Jaideepsingh

Has anyone done a site visit recently..

just wondering if there has been any progress on the TCS campus next door to Megapolis.. also the status of building A3 in Sparklet.

I see that there were quite a few adverse views on Megapolis location and lack of infrastructure being a key issue. also comments on the profiteering by builders..

remember that in each project an early adopter takes risk and therefore return.. if u invest after the area is fully developed.. u will pay a premium.. this is like any investment - PE/Venture capital vs IPO..still IPOs are considered some of the best investment vehicles over the long run..

I have seen (and invested in) Magarpatta and Bramha Suncity develop as good places to live in due to good community living and proximity to place of work.

The biggest issue with India and Pune in particular is congestion on roads and moreso poor road safety.. The no. of road accidents (especially 2 - wheeler - ypungsters losing lives) and time spent traveling to and from Hinjewadi itself is enough of a reason to live in Hinjewadi.... again it would be DINK and bachelors to start with and then entire families.. in 1-2 years..

Real estate investment requires micro - analysis of the site, financial analysis on the builder (and sponsor) and its demand supply in next 3-5 years just like any other investment. One safe assumption to make is that convenience shops, schools, malls and multiplexes etc will come up in and around townships with good sponsors - especially where thousands of ppl live and work providing a good captive customer base.. and these become the icing on the cake..

The only way Blue Ridge and Megapolis can sell their inventory if they set up school, clubs and Malls -- they will come as are standalone good commercial ventures

I would like to gauge from people living in Pune (unfortunately no longer living in Pune.. hope to return soon) if the following can still be said about Pune RE in the next 3-5 years

- Demand supply expected to remain strong due to diversified Industries, new industrial / IT projects, good weather, law and order and cosmopolitan culture.

- Good rental yield compared to North India. Investors value yield in today's time as capital values have all been really driven up mainly due to black economy, which may not sustainable or cannot go up dramatically (hopefully no more 2G scams).

- Lack of good roads and safety (very important to NRIs/ppl who have lived overseas - even if briefly) for self and family are driving people to townships.

- In the long run, townships should be better maintained, better rentals (less travel) and the builder needs to develop amenities to attract new buyers..


Investment at today's prices may appear very difficult so is investment in a share of Google//Reliance/ Unilever etc..and it was as difficult when one invested in these new projects at inception stage...

A simple IRR calculation can also be used: Rental returns less maintenance + interest on loan+ tax shield on interest and principal repayment + capital appreciation at the rate of inflation (typically RE has returned atleast 2x Inflation).. and that you should be happy to to live in the property in 3-5 years (especially for first time buyer).

Jaideepsingh

Has anyone done a site visit recently..

just wondering if there has been any progress on the TCS campus next door to Megapolis.. also the status of building A3 in Sparklet.

I see that there were quite a few adverse views on Megapolis location and lack of infrastructure being a key issue. also comments on the profiteering by builders..

remember that in each project an early adopter takes risk and therefore return.. if u invest after the area is fully developed.. u will pay a premium.. this is like any investment - PE/Venture capital vs IPO..still IPOs are considered some of the best investment vehicles over the long run..

I have seen (and invested in) Magarpatta and Bramha Suncity develop as good places to live in due to good community living and proximity to place of work.

The biggest issue with India and Pune in particular is congestion on roads and moreso poor road safety.. The no. of road accidents (especially 2 - wheeler - ypungsters losing lives) and time spent traveling to and from Hinjewadi itself is enough of a reason to live in Hinjewadi.... again it would be DINK and bachelors to start with and then entire families.. in 1-2 years..

Real estate investment requires micro - analysis of the site, financial analysis on the builder (and sponsor) and its demand supply in next 3-5 years just like any other investment. One safe assumption to make is that convenience shops, schools, malls and multiplexes etc will come up in and around townships with good sponsors - especially where thousands of ppl live and work providing a good captive customer base.. and these become the icing on the cake..

The only way Blue Ridge and Megapolis can sell their inventory if they set up school, clubs and Malls -- they will come as are standalone good commercial ventures

I would like to gauge from people living in Pune (unfortunately no longer living in Pune.. hope to return soon) if the following can still be said about Pune RE in the next 3-5 years

- Demand supply expected to remain strong due to diversified Industries, new industrial / IT projects, good weather, law and order and cosmopolitan culture.

- Good rental yield compared to North India. Investors value yield in today's time as capital values have all been really driven up mainly due to black economy, which may not sustainable or cannot go up dramatically (hopefully no more 2G scams).

- Lack of good roads and safety (very important to NRIs/ppl who have lived overseas - even if briefly) for self and family are driving people to townships.

- In the long run, townships should be better maintained, better rentals (less travel) and the builder needs to develop amenities to attract new buyers..


Investment at today's prices may appear very difficult so is investment in a share of Google//Reliance/ Unilever etc..and it was as difficult when one invested in these new projects at inception stage...

A simple IRR calculation can also be used to see if the current price of a property makes sense: Rental returns less maintenance + interest on loan+ tax shield on interest and principal repayment + capital appreciation at the rate of inflation (typically RE has returned atleast 2x Inflation).. and that you should be happy to to live in the property in 3-5 years (especially for first time buyer).

kedarp

TCS office is partly functioning now. Few projects have moved in - but it is less than 10% of total capacity.

Some 10 flats are now occupied in Building B and C of Smart Homes. Not sure about Sparklet project.

Jaideepsingh

Thanks Kedar.. I think companies will also want that there is some accommodation available nearby before they migrate their offices.. Hopefully, Megapolis should be able to deliver Sparklet in June11 (seems possible given the pace of construction)..

Any views from anyone who works in TCS.. I am interested to understand the rental potential ..for a unfurnished and furnished flat..

Thanks
Jaideep

verygreat

probably ..
Rent 10K - unfurnished, 13K - semi furnished pm
Your Maintenance + Prop tax 3K pm
EMI 25K pm
Tax on rent 33%

prkolekar

I had been there last weekend. TCS office is partly functional. My friends from TCS inforemed me that, TCS wants to shift their Yantra Park (Thane) campus to Hinjewadi by Mid next year. The pace at which TCS is working on this project confirms my information.

Chirpyguy

That sounds like a good news. I have a flat at Sparklet as well and hoping the prices will go up if TCS moves their operations there - i am sure other IT companies will follow suit sooner than later and this will have a positive impact on the property prices in Hinzwadi area.

Jaideepsingh

Thanks.. I would reiterate the issue of road safety (refer Ambala kids accident) and the need for integrated townships with schools and infrastructure..

The kind of investment being made by TCS and Tech Mahindra should position Megapolis well in near future..

Recently read a TCS business update which confirms strong hiring in 2012

Wage hike to be muted but will hire in good numbers this year: TCS MD


Also, DLF SEZ has been bought by Blackstone.. Not sure on how to read this .. but would be good to see some blue chip cos occupying the SEZ soon.. as Blackstone is one of the largest PE investor globally.

sparsh

Any recent update on the possession dat for smart home - Sparklet?