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Wednesday, April 10, 2013

Real Estate Gaming

Small Bets - Big Show:

Special Inaugural Offer for First 50 Bookings at Lake Shire, 1 BHK 2 BHK 3 BHK Flats at Jambhulwadi Lake, Ambegaon Khurd, Pune 411046
Special Inaugural Offer for First 50 Bookings at Lake Shire, 1 BHK 2 BHK 3 BHK Flats at Jambhulwadi Lake, Ambegaon Khurd, Pune 411046

The full page ad of Lake Shire Ambegaon was an open invitation for the real estate gamer. An invitation of an exciting game.

Bets were small. 1 BHK - Rs. 21.5 Lakh. 2 BHK - Rs. 35 Lakh. 3 BHK - Rs. 45 Lakh.
Location - by the Lake - had glamour.
Capable hosts - Guardian & Pate - were running the show.
In short, odds were low.

The actual venue was a big show. Well organized to make a real estate gamer comfortable. No wonder, in the first morning session itself, 36 bets were placed. At the minimum rate of Rs. 3,650 per sq.ft.!

One of the hosts told me that the bets will keep on going up - may cross Rs. 3,900 by Sunday evening. Which looked almost possible.

When I called one of the hosts of the game on Monday morning, he confirmed 150 bets!
"Congratulations! What an exciting game!!," I said.
"We are pro!," the host said.
"Yes! You are!!," I agreed.
"I must congratulate the creator of this game!," I said to myself and met Architect Vikas Achalkar. Here are the excerpts of our small talk. In my words.

People Bet On Floor Plan!

Architect Vikas Achalkar 5
Architect Vikas Achalkar

"Every one is wondering - how can I sell - a 35 Lakh Flat - as well as - a 3 Crore Flat - without a sample flat?," accepting my congratulations for the huge success of Lake Shire, Architect Vikas Achalkar said.

"Yes! Me too!! How?," I said.

"Planning - strategy - conceptualization! In this real estate slowdown - success of a project depends upon - instant sale - at the launch. Builders come to me because I make it happen," Architect Vikas said.

"Builders come to you for instant sale - not for maximum saleable area?," I asked.

"Maximum saleable area assures maximum profit - but, for profit - sale has to happen - isn't it? Instant sale at the launch assures - free funds - for fast construction - less time and less cost of funds - means maximum profit at minimum investment - isn't it? I educate my clients!," said Architect Vikas.

"When Manish (Manish Sabade of Guardian Developers) asked me to design this project - I asked him only one question - at what price do you want to sell - he said - start at 3400 - 3600 and end at 4000 - 4200. I said OK. It's possible if you complete it in 3 years. Keeping in mind that there would be 2 union budgets from the start to finish of the project - I told him to hold at least 30 per cent flats - as a buffer against eventual input costs escalations. Once - financial plan - is ready - designing suitable property becomes easy," said Architect Vikas.

"So - it's not only about architecture! You develop the business model!!," I said.

"Otherwise, how could have I become so successful at this age! At 41, I have achieved what most of the architects achieve at the end of their couriers - when they are 55 - 57 year old!," said Architect Vikas.

"To design right property you need to know your buyer - when you design right property for the right buyers - you see what happened!," said Architect Vikas.

"Yes! 150 was the last figure I heard!," I said.

"160! Now the rate is 3950! Why?," said Architect Vikas.

"Interesting location - attractive advertising - right budget - good show - all matters - to bring the buyer at the site - but what makes people take instant decision is - planning! It shows that Doctors - liked my 2 BHK Flat as a second home - investors realized the appreciation potential of my 2 BHK Flat - all these - who have ready money - can raise money easily - decided instantly to go for it! As I have planned - visualized," said Architect Vikas.

"What is so great about your 2 BHK Flat?," I asked.

"Besides it fits in their budget of approx 40 Lakh - there is no waste of space in the flat - you get maximum space to utilize - and the room sizes are exact - enough - these buyers know what is good and what is not - these are experienced buyers - for whom the right mix of size and price is the trigger - hot button - to decide instantly!," said Architect Vikas.

"Yes! Your flats are taken instantly by the people who had ready money!!," I said.

Food is fun. Home is game.

2 BHK Flats at Lake Shire Ambegaon - Area Statement
2 BHK Flats at Lake Shire Ambegaon - Area Statement

To understand Architect Vikas Achalkar better, after coming home, I had a close look at the floor plans of 2 BHK Flat in Lake Shire.

For me, housing is a basic need. But in the current market economy, business is not for fulfilling basic human need. For example, restaurants are not to feed the people - but to give pleasure to those who have money. Same is about real estate. It is for those privileged few - who like to play a money game.

Funny thing is, a real estate gamer may play blind. But not the builder. The builder is very calculative. He knows that every inch counts. And counts a lot. Have a look at the above area statement of 2 BHK Flats in Lake Shire and tell me, in the comments, are you ready to join the game and bet on property?

Related Stories:

1) April Fool

2) XRBIA Hinjewadi - The Sucker's Deal for the Stupid People with Some Disposable Income

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  1. Now just wait and watch the downturn of reality market.....
    Did you read the Infosys results ??? stock is already down by more than 20% which is very big thing....IT is in severe slowdown..if they wakeup then they will either sell their flats after 3yrs or will sell at more than 60% discount to current market price....

    Wakeup guys.....

    Jai hoo!!!!

  2. opps read...
    if they wakeup good, else they will either sell their flats after 3yrs or will sell at more than 60% discount to current market price....

  3. Ravi - Its pretty interesting to read your blogs with all minute details, i can say because of your blog i learnt some hidden rules & regulations of this crazy real estate " Money Suckers ". After looking at ongoing prices in real estate market and even if pay big amount which is ur life long earnings its not sure " U WILL GET WHAT U SEE ON PAPER " so that is like fire cracker boooommmmm :-) ....Now it feels like buying house in USA is cheaper than Pune.

    I read ur blog on XRBIA it is so crazy and people like Hafiz Contractor are creating new era slums and to be frank it is not cheap at all.... so as a home buyer who should we trust now ? Is there any way or checklist which will help us to find right builder. Initially people use to decide where they want to live and based on that they used to find houses now its wise versa have to find good developer and have to decide okk i will live there

    will you please write a blog on some good builders with good projects with clean reputation..... there will be some good people in this money sucking business.

    Thanks again for this great work.

  4. I honestly feel Buyers are looser many of the time in this Real-Estate Game as they lack patience..... They are in such hurry to book flats as if tomorrow there wont be any more houses constructed.

    why blame Builders n Others

  5. Plan is not that good. living room fails to get c-shape seating in all the plans. and overall planning is somewhat similar to urbangram project. But the bookings response must be the encouraging one for the builders.

  6. Yes ! I agree this Vikas has also designed Solacia .One can go and see how to put a building forcefully like a C shape curve by reducing ameneties size to as small as no one can use and make greedy builder happy by saleing ameneties area converted to unplanned buildings .

    Balvelkar Housing & Vikas you are really champ in looting us .Hope you will not get next birth as Human.