Ravi Karandeekar, You are a fool!

Entrance of CREDAI-PUNE METRO - PROFEST WEST 2011 - Exhibition of properties in Pune West

Yesterday evening, I visited PROFEST WEST 2011, property exhibition organized by CREDAI-PUNE METRO at VITS Hotel, Balewadi Stadium, at Sadanand Hotel Junction of Mumbai Bangalore Bypass & Baner Mahalunge Road in Pune.

Since, it was the last weekend before Diwali, the crowd of property buyers was not 'huge'. Looking at the 'free' real estate sales persons in the stall, i decided to talk to them and understand how Pune real estate market is doing.

After visiting a couple of stalls, i realized that all real estate salespersons were trying to tell me something. Not about Pune real estate market, but about me and my blog. Of course, these people were not as "free and frank" as some of you readers are - in your comments on my Ravi Karandeekar's Pune Real Estate Market News Blog. So, i took some time to understand what they were trying to tell me. Only when I met Mr. Anil Pharande, Chairman of Pharande Spaces, at the 'exit' of the property exhibition, i understood that they all were trying to tell me - Ravi Karandeekar, You are a fool!

"Karandeekar.....look...what i have done! You wrote who will buy in this "Aadiwasi area"....but...I sold total 1,800 flats in Celestial City and Woodsville!! Accept that you were wrong!!!," tightly griping my hand, Mr. Anil Pharande said.

I was about to say that - Sir, I didn't label Ravet & Chikhali - Moshi as an Aadiwasi area! I raised question only about the timing of launch, size of the property, property rate, charging terrace 100 per cent and 30 per cent loading - but i couldn't; because, someone stopped to congratulate Mr. Pharande for organizing such a grand event.

Introducing me to him, who was a builder in PCMC, Mr. Pharande praised my blog and added that, "Only problem is, like all Punekars, Ravi also didn't know the potential of PCMC. When we launched Celestial City, I called him and gave him tuition!"

"Yes, Sir! You opened my eyes. You didn't teach me a lesson. But, gave me a tuition!," I said.

"I have created new markets. Nobody knew Ravet - Moshi - Chikhali before i launched Celestial City and Woodsville. Now, every week new projects are launched there. And all are affordable for a common-man. Aren't they?," Mr. Pharande said.

"Yes, Sir! Thanks for your teachings - without you - the world would not have understood the potential of PCMC!!," I said.

"In the days of world financial crises, we not only gave an affordable home to a common man - but good appreciation for his property too!," Mr. Pharande said.

"Yes, Sir! From 2,400 in 2009 to Rs. 3,400 per sq.ft. in 2011 - 1,000 Rupees appreciation in 2 years is awesome!," I said.

I was about to say, "Sir, you have done lot of good things for the builders too! Now, your way of affordable pricing has become a standard property pricing policy of Pune real estate market!" but Mr. Pharande gave me the parting message, "Be positive - blog the facts - provide useful information about Pune real estate market - than criticizing - Goodbye"

"Yes, Sir! I got you!!," I said and somehow managed to free my hand from his powerful clutch.

As i came out of the exhibition, i realized that I had made a big mistake. I didn't take the 'positive step'. I didn't give my best wishes to Mr. Pharande for his upcoming township in Punawale!

"Ravi Karandeekar, what did you learn today?," I asked myself. When i started preparing a random list of things i have learned in PROFEST WEST 2011, i realized that all conversations i had with my friends had some positive messages for me.

1) Being enthusiastic about upcoming projects in Pune real estate market and writing about their 'lucrative' pre-launch offers is positive blogging;

Raising questions about sanctions and approvals is negative. There isn't anything 'unethical' about launching projects without all sanctions and approvals.

Because, even if the sanctions take time and the projects don't start for a few months, ultimately, those who have booked at the pre-launch & launch offer are in profit - because they get appreciation!

The salesperson in Mont Vert Luxury Homes was trying to tell me this when he talked about the 'huge appreciation' of Mont Vert Belair at Bhugaon.

In July 2010, in the pre-launch offer, the property rate was only Rs. 2599 per sq.ft.. And today, in October 2011, the current rate of Mont Vert Belair Bhugaon is Rs. 3,799 per sq.ft.! Now, all inclusive property price of a 2 BHK Flat in Mont Vert Belair is in the range of Rs. 48.55 to 51.64 Lakhs and a 3 BHK Flat fits in the budget of Rs. 60.30 to 61.19 Lakhs.

What huge appreciation - Rs. 1,200 per sq.ft. - in such a small period of time - only 15 months! Everyone who booked in Mont Vert Belair is very happy!

Oh! God!! It was rude to say - "What is your business? Making people rich? Otherwise, you would not have launched Belair in July 2010!"

2) A 2 BHK Flat for Rs. 45 to 48 Lakhs, near Hinjewadi - at Baner- Balewadi, Wakad, & Pimple Saudagar - not a builder's offer but a property buyer's demand!

Yash Promoters & Builders' stall was at the entrance of PROFEST WEST 2011. They have launched a new project Yash Wisteria, only 2 BHK Flats near Om Developers' Island in Wakad. Carpet area of a 2 BHK Flat was around 646 or 636 sq.ft. But the terraces were quite huge - from 220 sq.ft. to 315 sq.ft.

All inclusive property price of these 2 BHK Flats in Yash Wisteria Wakad was in the range of Rs. 47.4 to 48.5 Lakhs.

"If the terraces had been little smaller - your 2 BHK Flat would have cost around 40 lakhs! Isn't it?," i asked the salesperson.

"Yes! But, then who would have bought it? Someone who's requirement is 2 BHK has a budget of 45 - 48 lakhs! Why would have he purchased a smaller flat when he can buy a big one?," the salesperson said.

"Is it so? People like to buy a 2 BHK Flat for 45 - 48 Lakhs?," i asked.

"Yes! Go and visit other stalls. Then you will understand why we are offering big terraces - max value in your budget!," the salesperson said.

As per his advice, i visited a few stalls and asked for the all inclusive property price of a 2 BHK Flat. You know what? Every builder was selling 2 BHK Flat for around Rs. 50 Lakhs.
1) Costa Rica Wakad Rs. 47.67 to 51.10 Lakhs (up to 5th floor)
2) B U Bhandari Landmarks' Alacrity Baner Rs. 52.63 & 54.07 Total Package
3) Paranjape Schemes' Vasant Vihar Towers Rs. 56.13 & 58.15 Lakhs
4) Paranjape Schemes' Yuthika Baner Rs. 57.8 to 67.6 Lakhs

When the salesperson at Midori Towers Pimple Nilakh told me that the all inclusive property prices of his ready possession 2 BHK Flat is Rs. 66 Lakhs, i asked him, "Why 66? A 2 BHK Flat always costs around Rs. 48 - 50 lakhs!"

At one stall, i asked my friend, "How come all 2 BHK Flats cost around Rs. 50 Lakhs? Isn't it too much price for a 2 BHK?"

"Sit down for a moment and i will show you why we sell a 2 BHK Flat for Rs. 50 Lakhs!," my friend said.

I pulled the chair and started gossiping. In no time, a visitor came to us and asked about the availability in my friend's project.

Looking at me, instead of asking a standard question - What is your requirement? 2 BHK or 3 BHK? - my friend asked, "What is your budget?"

"Around 45 - i can stretch it up to 48 for a 2 BHK Flat," the visitor said.

Looking at me, my friend said, "Good! I have a few flats in your budget - but if you stretch a little - only 1 or 2 Lakhs more - you can get a choice!,"

"Yes! Certainly!! I want a choice!!! Tell me what you have..," the visitor said.

My friend told his junior to look after 'the inquiry' and said, "How was the demo? Now, you know that - a 2 BHK Flat for Rs. 50 lakhs - has become a standard property price near Hinjewadi!"

"Ravi, in Pune real estate market after every 2 - 3 years "fresh blood" becomes a prospective buyer. Today's property buyer is Rs. 70 per litre buyer - he will be unhappy only if petrol price become 72 and would be happy if it comes down to 68 rupees per litre - he is not like you and me who used to buy a petrol at 25 rupees per litre! You know? In the beginning, i used to feel shy to quote 45 for a 2 BHK. But, not now? Now, i fear to quote less than 45 - because the buyer may think that my property is not that good!," my friend said.

"Come on, how many can afford 50 lakh 2 BHK Flat?," i said.

"Certainly, a few! But, a lot more than the flats all builders can construct near Hinjewadi! You know? Now, my boss is happy even if i book 5 - 6 flats in a month. Because, 5 - 6 flats at today's rate are - as good as - selling 10 - 12 flats at the launch rate. Point is - builder & buyer - all are happy! Only those who don't have "purchasing power" are complaining and blaming!!," my friend said.

My friend was trying to tell me that even the property prices are exorbitant & the sale is low, possibility of a "crash" or property prices coming down is zero!

3) A property buyer who complaints about a builder, mostly, has an "ego problem"!:

While we were talking, one of my old friends had joined us. Since, on my blog there were many comments on his project, i thought that it would be better to talk with him in private. So, i said, "Let us go & sit in your stall"

"instead of that, let us go and have a cup of coffee!," my friend said.

"Coffee? When did you start drinking coffee?," i asked.

"My boss has told me to 'keep Ravi Karandeekar away from my site'. So, my stall is not a good place for us to talk," my friend said.

"Why?," i asked.

"Ego problem!," my friend said.

"But, I haven't written about your project in so many months!," i said.

"You haven't but our buyers keep on writing comments on your blog," my friend said.

"Good! Solve the complaints. Your property buyers will start writing good about you!," i said.

"I would have done that but my boss sincerely believes that most customer complaints are 'ego problem' of the property buyers and the rest are misunderstanding and unrealistic expectations from the builder!," my friend said.

"So, what is the solution?," i asked.

"Ignore! Attending means pampering ego. Attending means wasting time to teach a person who is not ready to learn! Waste of time and energy!! My boss believes!!!," my friend said.

"Doesn't bad reputation affect your booking?," i asked.

"Double spread full page color ads in TOI are not that expensive - my boss says!," my friend said. I was about to say something but couldn't because Mr. Anil Pharande caught hold of me.

Related Stories:

1) FRIDAY, OCTOBER 14, 2011

PROFEST EAST & WEST 2011 - Pune Property Exhibitions

2) MONDAY, OCTOBER 3, 2011

Ravi Karandeekar's Most Popular Pune Real Estate Market News Blogs in September 2011

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