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23-05-08

Hi..

Well I think this is the most discussed topic in real estate corners.

I believe the answer lies in maintaining the most appropriate balance between the Cost of Construction and the Selling Price.

As per current industry norms, the cost of construction is around Rs. 1200 - 1300 per Sq. Ft. (I know this statement can create a fresh debate as the construction cost varies drastically from city to city and needless to say, developer to developer :p , but this figure is what i got after discussing with many civil people who are the only straight forwardly speaking ones in our trade

)

And ofcourse to continue the story we have Overheads, Marketing Expenses, Project Management and blah blah blah.

So at the end of the day the cost comes around Rs. 1500 - Rs. 1700 and just when you thought its over, wait !!! we have delayed projects on the menu for you. So the pending bank loans and capital costs etc etc takes your cost of construction further ahead.

Now for a developer asking a price of Rs. 1800 BSP for his project, I don’t think one need to be a scholar to answer what the construction will be like. So, although the basic structure is still ok, which costs around Rs. 700 – 800 per Sq. Ft. (second debatable statement of the response) the problem lies in the finishing part and bad luck for th developer, this is what the end customer notices.

Well as I said this varies from city to city, I shared what I have seen in North

Regards

Chetan

23-05-08	#2
chin2_2much Unregistered User Posts: n/a	Hi.. Well I think this is the most discussed topic in real estate corners. I believe the answer lies in maintaining the most appropriate balance between the Cost of Construction and the Selling Price. As per current industry norms, the cost of construction is around Rs. 1200 - 1300 per Sq. Ft. (I know this statement can create a fresh debate as the construction cost varies drastically from city to city and needless to say, developer to developer :p , but this figure is what i got after discussing with many civil people who are the only straight forwardly speaking ones in our trade ) And ofcourse to continue the story we have Overheads, Marketing Expenses, Project Management and blah blah blah. So at the end of the day the cost comes around Rs. 1500 - Rs. 1700 and just when you thought its over, wait !!! we have delayed projects on the menu for you. So the pending bank loans and capital costs etc etc takes your cost of construction further ahead. Now for a developer asking a price of Rs. 1800 BSP for his project, I don’t think one need to be a scholar to answer what the construction will be like. So, although the basic structure is still ok, which costs around Rs. 700 – 800 per Sq. Ft. (second debatable statement of the response) the problem lies in the finishing part and bad luck for th developer, this is what the end customer notices. Well as I said this varies from city to city, I shared what I have seen in North Regards Chetan