Tuesday, May 07, 2013

Kohinoor of Pune

Conversation with Mr. Vineet Goyal, Developer of Kohinoor Grandeur at Mukai Chowk, Ravet, PCMC, Pune:


Mr. Vineet Goyal, Director, Kohinoor Group Pune (A Krishnakumar Goyal Enterprise) 1 - Developers of Kohinoor Grandeur, 2 BHK 3 BHK Flats & Shops at Mukai Chowk, Ravet, PCMC, Pune
Mr. Vineet Goyal, Director, Kohinoor Group Pune (A Krishnakumar Goyal Enterprise) - Developers of Kohinoor Grandeur, 2 BHK 3 BHK Flats & Shops at Mukai Chowk, Ravet, PCMC, Pune

On 19th April 2013, Kohinoor Group (www.kohinoorpune.com), A Krishnakumar Goyal Enterprise , launched Kohinoor Grandeur at Mukai Chowk - at the junction of Chinchwad - Ravet - Kiwale Road and Mumbai Bangalore Highway.

Kohinoor Grandeur is 16 story residential cum commercial complex. Out of 4 buildings, 2 are open (up to 10th floor) for booking. Launch property price of a 2 BHK Flat - 623 - 640 Carpet + Dry Terrace + Attached Terrace - is approximately Rs. 57 - 59 Lakh. A 3 BHK Flat - 844 Carpet + Dry Terrace + Attached Terrace - goes for approximately Rs. 73 Lakh.

On the day of launch, there was no website of Kohinoor Grandeur. The brochure didn't have the floor plans. So, the other day, I went to Kohinoor Group's office in ICC Trade Towers on Senapati Bapat Road to collect the floor plans. While I was waiting at the reception, Mr. Vineet Goyal came in. I introduced myself. He invited me in his cabin.

"From the day of launch of Kohinoor Grandeur, I was eager to meet you. But I went on avoiding it. Because I didn't have the guts to accept the reality," I said.

"Am I realistic?," said Mr. Vineet.

"You are the one who launched Nano Homes at Ravet and pulled Pune real estate market out of serious recession!," I said.

"Yes! Nano Homes was the need of the hour!!," said Mr. Vineet.

"And what about Kohinoor Grandeur?," I asked.

"Visibility! Presence of Kohinoor Group at the entrance - the new gateway of Pune - PCMC!!," said Mr. Vineet.

"Announcing what? No entry for those who can't afford to pay 60 lakhs for a 2 BHK Flat! If your budget is less, do not enter in PMC - PCMC?," I said.

"Isn't it a fact?," asked Vineet.

"Yes! A 2 BHK Flat - at Kunal Iconia Mamurdi 50 Lakh - at Celestial City Ravet 54 - 56 Lakh whereas a 3 BHK for 60 - 63!!," I said.

"Look at my launch rate - Rs. 4,608 per sq ft - not even 10 - 15 per cent more than the current market rate at Ravet - Kiwale!," said Mr. Vineet.

"Which will cross 5,000 at any point of time! Is this realistic property rate?," I asked.

"The definition of affordability is changing - 12 Lakh Rupees 1 BHK Flat in Nano Homes - today goes for 30 lakhs - and is considered as affordable! For the new middle class in the metro cities - 50 - 60 lakh rupees 2 BHK Flat is affordable price," said Mr. Vineet.

"Oh! Pune has become a 'metro city' without a metro!," I said.

"Because of the land prices and construction costs. Look at this document - this is tender application for Kohinoor Grandeur - if I construct it in house - my cost of construction is 2,800 per sq ft - now, just imagine - how much L & T will charge me - add to it the land cost - and tell me - is Rs. 4,608 or even 5,000 - unrealistic property price?," asked Mr. Vineet.

"Why are you outsourcing - why not 'in house'?," I asked.

"Labor! My labor works in 1 shift. Whereas, these contracting companies have 3 shifts! So, my responsibility will be - supply of construction materials & quality control," said Mr. Vineet.

"And how will you control the quality?," I asked.

"You know what I did in Nano Homes? I prepared an exhaustive checklist - gave it to each flat holder and told them to check - see, if there is any fault - I can get it done from my subcontractor - his last payment installment is released only after the customer satisfaction report of the entire project!," said Mr. Vineet.

"Property buyers can play a role in quality control - but they have no role in deciding the property prices!," I asked.

"Do you really believe that the property buyers haven't played any role in increasing the property rates? Ek hath se tali nahi bajati hai! Don't you notice that it's not our Pune anymore. New people have come to city - who have different sets of attitudes & values - about life & money. They don't save for tomorrow - they spend today & pay tomorrow. Look at the financial institutions - which make spending easy - when money becomes easy - one finds more ways to make easy money - passive income from real estate investments - who will not like to target these easy money guys?," said Mr. Vineet.

"Means who will bother about those who do not earn much - including an IT professional who is doing a job for 3 - 6 years and earns 30 - 50,000 is not a target customer of a Pune builder," i said.

"IT industry was responsible to start real estate boom in Pune - but, now, only IT industry doesn't control Pune real estate market - other industries and other economies - Indian & foreign - also play an important role. People from all over India & the world buy property at Pune. However, don't forget that - at the same time - new locations have emerged - where - still - one can get a 1 BHK Flat for 20 lakhs and a 2 BHK Flat in 30 - 35," said Mr. Vineet.

"But you have a big land bank. Can't you repeat Nano Homes in the fringe villages?," I asked.

"Our joint venture partners have tried - you know Dreams Aayana (at Sate between Vadgaon & Kanhe) - but, lack of urban infrastructure - transportation - connectivity - doesn't make it feasible for the end user working in Pune!," said Mr. Vineet.

"Moral of the story is prosperity creates poverty!," I said.

Kohinoor Grandeur, 2 BHK 3 BHK Flats & Shops at Mukai Chowk, Ravet, PCMC, Pune - Site Office - 2
Kohinoor Grandeur, 2 BHK 3 BHK Flats & Shops at Mukai Chowk, Ravet, PCMC, Pune - Site Office - 2


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9 comments:

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  2. Ravi sir,
    It seems we are now beyond a compassionate seller's stage where people used to build for housing. This market is for the ones with surplus money not stretched budgets. Banks and builders are flocking to people with wads of money and IT professional is not their target anymore, they are looking for businessmen, former landlords and NRIs now.. IT professional is the rental target whose lifestyle has long back surpassed his income..In short, IT is the new average..would you agree?

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  3. i guess this is the first builder who has admitted that its not builder but people of pune who needs to be blamed for property rise. picture this few weeks ago asking rate for 2 bhk in prakruti society was in range of 50 - 55 lakhs, out of a blue a welthy business man who wanted to gift a flat to his son purchased it for 70 lakhs. Well for him its was just show of money power , but does he think about implication on others? every where in pune u find such idiots who doesnt think before spending money. Also note its blackmoney which is coming out in real estate. Its a double blow that middle men who purchase in white becaz of home loan end up paying tax and still spoil the market. Its a bubble which is bloatingand would bust some day like US. IT people is the new poor people now

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  9. Hi Ravi, I lke your post very much and read most of them. Can you please compare Celestial city Phase2 with Kohinoor at Ravet in terms of construction quality, amenities and rates?
    Is it worth buying at Ravet first of all? Here you have mentioned now the market in not depend on IT. Yes I agree with that as even 10 years experience guys who gets average 70,000 in hand in IT will not be able to afford loan of 40-45 lacs. Who are the buyers then? Sorry so many questions.

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