No exclusive thread for Hiranandani Upscale OMR project. Thought of creating one so that we can follow the developments, Rental yields, Issues and other topics.

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  • Thanks! I agree to keep all discussion in one place, I hope Hira marketing folks in this forum will cooperate and divert prospective buyers to this thread so that it will be easier for me to take on these marketing agents in one place instead of fighting with them on multiple fronts :)
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  • Originally Posted by k11
    Professionally run service apts and short term rentals might not experience high degree of cannibalization with regular apts. If Hira starts service apts, it will not be less than 75K-1L/pm for a 2-bhk and 40-50K for 1-bhk. These service apts will not affect the 25K long term 2-bhk rentals. Completely different price bracket, different service levels and different customer.

    Taj hotel also runs service apts. There are many other examples in city. They do take away some business from hotels.

    OMR might face a rental glut, but Hira would still be on top of any renter's list in the Siruseri area.


    How can you compare Taj hotel in heart of city with an apartment in remote suburb?

    Correction: Hira's rental is not 25k for 2 BHK but 25k for 3 BHK of size 2000+ sq ft size.

    Your statement that Hira's one bedroom service apartment will fetch 50,000 pm is just a pure conjecture. I doubt if anyone will pay such high amount when there is such an enormous glut on the supply side. They would rather take for rent a 2 BHK normal Hira upscale unit for 15k per month. Also service apartments will pull away corporate demand from regular rental units for sure as corporates can book units in just-in-time basis and no longer have to permenantly keep a unit ready for temporary relocated staffs.


    I agree Hira's Rs 10-15 psf rental is better than Rs 8.5-10 rental of Mantri or L&T Eden park, but what about the yield? Hira's cost of ownership is way higher than difference in rental amount? Does it make investment sense to buy a Hira apartment instead of a normal high-end apartment in same locality? A old 2 BHK apartment in city will fetch better rent than Hira upscale for much lower price.

    There is a deliberate effort to market Hira as better than other apartments by stating that they'll fetch more rent. The truth is slowly coming out in the form of rental ads.
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  • Below data from L4L is a noise or an outlier in statistical terms (taking one or two ads or neighbor whispers without proper qualifiers). Rental values differ for sizes and level of furnishings. Its not worthy of any discussion and let alone, a bad start for a new thread.

    Usually, politicians have a team to pick such outlier data for stage speech to gain a brownie point against the grain. This is no different.

    Mav
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  • Mav,

    Nothing personal, I don't have any issue with people buying Hira upscale unit purely with end use in mind. There is nothing wrong in anyone aspiring to lead a kingsize lifestyle.

    I'm merely wondering if it has any investment value. If someone spends crores to buy an apartment and rents it out for 25,000 or 35,000 pm, it is suicidal.

    I agree there is an opportunity to tap high end rental market, but can all thousands of owners do so? Considering other copy cat projects like Akshaya Abov, Olympia reflections, etc.. posing direct competition. Hira themselves won't lose opportunity to tap the high end rental market, they'll surely build hotel and service apartments targeting them.

    Also Chennai is not a financial hub, leave alone Siruseri. High end tenants are going to be limited unlike Mumbai or Delhi.
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  • Hira upscale

    L4L, Again & again your are giving wrong information.Please tell me in which tower of phase 1 Hira has 2000 + sq ft of 3 BHK.THE MAX SIZE IS 1759 SQ FT.Also let me know where did u find 3 bhk for 25 k with Hira???Please provide correct info.In case if u r not sure plz dont give wrong info.
    Also note, as more & more people take delivery, for sure you will find more rental postings.
    Originally Posted by Love4land
    How can you compare Taj hotel in heart of city with an apartment in remote suburb?

    Correction: Hira's rental is not 25k for 2 BHK but 25k for 3 BHK of size 2000+ sq ft size.

    Your statement that Hira's one bedroom service apartment will fetch 50,000 pm is just a pure conjecture. I doubt if anyone will pay such high amount when there is such an enormous glut on the supply side. They would rather take for rent a 2 BHK normal Hira upscale unit for 15k per month. Also service apartments will pull away corporate demand from regular rental units for sure as corporates can book units in just-in-time basis and no longer have to permenantly keep a unit ready for temporary relocated staffs.


    I agree Hira's Rs 10-15 psf rental is better than Rs 8.5-10 rental of Mantri or L&T Eden park, but what about the yield? Hira's cost of ownership is way higher than difference in rental amount? Does it make investment sense to buy a Hira apartment instead of a normal high-end apartment in same locality? A old 2 BHK apartment in city will fetch better rent than Hira upscale for much lower price.

    There is a deliberate effort to market Hira as better than other apartments by stating that they'll fetch more rent. The truth is slowly coming out in the form of rental ads.
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  • The advertisement came in Hindu property plus dated 15Dec'12. Here is exact text:

    "Hiranandani semi furnished 3 BHK 15th flr, 25k fixed"

    There is no mention of tower, I assumed unit size must be 2000+ sq ft.

    What is the smallest 3 BHK unit size? This would help calculate the rent per sq ft range.

    Also this is the amount owner is asking, the final negotiated price may be lower than this.


    There are few more rental ads but this is the only one with expected rental amount.

    The last time I saw a rental ad with expected amount specified was on 03'Nov. It was for 2250 sq ft sea facing top floor unit. The owner was expecting 45,000 per month.

    In both cases I find the rental yield very low. If this is the situation today, I don't see much hope in the coming years as more and more supply comes up in OMR.

    I see a grim picture for all projects, including my own investment in Sobha Meritta and not just Hiranandani upscale.
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  • There is no mention of tower, I assumed unit size must be 2000+ sq ft.
    Above is ludicrous. When one presents the data and concludes, should the above base be covered at the minimum? One should avoid discussion on his rental comparison like a plague and allow L4L to extend his flushes. L4L's intent is loud and clear. L4L has no respect for meaningful data nor its credibility.

    What is the smallest 3 BHK unit size? This would help calculate the rent per sq ft range.
    Above is gall. You already concluded with half-baked and ill-intended data and when confronted you pose the question back to them asking for the real data? It can't get more ridiculous than this.

    Mav
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  • Dear Mav and L4L,

    At this stage, the point is not the accuracy of the numbers but the fact which is attempted to justify using the data. My take on this is summarized as follows
    1) Is Hiranandani expensive?- yes it definitely is and is of premium market
    2) It is worthwhile to invest in it if we are intending to live there presently or in near future (say few years from now). In that case, we can rent it out for few years without worrying much about its returns.
    3) Is Hiranandani a pure investment project? i.e we intend to invest only hoping its rental benefits and resale value? – this am not sure and agree with L4L that we may not have that much demand for high rented buildings in Chennai , that too in Hiranandani area..Its too early to predict resale worth as the trend of RE is in transition stage, where people actually start focussingon brands. In 2007, we never cared about amenities or builder, as long as the requirements are met and if the documentation is right, ppl were happy. Now its different. So I think its difficult to project the brand value and resale value now.
    4) For NRIs and ppl outside Chennai, Hira is definitely an attraction as the transactions is easier, whereas the resale or other smaller projects (which are the best options for investment point of view) is difficult to scout when we are physically away from city.
    5) To conclude, So I think Hira may not be the best choice only from investment point of view. Now the next question is, are there other equivalent or better choices in the vicinity and budget.. ?? Am sure about the budget that we can get many choices in that range. So the question now boils down to specifics.. If you are interested only as an investment, what do u need to consider? Locality? Amenities? Rental etc?
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  • You are absolutely right, if someone is looking at purely investment and rental return perspective, I think reasonably reputed builder projects nearby Hira would be better at this state. Eg, XS Real Siena. They offer better UDS, no EWS units, sea view and better rental return.

    Olympia reflection, though not launched yet, also looks impressive. It is a real sea front property on ECR unlike Hira upscale which is a backwater apartment complex. Pricing is expected to be 4000 psf if I'm not wrong.

    I'm sure there are several other similar projects which offer better investment returns (Olympia Opaline, TVH Ouranya bay, etc...).
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  • 3) Is Hiranandani a pure investment project? i.e we intend to invest only hoping its rental benefits and resale value? – this am not sure and agree with L4L that we may not have that much demand for high rented buildings in Chennai , that too in Hiranandani area


    Accuracy of the rental data is important when you are comparing with other projects like what L4L did and form conclusions. Rental return is an important component that decides the investment value besides other things.

    How does one measure the rental return? By 2 BHK or 3 BHK or 4 BHK? No. It should be measured by psft for most. It is only one side of the equation still. For lifestyle apartments like Upscale, the icing is on the furnishings. How does reading few ads and hearing neighbor whispers can help in the above? Allow for critical mass to settle in before forming any meaningful conclusion.

    Upscale is a different kind of investment even among apartments. Closest analogy is horse breeding. Racing horses are different breed but owner plays a significant role to play to get the best performance. If high investment is the recipe for high returns, why is that we don't hear many MAM Ramaswamys in the field? There are other kinds that saunter around in Marina beach - less risk and get you what you invested for.

    Upscale is like a race breed and it is a high investment, high risk and high maintenance and for those who believe they can get the desired performance are trying it. Those who had expertise in Marina kind and ventured into race breed thinking it is still about horse after all, will be in for a surprise - they may not have a clue about performance. Some horses can turn out to be dud as well. It is a high stake game.

    But, with few ads and instances without details, we may be comparing the performance of race breed in the hands of a Marina trainer for all we know:). Good judgement does not come from great thinking alone but also comes from stop judging when the data is still not ready to form conclusions.

    Mav
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  • marketing talk.
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  • Your bashing on Hira by providing wrong facts and incorrect information repeatedly has been established in this thread. Your noose is tightening and avenues for flushing is shrinking. Being truthful and honest is the only way to come clean.

    Mav
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  • Nice punch dialog fit for an action movie.

    Going by your analogy, Hiranandani in Powai is race horse in turf ground.
    Hiranandani in Navalur is race horse in beach sand. No matter how good a jockey you are, you can't make it gallop on ankle deep sand
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  • Your noose is tightening and avenues for flushing is shrinking.


    The umpire here plays clean game, everyone knows the umpire over there and I don't care about my avenue shrinking. As long as there is atleast one fair play arena, I'm happy.
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  • Dear Maverick,

    Please throw some light on the following aspects..

    First of all, I completely agree with you on the value for money from Hiranandhani interms of quality construction and brand and better rent potential (again related to brand).

    If we are talking about the Hiranandhani in powai or thane, I will not even discuss about it as the demand for high quality society is evident.

    If you consider OMR or GST road, we all know how many projects are being flooded with. However, the no. of companies or number of employees in OMR does not grow in the same rate as the houses.
    Among the employees in OMR, the high profile employees form only a portion and among them if they have long term plans in Chennai, they easily can afford a home of their choice rather than paying high rent. So that restricts the potential tenants only to high profile people, who do not have long term plans in Chennai. In addition to that companies can directly rent few apartments as quarters, or temporary acoommodation for their visitors etc., which again could be a small percentage. As a theoretical hypothesis, if all the Hira apartments are let out for rent, will there be sufficient demand for it?
    So the value proposition of Hira projects purely from rental point of view is something which am not comfortable to buy with. Again, that’s my personal choice and am not dissuading anyone to take the calculated investment option of Hira.
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