reducing the property rates because they were not sure about the booking.

Today, this has turned into builders are stalling projects because there are no buyers. Buyers are not booking because they fear about the completion of project.

This is not only happening in real estate but in all sectors of the economy. To come out of this deflation or the recession as early as we can, don't you think that RBI and finance minister can only make changes in the policy but the action has to be taken by us, by the buyers and the manufactures? Please, share your views in the comments. (Comments Policy)

Fear not. No need to be 'Mr. Anonymous.' Let the world know "SezWho"!

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Monday, February 9, 2009

Convince the builder to waive off the floor rise, get free parking & amenities - Ramesh Jogani, MD, Indiareit Fund Advisors of Blue Ridge Hinjewadi

So we should buy now or not??..confused article:

I had a great time reading Tinesh Bhasin's article Does it make sense to buy a house now? and interesting, insightful discussion on rediff.com

joydip bhattacharya says that the article is confusing and don't give answer to the question "Should we buy now or not?" According to Harshavardhan NM it's Flip flop article and "author is not sure about whether "to buy the property or wait?"

For me, there was no 'confusions'. Because i was not looking for the answer. For me, "To buy or to wait" is not a question at all. As a real estate salesman, i know that the home buyer who actually books a flat, always follows his own personal and private time table. He looks 'inside' for the answers. He takes into account the market conditions but the timing is always his. This blog is for him. Where i share useful and interesting info about buying home. For example Mr. Ramesh Jogani's point.

A good opportunity to get the best deal:

However, if you need to buy and have already found a house that fits your budget, this could be a good opportunity to get the best deal. For instance, you can convince the builder to waive off the floor rise, get free parking and other amenities. "All these will add up to much bigger discount," says Ramesh T Jogani, managing director, Indiareit Fund Advisors, a real estate fund.

I liked this point because Ramesh T Jogani plays important role in Flagship Infrastructure Pvt. Ltd., promoters of Blue Ridge Hinjewadi. Besides, newly reduced property rate of Rs. 3,500 per sq.ft. if you could 'convince the builder as Mr. Jogani suggests' you may be able to get the 'launching rate' of Blue Ridge Hinjewadi!

I think one should follow Mr. Ramesh Jogani's advice while negotiating the property rate at any project. With one small change.

Generally, when you visit the site office, salesman's first question is "What is your requirement? 2 bhk or 3 bhk?" Tell him what you are looking for but don't ask the property rate or start negotiations at this point of the meeting.

First, finalized the flat number. Tell him to keep it on hold and give you some time to consult your spouse, your astrologer and your neighbor's wife.

After second or third meeting, when the salesman is sure about your intention to book the chosen flat, start the property rate negotiations. At this point, the salesman is prepared to offer his lowest possible rate. But he will offer it only when you open your cheque book but hesitate to take out your pen to write the the cheque.

Keeping the cheque book open, you refuse to accept his pen because you are waiting for the lowest rate and not for the pen. When he offers his last best price, you take out your pen, ask for the piece of paper and instead of asking for the free parking and other things, multiply saleable area by the negotiated property rate and give your offer.

Now, it becomes builder's job to convince you to pay for the parking, floor rise, MSEB and the amenities. Ask any salesman, it's always difficult to convincing the property buyer to pay for these charges. So generally, he tries to avoid talking about these charges and focuses on discussing any property buyer's favorite topic, the property rate. You revers the game by playing his cards.

However, do not expect him to give up and accept your offer in this meeting. Salesman will tell you that he has to talk to his management about your offer. With a serious face, appreciate his professionalism and offer to give him a cheque of the booking amount to convince his higher authorities about your commitment. Certainly, the salesman will not accept your cheque because now, he is sure about your booking but not sure about his boss.

If you do this skillfully, may be in the next meeting, while accepting your offer, builder will convince himself whichever way he finds it comfortable for him and he will pat his back for 'getting' your booking!

Point is, when it comes to "convincing the builder," you have to accept that only he can convince himself. You can't! Even if you are from Infosys and your group has 100 members who are going to book with you!

You can create only a favorable condition and inspire (means compel - force) the builder to convince himself to accept your offer.

What is your take on the property rate negotiations?

As a real estate salesman, i find it difficult to understand how property rates can come down by not booking and waiting for 6 months or for an year or 2!

I have seen that property rates went up because people kept on paying increased rates. As more they paid, rates increased more. Same way to bring down the rates, property buyers have to negotiate and book at a lower rate.

What do you think? What is your experience of property rate negotiations? Please, share your views in the comments. (Comments Policy)

What is the ideal Price in a city like Pune?

joydip bhattacharya has raised this question. He says:

Can someone tell me what should be ideal price in a city like Pune.....

Not at all a Metro city...
Poor infrastructure compare to city like Chennai,Delhi.
poor Air connection.
very high price
very much dependent on Mumbai for many aspects.....

With my understanding here a 3 BHK flat(around 1450 sqft) should not be

Baner : 28-32 Lacks
Aundh : 28-32 Lacks
NIBM : 25-30 Lacks
Deccan: 40 Lacks
Kothrud: 32-35 Lacks
Kalyani Nagar : 30-32 Lacks....

all of puneites input is requested

I think, you will like Arun Srinivas' answer. He says:

I was surprised to find that prices in Pune were much much higher than that in Blore. Even the rentals are higher in Pune. My estimate is as below:

Baner: 20-22 Lakhs
Aundh: 22-25 Lakhs
NIBM-Kondwa: 20-22 Lakhs
Deccan: 28-32 Lakhs
Kothrud: 22-28 Lakhs
Kalyani Nagar: 22-25 Lakhs

If Baner is 20 -22 Lakhs then Kothrud can't be 22-28 Lakhs. Kothrud should be 40 - 45 Lakh! Why? Because, i stay in Kothrud!

Point is, property buyers' perception plays important role in deciding the property rate of the area. But we give all credit to the builders! What say you? Don't you think we should honor the property buyers too? Please, share your views in the comments. (Comments Policy)

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Sunday, February 8, 2009

Buy now, but be wary - some safety guidelines

1) Buyers should go for property that is got the statutory approvals, where work is in progress — the more advanced stage of completion the better.

2) The buyer has to beware — check the documents thoroughly, see the plan approvals and related paper work are in place, check if the project is progressing and at what stage it is in and most importantly, the reputation and track record of the builder and ability to deliver.

3) Reputed builders now compensate buyers when there is an inordinate delay.

In most cases the developers cannot be blamed for the delay as the system in place is a long and complicated process involving multiple government agencies. The developer can provide the plans and title documents but there are over 15 No-Objection-Certificates that have to be obtained from a range of agencies like traffic police, water supply and drainage, electricity board, airports authority, pollution control boards and the Public Works Department.
To read more, please, visit - R. Balaji -The Hindu Businessline

Beware and be careful but keep on investing in under construction properties!

I can't imagine what will happen if on one fine morning each and every property buyer in Pune decides to buy only "ready possession flat" in a project which has all amenities ready and operational!

If builders are convinced that yes, people are not going to book when the project is launched, i am sure, majority builders will leave Pune real estate market, and will go to Bollywood! In Bollywood, Pune builders will start producing Hindi films where distributors, financiers and now corporates, give advances when you launch your film!

Those who will remain in Pune real estate market, will find it difficult to sell their ready possession flats. Because, there is a vast difference in selling imagination and reality.

We all know this, but never accept that most of the flats do not look as good as their floor plans. Home owner out of "self respect" never tells you exactly what is his opinion about his flat, but keeps on talking, very proudly, about the changes he has made in the original floor plan and the interior he has done!

The real estate investor, who keeps the original floor plan and doesn't make any interior, finds it very difficult to sell his "investments"!

To survive, these unfortunate builders, who have no option but to continue in Pune real estate market as a builder, has to change his basic "theory".

Instead of focusing on the plot size and shape, FSI, corporation laws and premiums, he has to give importance to the needs, tests and aspirations of the home buyers! For that, along with the architects, structural designers, plumbing consultants, electrical consultants and landscape designers; he has to appoint marketing consultants (like me!) who know what home buyers are looking for!

For any businessman, you experience this in every day life, his business is more important than his customer. That's why, you see auto drivers dusting off his rickshaw when he is waiting at the stand , but he will never dust the seat before you get in! Same is with the builders. Forget about considering that home buyers are the center of their business, most of the builders try to avoid meeting their clients! Out of more than 100 builders, i know personally, very few actually talk to their customers, on their own.

Point is, dear Pune home buyer, please, keep on booking when the project is launched or when the project is under construction but never think of buying only ready possession properties. No, oral consent is not enough. You have to take a oath, in writing, in the comments! (Comments Policy)

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Friday, February 6, 2009

Farmers of Kesnand village, Wagholi, sign MoU with City Corporation, promoters of Amanora Park Town, to develop a township of affordable housing

240 acres integrated township of 500 to 1,000 sq. ft. flats in the budget of 12 to 20 lakh!

Jogeshwari Township Project, Kesnand:

Enterprising Farmers, who had opposed tooth and nail a special economic zone of Videocon in a joint venture with Maharashtra Industrial Development Corp (MIDC) a year ago, last week, floated their own company.

About 100 farmers of Kesnand village, near Wagholi (Where is Wagholi?), who set up Jogeshwari Township Project, have entered into an understanding with City Corporation, a real estate company, to develop a township at Kesnand, Pune.

Sambhaji Patil, director of Jogeshwari Township Project and Aniruddha Deshpande, managing director, City Corp, signed the memorandum of understanding (MoU) on Jan 26 at Amanora Park Town in the presence of Union agriculture minister Sharad Pawar and the farmers.

“Under this agreement Jogeshwari will provide 240 acres of land to develop a township at Kesnand, Pune and it will have 25 per cent stake in selling price after the development of the township,” said J K Bhosale, chief operating officer, City Corp

View Larger Map

On the pattern of Amanora Park Town:

Bhosale said the Rs 2,000 crore project would be developed on the pattern of Amanora town for affordable housing. “We will start the construction in October-November 2009 and the first phase would consist of 2,000 houses,” Bhosale said, adding that the first phase would be completed within two years. The 500 sq ft to 1,000 sq ft area houses would have a price tag of Rs 12,00,000 to Rs 20,00,000. At present, City Corp is also developing Amanora Park Town at Hadapsar.

Aniruddha Deshpande, managing director, City Corp, said this affordable housing project would be a success because of meticulous planning and incorporation of new technology in construction. “The project will be developed under Maharashtra government's Integrated Township Policy, 2005, wherein the developer provides all infrastructure like roads, power supply, water, hospital, solid waste management and the project should cover 100 acres of land,” Deshpande added.

Minimum guarantee amount of Rs 1 crore per acre of barren land to the farmers:

Santosh Hargude, director of Jogeshwari Township, said the township construction will be spread over 10,000,000 sq ft and cost an estimated Rs 2,000 crore. “We have worked out a plan wherein the minimum guarantee amount of Rs 1 crore per acre will go to the farmers over the next five years,” Hargude said.

Hargude said in November 2007, Pawar had organised a public rally in Kesnand village and urged the farmers to come together and utilise the land for constructive projects. “His suggestion charged up the farmers and the barren land is being now used for the affordable housing project after screening many proposals,” Hargude said.

The Jogeshwari Township Project was floated in July 2008 and has 11 farmers as directors on its roll.
- Property Pulse

Sharad Pawar for President:

Sharad Pawar is my leader. I am his staunch follower.

In this government he is Union Agriculture Minister but i always wanted Sharad Pawar to become a Prime Minister of India.

Obviously, when NCP decided to project Sharad Pawar as its prime ministerial candidate in the next Lok Sabha elections, i was very happy.

But not anymore. Not, for sure, after reading the news about Jogeshwari Township Project at Kesnand, Wagholi.

Now, i want him to become a President. No! not a president of India. But the President of United States of America. I am 100 per cent sure, American citizens will not only join me and shout "Jai Ho!!" but they will vote "Sharad Pawar for President", in place of Barack Hussein Obama in the next elections.

It may happen that I do not have to wait for the next Presidential elections. Mostly, there will be a mid-term elections in America. Because, very soon American citizens are going to revolt against President Obama and his rebuilding America activities. Because, President Obama is planning to send all American citizens to work. He wants to create jobs and more jobs. He wants them to work on the roads, bridges and what not. Because of his policies Americans are going to suffer a lot.

At that point, 44% Americans (yes, 44% of the readers of my blog are in USA!) will tell rest of the citizens about Sharad Pawar and how he freed citizens of Pune from the hardships of work by opposing SEZ which would have created jobs. They will tell them, how Sharad Pawar is different from Obama. Not only that, he is not skinny or his name in not funny like Obama. But they will talk about his most important achievement. How, in place of jobs, Sharad Pawar gave us 'sweet homes'!

My leader, Sharad Pawar, will not only impress citizens but American Congress too. Congress (not Sonia's Congress but American Congress) will be happy to give up "Buy American" clause, amend the constitution and import the political leader Sharad Pawar from Pune as 45th President of United States of America!

On that day, i would be happy to say "He Ram!"

What is your take on outsourcing political leadership?

We have prospered a lot because of the outsourcing. In steaded of restricting ourselves to only business process outsourcing sector don't you think we should expand our services and add political leadership to the list?

Don't you think that American citizens also need homes like us to peruse the happiness? All work and no play makes life so dull. Isn't it? Please, share in the comments (Comments Policy) your recent freedom from the jobs in the canceled Wagholi SEZ and joy of staying at home in the upcoming township.

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Monday, February 2, 2009

Rohan Builders cuts property rates of Leher and Mithila by Rs. 600 per sq. ft. and 'agrees' to reduce your booking rate in case of future reduction!

Could Rohan Builders' Price Protection Scheme motivate you to book a flat in Rohan Mithila at the reduced property rate of Rs. 3,500 per sq.ft. and in Rohan Leher at Rs. 2,900 per sq.ft.?

Property rates in Pune real estate market are going to go down further!:

With this offer Rohan Builders, most renowned builder in Pune, accepts that property rates in Pune are going to hit the bottom very soon.

But you don't have to wait for that to happen.

There is no need to postpone booking a flat in Rohan Leher and Roahn Mithila.

Because with "Price Protection Scheme", Rohan Builders are adding a clause in your agreement which gives you a guaranty that by default the reduced rate will be applicable to you too!

Just like the reduction of 600 rupees has become applicable to the old property buyers who had booked at Rs. 3,500 per sq.ft. in Rohan Leher and at Rs. 4,150 per sq.ft. in Rohan Mithila; by default, without asking, automatically!

What about the property rate of Rohan Tarang at Wakad?

No! The property rate, Rs. 2, 800 per sq.ft., of Roahn Tarang at Wakad, is not reduced and the "Price Protection Scheme" is not applicable to it. Because Rohan Builders claim that Rohan Tarang is ready for possession (in a couple of months!)!

However, one of the property buyers, who has booked the flat when Rohan Tarang was launched, 3 years ago and going to take a possession, after a delay of almost 1 year, said,"Considering the market, Rs.2,800 is too much. It should be less!!"

When i asked him at what rate he booked, he said, "at Rs. 2,300 per sq.ft."

"Wasn't Rs.2,300 too much at that point of time in Wakad?," i asked him.

He said, "Yes, it was! This only proves that Rohan can easily reduce the property rate of Tarang!"

Why not cut the rate more than offer Property Price Protection?

"When you are expecting property rates to go down further, instead of waiting for that to happen, why not reduce the property rates today itself?," i asked to Mr. Mohan Mehta, marketing manager of Rohan Builders.

"Further reduction at this point of time may affect the quality of the construction. Rohan Builders, you know, never compromise on quality!" Mr. Mehta gave smart answer to my dumb question. "Rate cuts are from our profit margins. We have reduced our profit margins. If our construction cost goes down further, we will, certainly, announce more cuts in the property rates," Mr. Mehta added.

"Go and get your booking rate reduced! Good for you and your builder!," Rohan Builders

For me, Rohan Builders' Price Protection Scheme means, for sure, days of "Pune Builders don't see any cuts in the property rates" or "Pune realty rates won't drop any further" or "Not rock bottom for Pune property buyers" are over!

Rohan Builders also confirms that, now, as a property buyer, it's your fundamental right to demand for a rate cut of your flat if your project is under construction.

In fact, Rohan Builders tells you that, it's your duty to inform your builder that you are ready for the rate cut and you are happy to free him to reduce the rate of his ongoing project, get the enough booking and complete the project as early as he can.

When Rohan Builders thinks that it is essential to reduce the property rates to survive in the current economic conditions, I am sure, most of the builders in Pune will be happy to cut the property rates.

First, because builders in Pune know well that delay means loss in the profit.

Second, though PBAP is an official association of builders in Pune, when it comes to doing business they follow Rohan Builders. For example, it was Rohan Builders who introduced the concept of 3 side open flat when they launched Rohan Garima. It was Rohan Builders who introduced the concepts of "smart homes - digital homes", "eco homes", "plus homes" in Pune. It was Rohan Builders who launched first high value project in Pune - 1 Modibaug. It was Rohan Builders who made "penalty for the delayed possession", a clause in the agreement. Today, every good builder is following Rohan Builders and trying to incorporate these features in their projects!

However, you can understand, Rohan Builders can't tell other builders in Pune to reduce the booking rate of the under construction project. But you can!

Are you going to jump or sit on the fence?

What is your take on Rohan Builders' Price Protection Scheme for Rohan Mithila and Rohan Leher?

Is this type of a protection and home loans at 8% or lower interest rate, enough for you to stop worrying about property rates going down in Pune real estate market and start booking in the projects which are under construction?

Are you happy with this or you expect something more? Please, share your views in the comments. (Comments Policy)

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Saturday, February 28, 2009

A lot has been said about your Lavasa project. How is it coming along?

A lot of people, especially analysts, have misgivings about the project....

Related Stories:

What is Nanded City Pune or Blue Ridge Hinjewadi?

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Property rate Rs. 2,300 per sq.ft.!

Only 2 bhk flats!

Call Amit's Astonia:

What is your take on Amit Asotnia's property rate?

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Vile Parle to Chandani Chowk:

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At Pride Hotel - 28Th February and 1ST March '09 - 10.30 am to 7pm:

Walk in to find your dream home!

Please keep your cheque book with you!

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Friday, February 27, 2009

Rs 30,000 cr package to fire up the economy:

Impact:

Benefits:

Relief for whom? For the builder or for the property buyer?

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Thursday, February 26, 2009

SBI: 9.92% whereas HDFC: 9.97%

Related Stories:

HDFC or SBI?

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NRI realty investments drop by over 50%

Job insecurity:

Integration of Indian real estate economy with US economy:

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Wednesday, February 25, 2009

Can you call your builder?

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Tuesday, February 24, 2009

Switching Home Loan from HDFC to SBI:

Always between 0% and 3%?

Hidden Charges?

ICICI Bank:

Discourage the customers:

"SBI, interest rate from 2nd year?"

What is your take on switching home loan from HDFC to SBI?

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Do it yourself! Join a group and develop your own bungalow!!

What is your take on forming your own housing group?

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Saturday, February 21, 2009

For KitKat, you need a break but what you need for your own bungalow?

Welcome to Forest Trails on 21 and 22 February!

Current gloom and doom not justified!

A type bungalow:

B type bungalow:

C type bungalow:

D type bungalow:

E type bungalow:

F type bungalow:

G type bungalow:

H type bungalow:

I type bungalow:

J type bungalow:

K type bungalow:

Kiss your maid goodbye!

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Wednesday, February 18, 2009

Really?.. Amazing!..What about home loan interest rates, any cuts, corrections, Mr. Parekh?

Don't you think Chairpersons of HDFC, ICICI, SBI are playing to the gallery?

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For KitKat, you need a break
but what you need for your own bungalow?