Thursday, April 16, 2009

Can’t afford a home in Pune? There’s one up for grabs in.....

To hell with Pune builders!

The reluctance of several real estate developers in Pune and Mumbai region to scale down property rates in keeping with the market gloom has turned into a business opportunity for players from other states.

Sensing a good business opportunity, they are entering the Mumbai-Pune ring.

They are wooing buyers, originally from their states, back home with the promise of an affordable home.

This trend is not new, but this is perhaps the first time builders are looking at weaning away potential buyers from big cities such as Mumbai, Delhi and even Dubai.

Real estate players from states like Karnataka, Andhra Pradesh and Kerala are showcasing their properties in the city at a corporate level, giving customers the option to own a house in their homeland at much lower rates.
To read more, please, visit - Indian Express

Hail Pune real estate!

Sure, Pune and Mumabai builders are providing good business opportunity for the real estate players from Karnataka, Andhra and Kerala.

But more than that, Pune and Mumbai real estate is doing "great services" to local property buyers in these states. Considering the response of "Pune Property MahaYatra", organized by PBAP and Pune Sakal, I am sure, property rates in these states will come down substantially!

By organizing "Pune Property MahaYatra" in Kolhapur, Nashik, Nagpur, Aurangabad and Goa, Sakal convinced 25 Pune builders that they don't have an option but to reduce the property rates and launch "quality affordable housing projects" at "good" locations in Pune.

Result is:
1) Darode Jog (re)launched thier "Greenland-county" at the property rate of Rs.2,350 per sq.ft. at Narhe Ambegaon - off Sinhagad Road

2) Amit Enterprises launched Amit's Astonia at Balewadi, offering a 2 bhk flat in 25 lakhs (all inclusive)

3) Goel Ganga Group launched "Good Value Homes" in the range of Rs.18 lakhs to Rs.30 lakhs at Sinhagad Road, Aundh Annexe, Chinchwad and Undri!

4) Kumar Properties launched Swastipuram, a 1 and 2 BHK apartments scheme near S.P. Infocity, Phursungi. Prices start from Rs. 9 lakhs (inclusive of all expenses)

5) Kolte Patil launched "Umang Homes", 1 bhk, 1.5 bhk, 2bhk flats starting from Rs. 11.22 lakh, in their 80 acre township "Lush County" in Wagholi.

Thanks Sakal! Your "Pune Property MahaYatra" proved to be the beginning of an era of budget homes in Pune real estate market. Now, Pune property buyers can say proudly, "Hail Pune real estate!"

View Affordable Housing Projects in Pune Real Estate Market in a larger map

Along with:

6) Gera's Park View 1 at Kharadi,

7) Sunshine Hills near Bishops' School at Undri - Kondhwa annex (!),

8) Kenjale Pophale Associates' Spring Meadows at Ambegaon,

9) Runwal Groups's Euphoria at Kondhwa Budruk, opp. Talab Factory offering 1, 1½, 2, 2½, 3, 3½ BHK flats and

10) Sara City, a 50 acre mega township at Chakan, offering 1 BHK flat for Rs. 6.99 lakh, these projects offer good options of affordable housing for Pune property buyers.

How to negotiate the property rate of a luxurious housing project in Pune?

By now, i am sure, you must be convinced about the "uniqueness" of Pune real estate market. Here demanding, abusing, complaining about not reducing property rates or even "waiting without booking" is not going to work.

Pune builders are not going to give up so easily. They are shrewd and resourceful marketers. In the second half of 2008, when property buyers practically stopped booking a flat, without substantially reducing the property rates of their on going projects, Pune builders took a diversion and opened a new market of an "affordable homes" and secured their position.

Now, while negotiating the property rates of on going "luxurious" projects in Pune, you have to really work hard.

In last couple of months, there is no "new supply of properties" in this category. On weekends, if you visit any site office, you can see that property buyers have started visiting. Not only that, actually, bookings are happening. Most important point is, Pune builders know how to market their projects in recession.

In this recessionary market, when there is less supply and enough inquiries to boost the moral of salesperson, do you think you will be successful in convincing Pune builder to be reasonable about property rates of his on going "luxurious" project?

For example: How can you convince Darode Jog to reduce the property rate of Crossover County on Sinhagad road? If you try to negotiate Rs. 3,500 per sq.ft., they will suggest you to go for the 'rational' property rate of Rs. 2,500 per sq.ft. in Greenland-County, off Sinhagad road!

Please, tell us in the comments (Comments Policy),, how are you going to convince the Pune builder to reduce the property rates?

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  1. I agree with you. Negotiating with these builders is very difficult. We are a group of 6 people searching a affordable home within a range of 22-24 Lakhs in pimple Saudagar but nothing happen so far. We discussed with Wadhawani for Ganeesham and GK developers for Rajaveer Palace, Roseland county etc. If anyione have good suggestion then please let me know.

    Another point I think of to give up for Pune property and search good property at home town ( I am from Indore). And in 25 L I can get very good deal there and I think appreciation on property would be more on emerging city rather than saturated area.

  2. Its true, in Indore you can own a cool 2BHK flat in the best locations which are right in the center of the city.

    Also, 25Ls can help you buy a row-houses in townships which are in the outskirts. If the motive is investment, one can get a good plot too.

  3. What can one comment on this blog except that Ravi K, you are a property salesman.... Your hidden agenda while acting to speak for common ppl is to market builders property..Jog surely has given you some incentive to speak for him... By writing,
    How can you convince Darode Jog to reduce the property rate of Crossover County on Sinhagad road? If you try to negotiate Rs. 3,500 per sq.ft., they will suggest you to go for the 'rational' property rate of Rs. 2,500 per sq.ft. in Greenland-County, off Sinhagad road!

    you have very smartly put into mind of readers that the price at sinhagad is 3500...And may I ask with this rate how many ppl are booking currently?? Guess none or very few fools with spare money!!

  4. # Ref: "Your hidden agenda while acting to speak for common ppl is to market builders property."

    - Thanks for saying "Jog surely has given you some incentive to speak for him"! I will forward this comment to him!

    - No. I don't have "hidden agenda to market builders property".

    - I have an "open agenda" to help you book a flat.

    - I agree with you about the property rate at Crossover County.

    I request you to help our friends by sharing your tips on how to negotiate and get a good deal.

  5. I have been critic of Ravi for some time. But I think Ravi is spot on on this one. It is very hard to bargain with Pune builders. This is one of the reasons we don't see real price drop in Pune.New projects with lower prices are very inferior to luxurious one.

  6. A correction can be in two ways:
    1. Price based,
    2. Time based.

    If Pune builders reduce the price of a 2BHK flat from 40L to 30L, what will they tell the fool who bought from them at 40L six months before?

    But is there any news about price rise for the past six months. This is a time based correction which I believe will last for the next 3 years at least.

    So if builders do not reduce the price of the flat, rest assured that they cannot increase the price.

    It is better to buy the same flat after 3 years at 40L, when the real value of the money will have gone down due to simple old inflation!

    A sign of a good negotiator is one who is prepared to wait for a good deal.

    In India, it is the builders who are subprime and are unable to service their debt.

  7. You can book a flat at Crossover County, Sinhagad road for Rs.3000/- - 3100/- In fact I had booked recently.

  8. Hi All, I do not agree that Pune builders are very hard bargainers and also that they are shrewd in marketing. I have visited many properties and even without my saying anything first thing they do is to reduce the quote prices. Also, they negotiate pretty normally if you just hang with them long enough. My tips for everyone here, which I humbly suggest -
    1) Do not start price negotiations on the first meeting.
    2) Visit property for at least 3-4 times and each time quote the same budget that you have in mind.
    3) Do not negotiate over phone.
    4) Carry 4-5 similar property brochures and make sure that you make them seen by each of the builder.
    5) Stick to your rates and be willing to wait.
    6) Bench mark the property rates not going by what papers say or what you see on internet, but by going around physically in that area and accessing the value yourself.
    7) Once you arrive at reasonable price with builder, wait for 2-3 days before giving your word.
    8) Be respectful and tactful at the same time. Other person will appreciate politeness. Do not boast of your skills in any case.
    9) Be true to your words about appointments.
    10) Book the property only after research of about 3-4 months.

    Thanks .....

  9. Talking specifically about Crossover County, I personally believe that the property is not worth more than 2500 per sq ft. It's just the hype created by Darode-Jog in 2006-07. They are not even owners of the project land. It's been owned by Lagads and they are developing it. I know some ppl to whom they have sold flats in the range of 2500s that too in boom period. Now in such gloomy times they should sell it at much lower rates and still they will make huge profits.

  10. Ravi-
    The project Greenland-County, off Sinhagad road was launched on 3rd April 09 and its first 2 phases has been sold out i.e 498 units in less than 4 days.

    I called the sales office on 7th April and they said they are not accepting any further bookings and will keep my name in waiting list... Is this some kind of a gimmick?? how can u sell 500 units in 3-4 days without any significant market buzz about a project..
    What do you have to say?

  11. Ref: "how can u sell 500 units in 3-4 days without any significant market buzz about a project.."

    Hello Nikhil!

    Thanks for the info about the booking.

    I hope, you had called just for the information and you didn't miss an opportunity to book in the first 2 phases.
    Please, visit: Anand Jog, Director - Darode Jog Properties, on budget homes and property rates of Greenland-County at Narhe Ambegaon, off Sinhagad road, Pune

  12. Ravi,I would like to know if this the right time to buy home not for investment but for self occupation.I am looking for a 3 bhk in the budget of 50-60 lac and have seen "ROHAN Mithila" and liked it.But they are not ready to reduce the prices(3850/sqft). Could you suggest a better option available in the same league and if you foresee any reduction in prices by Rohan and other builders for their luxurious projects

  13. # Ref: "I would like to know if this the right time.."

    - Yes, this is the right time to buy a home. Not only because of the market situation but because you feel so!

    # Ref: ""ROHAN Mithila"

    - As a real estate salesman i would never bother to suggest an option to someone who liked Rohan Mithila!

    - As a real estate blogger, i would like to ask you about Magarpatta City. I believe one should start and end his search with Magarpatta City! But that's not happening!! Why? How about you?

    While buying home, i believe, neighborhood plays important role.
    Looks like that you have different views about it. Right?

  14. Thanks Ravi for your comments, but
    as far as neighbourhood goes I guess you are referring to airport which is in its near vicinity. I being from airforce wont mind that but would like to know what's your opinion about the project and Rohan as a builder. Do they provide all aminities ultimately what they commit initially? I want to stay in area near airforce station so haven't really explored magarpatta city project. Thanks

  15. # Ref:"what's your opinion about the project and Rohan as a builder. Do they provide all amenities ultimately what they commit initially?"

    - Rohan Mithila as a project: if you see i posted news about the launch but never wrote a review of the project. Because after writing it i thought i was not fair.

    I am still confused about the project. Today, i don't see any point in talking about the project which is at a very initial stage of construction and planned on lot of assumptions.

    As a professional, it would be wrong to criticize or appreciate the project. However, as a property buyer you don't have those constraints.

    - Yes, amenities is not a problem. With Rohan that's not an issue.

    - Builder will provide a water fountain. But what about the water?

    - Is it sensible to plan a "water fountain" when there is a scarcity of water?

    - I believe that builder is always exempted from using common sense but not the buyer!

  16. Hi Ravi,

    Recently I visited the Property exhibition at Hotel Orchid at Balewadi..

    And was shocked by the increased in the rates by the all builders for Wakad and Pimple Sudagar area….

    The rates observed are as below ---

    Ready possession flats – 2500 – 2700 (Approx)
    Future possession flats (dec 2010) – 2300 – 2500 (Approx)

    Is the real estate market in the boom again??
    Why the builder’s are still increasing the rates???

    Have I missed the best buy period????

    Please provide you valuable thoughts ….. also suggest the good property within 25 lacs….


  17. Ref: "suggest the good property within 25 lacs…."

    - Good means: 2 bhk - around 1,000 sq.ft. - in 25 lakh?

  18. Hi Ravi...

    Good meaning 1000+ area + good construction quality and amenities doesn't matter

    -- Parag

  19. Any idea how much should be the realistic price for Paranjpe's La Cresta in Sopan Baug.

    Any response on it will be highly appreciated.


  20. which property rates will increase more singhgad road or pimple saudagar in future.

  21. Why u cant talk against P.B.A.P because some people taking 100% terrace charges ? it is a Legal? if not what government doing ? they are sleeping or what ?

  22. Hi,very nice information you have shared thanks a lot,here I have some more options for office space for rent we provide you the genuine places