is 2500-2800 psf for Flat /Floors is good Price in Noida or Gurgaon - Indian Real Estate Forum

gaurav1979gupta · 23-09-09

This is the edition (2) of my article on is Real estate on the road to recovery .

These are some of the artifacts that needs to be considered before coming to conculsion whether 2500-2800 is good price to buy a flat .

1.700-900 psf is the construction cost of any developers that is offering plethora of the facilites like swimming pool , power back and other facilites.
2.If one goes for luxoros apartment the prices are between 1000-1300 psf .

Total construction cost needs to be calculated only for the carpet Area not for the super area .

For example one 1350SqFeet where the loading is 65 - 70 % ( where in 1350 is super area and 900 would be your Carpet area ).

1. the Total cost of construction can not be more than 10-14 laks .
2/ What are the other component that adds to the cost of a flat or floor .It is the cost of Land .

Land Prices in NCR for Group Housing
. For Noida
(a) the prices for the Land has been 12000-15000 Per Sqare meter for Group Hosing Plot for the plots taken in the 2006-2007 .
(b) the prices for the new plots are 24000 per sqare meter in 2009.

For Gurgaon
(a) it is around 10000 -12000 per sqare meter Since most of the builders have bought agricltural land and then paid the conversion charges to Huda in the range of 40 lakhs to 1 crore per acre .

Since most the builders are making 12 to 14 fllors in apartment , the actual land prices gets divided in 14 flats .So even if the piece of land including interst on money becomes 30000 per sqare meter .for 1350 sqare feet flat It would be not more than 4 - 7 laks per flat . that comes out to be 300-500 rupess PSF .

So the total cost of the flat of 1350 sqare feet = 400*1350+10-14 laks
=5.4lakhs+10 = 16 lakhs +3 lakhs for other facilites = 19 lakhs .

Now I leave it to the users to decide whether getting a 1350 flat for 35-45 lakhs is good deal .

Venkytalks · 23-09-09

Gaurav you have made a small error in your calculation. The area of the plot divided by the number of flats in the plot is the actual area of the flat - it includes the common areas which are covered as well as green area and internal roads - we are paying for all that.

Because of this reason, nobody wants to build cheaper flats - there is a limit on the number of flats you can build in a given area in Gurgaon. Builder makes much more money and builds on much more of the land if he builds bigger sized luxury flat.

Having said that, the cost of construction for any flat is indeed 900 psf as you mention - being liberal. And builders are not paying cash for their land, they have tie up with the local politician/goonda/builder/broker nexus who procure the land and share the profits. How we dont know.

Profit margins are like 300% with no capital needed - only your booking amount.

gaurav1979gupta · 24-09-09

Venky

If you look at my calculation for the price of Land I have considered 1350 Sqare Feet Carpet Area +Common Area . +3 Lakhs for Additional Facilites (Road and other things ) as you mentioned .

Stars · 01-10-09

I have a similar query regarding the pricing in Gurgaon, we are looking for a flat in Raheja Atlantis which we have been told is a premium property , especially the interiors , finishing etc. The best quote we have got so far is Rs5500/- per sq ft . What s your opinion on this price ? Considering the builders reputation and since its ready to move in, do you think this would be a good price ?
All comments/suggestions/advise welcome

Venkytalks · 03-10-09

Its a good price. Cant get cheaper in that location and that quality

Stars · 03-10-09

Thanks Venky, thats certainly helpful !

12-10-09

join yahoo group gurgaonhomehunters for unique benefits and cost advantages. ]http://groups.yahoo.com/group/gurgaonhomehunters

Nisardel · 16-10-09

Ideally, thecost of land and development should not be more than 1800-2000psf for luxury projects.For medium type projects, it comes down to 1600-1800 psf.Rest is the margin, plus financing cost.

gaurav1979gupta · 25-10-09

5500/- psf is not an issue .Well I would rather suggest a simple test --

even with 5500/- psf , you may be selling out 27-34 % of the total cost of flat just for nothing called <Common facilites > .

No matter how much luxury/premium your apartment is it should not exceed the cost of land PSF in the given area in secondary market .

gaurav

23-09-09	#1
gaurav1979gupta New Member Join Date: Aug 2009 Posts: 19 Thanks: 0 Thanked 1 Time in 1 Post	is 2500-2800 psf for Flat /Floors is good Price in Noida or Gurgaon This is the edition (2) of my article on is Real estate on the road to recovery . These are some of the artifacts that needs to be considered before coming to conculsion whether 2500-2800 is good price to buy a flat . 1.700-900 psf is the construction cost of any developers that is offering plethora of the facilites like swimming pool , power back and other facilites. 2.If one goes for luxoros apartment the prices are between 1000-1300 psf . Total construction cost needs to be calculated only for the carpet Area not for the super area . For example one 1350SqFeet where the loading is 65 - 70 % ( where in 1350 is super area and 900 would be your Carpet area ). 1. the Total cost of construction can not be more than 10-14 laks . 2/ What are the other component that adds to the cost of a flat or floor .It is the cost of Land . Land Prices in NCR for Group Housing . For Noida (a) the prices for the Land has been 12000-15000 Per Sqare meter for Group Hosing Plot for the plots taken in the 2006-2007 . (b) the prices for the new plots are 24000 per sqare meter in 2009. For Gurgaon (a) it is around 10000 -12000 per sqare meter Since most of the builders have bought agricltural land and then paid the conversion charges to Huda in the range of 40 lakhs to 1 crore per acre . Since most the builders are making 12 to 14 fllors in apartment , the actual land prices gets divided in 14 flats .So even if the piece of land including interst on money becomes 30000 per sqare meter .for 1350 sqare feet flat It would be not more than 4 - 7 laks per flat . that comes out to be 300-500 rupess PSF . So the total cost of the flat of 1350 sqare feet = 400*1350+10-14 laks =5.4lakhs+10 = 16 lakhs +3 lakhs for other facilites = 19 lakhs . Now I leave it to the users to decide whether getting a 1350 flat for 35-45 lakhs is good deal .

01-10-09	#4
Stars New Member Join Date: Mar 2009 Posts: 22 Thanks: 0 Thanked 0 Times in 0 Posts	Raheja atlantis-gurgaon I have a similar query regarding the pricing in Gurgaon, we are looking for a flat in Raheja Atlantis which we have been told is a premium property , especially the interiors , finishing etc. The best quote we have got so far is Rs5500/- per sq ft . What s your opinion on this price ? Considering the builders reputation and since its ready to move in, do you think this would be a good price ? All comments/suggestions/advise welcome

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23-09-09	#2
Venkytalks Veteran Member Join Date: Sep 2009 Posts: 2,655 Thanks: 26 Thanked 176 Times in 92 Posts	Gaurav you have made a small error in your calculation. The area of the plot divided by the number of flats in the plot is the actual area of the flat - it includes the common areas which are covered as well as green area and internal roads - we are paying for all that. Because of this reason, nobody wants to build cheaper flats - there is a limit on the number of flats you can build in a given area in Gurgaon. Builder makes much more money and builds on much more of the land if he builds bigger sized luxury flat. Having said that, the cost of construction for any flat is indeed 900 psf as you mention - being liberal. And builders are not paying cash for their land, they have tie up with the local politician/goonda/builder/broker nexus who procure the land and share the profits. How we dont know. Profit margins are like 300% with no capital needed - only your booking amount.

24-09-09	#3
gaurav1979gupta New Member Join Date: Aug 2009 Posts: 19 Thanks: 0 Thanked 1 Time in 1 Post	Venky If you look at my calculation for the price of Land I have considered 1350 Sqare Feet Carpet Area +Common Area . +3 Lakhs for Additional Facilites (Road and other things ) as you mentioned .

03-10-09	#5
Venkytalks Veteran Member Join Date: Sep 2009 Posts: 2,655 Thanks: 26 Thanked 176 Times in 92 Posts	Its a good price. Cant get cheaper in that location and that quality

12-10-09	#7
Winner Unregistered User Posts: n/a	join yahoo group gurgaonhomehunters for unique benefits and cost advantages. ]http://groups.yahoo.com/group/gurgaonhomehunters

16-10-09	#8
Nisardel Member Join Date: Sep 2009 Posts: 223 Thanks: 0 Thanked 1 Time in 1 Post	Ideally, thecost of land and development should not be more than 1800-2000psf for luxury projects.For medium type projects, it comes down to 1600-1800 psf.Rest is the margin, plus financing cost.

25-10-09	#9
gaurav1979gupta New Member Join Date: Aug 2009 Posts: 19 Thanks: 0 Thanked 1 Time in 1 Post	5500/- psf is not an issue .Well I would rather suggest a simple test -- even with 5500/- psf , you may be selling out 27-34 % of the total cost of flat just for nothing called <Common facilites > . No matter how much luxury/premium your apartment is it should not exceed the cost of land PSF in the given area in secondary market . gaurav