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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  • Actually many luxury complexes in India have high maintenance charges.
    Hira is actually mid grade. I do not know about Seagull, most of Hira Powai is nominal.
    Hira Upscale still has 2.5rs on paper.

    If you want to see luxury you guys should visit DLF projects.
    DLF Aralias and Magnolias are crazy, I have not seen nice facilties except in foreign countries.

    Lodha Belleza in Hyd is probably the most luxurious in S India among what I have seen.
    Maintenance there was supposed to be 25K three years ago, don't know what it is now.

    Chennai city projects under construction like Vertica, DLF CC will have better facilties and higher charges than OMR ones.

    There are people who make several crores a year. So it is all relative.
    Look at how many luxury cars on the road. You should have seen an insurance quote for an ordinary Merc E-Class/Jaguar XF.
    So lets not make an assumption that nobody can afford.
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  • You are right K11, exactly the same point. If it is not affordable then no restrictions. You will get plenty of option in and around OMR area.


    Originally Posted by k11
    Actually many luxury complexes in India have high maintenance charges.
    Hira is actually mid grade. I do not know about Seagull, most of Hira Powai is nominal.
    Hira Upscale still has 2.5rs on paper.

    If you want to see luxury you guys should visit DLF projects.
    DLF Aralias and Magnolias are crazy, I have not seen nice facilties except in foreign countries.

    Lodha Belleza in Hyd is probably the most luxurious in S India among what I have seen.
    Maintenance there was supposed to be 25K three years ago, don't know what it is now.

    Chennai city projects under construction like Vertica, DLF CC will have better facilties and higher charges than OMR ones.

    There are people who make several crores a year. So it is all relative.
    Look at how many luxury cars on the road. You should have seen an insurance quote for an ordinary Merc E-Class/Jaguar XF.
    So lets not make an assumption that nobody can afford.
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  • Originally Posted by Arunag
    Sr,

    Are you planning to put your money in Hira/Luxury apartment ?


    absolutely not as an investor
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  • Originally Posted by Arunag
    You are right K11, exactly the same point. If it is not affordable then no restrictions. You will get plenty of option in and around OMR area.


    Like i said, the question is for a tenant not an end use owner
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  • Sr

    Please pay attention to my post # 285

    Originally Posted by SRajagopalan
    Like i said, the question is for a tenant not an end use owner
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  • Hira Powai is an up and running commmunity. It is the number one choice for renters in that region, very popular among expats.

    Capital values there are three times that of Upscale Chennai. Rents should also be higher.

    So maintainance charges should also be similar for the complex here.
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  • Comparison between Powai and Navalur is not right, former is financial nerve center of nation while latter is just a cheap IT offshoring location.
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  • Friends,

    I am actually surprised with most of you talking about HIRA for end-use. Lets start by asking how many percent of the owners in HIRA are chennaites? If its in minority, then where is the question of end use?

    In my opinion, buyers in the segment which HIRA targets are least bothered about tenancy, maintainence cost or let alone living there. Most of the buyers are HNI's and NRI's who have parked their money because of HIRA past success or on behest of wealth management companies recommendation to keep a part of their portfolio in RE.

    Buying apartment in HIRA is like how one buys shares in a blue chip company.Their aim is capital gains not rental returns. HIRA has always been a investor's paradise with the builder only focussing on creating more capital value for people who have invested and kept faith in them. As long as they have the reputation and credible track record, they will continue to attract investors who will keep shelling out more and more to compensate the low tenancy or increasing maintainence cost.

    In simple words, if you are a working salaried professional looking to take a loan to buy a home at HIRA or someone who is going to invest all your wealth in HIRA. My humble request is please dont get convinced thinking the rent being quoted/promised will service the EMI or provide post-retirement pension and better lifestyle.Be prepared and take into account the increasing cost of ownership one has to bear with the purchase.

    HIRA have just completed with their phase 1 construction. Hope they have some plans to attract tenants also. In coming months, it will be clear how chennai which mainly comprises of conservative and cost-conscious middle/upper middle class people receive it.The real test for HIRA lays ahead.
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  • End User or Tenancy is a matter of how one wants to pay for the goods. Rental + Maintenance charges as a bundle settle at prices commensurate with the capital cost. It is analogous to buy/lease decision every company makes regardless of the *affordability*. It is a matter of best use of the capital and ROI adjusted for depreciation and taxes for a specific situation.

    In an efficient market where there is no tenancy absorption issue, the difference between renting/ownership in terms of TCO/ROI will diminish.

    Those who know the total cost of ownership of owning a BMW 5 series over the life cycle will never make a financially unwise decision of owning one just to enjoy the pleasure of driving the "Driver's Car". There are more smarter ways to enjoy the same if your specific situation allows it. There is an increasing and sustained trend among people, if it is for end use, do not look for ROI or work the numbers and just throw the money at it - for it will be up for sure in the next few years. When you get a chance, ask your Merc or BMW dealer how many really buy it up front for the end use and how many leases?

    I am failed to see any reason why tenant will not pay higher maintenance - for the tenants, the total cost of renting is what they pay to the owner and to the builder for maintenance. Added together, if it makes sense to rent the luxury they will. The point is, higher the maintenance and if the perceived luxury do not measure up, rentals paid to the landlord will take a hit. Needless to say, over the long term, capital value gets adjusted to this.

    Mav
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  • Sundar,

    Actual Maint is 2.5 but by many inflated to 10-12 without basis and many are forecasting to 20-25 also towards Maint. Hence I just put a good figure of 100 towards Maint!!!

    While one forecast Maint of 20-25 , he does not agree to digest Rental of 40-50 which is double.

    As such maint is 2.5 per sqft for next 18 months and it is for Individual tower to decide how to cut down the costs downwards , mange at same level or at bear minimum extra level around the figure of 2.5

    Then Tennats as you rightly said may not get attracted with High maint when plenty are available around in OMR but there are segments of tenants like buyers to chase this Project.

    As Mav said and per my observation, there are plenty in sideline who have not invested here waiting to opt for Rental route which is way far better than Investment for them with much savings by way of Interest. Only issue is LESSEE will loose the Capital Appreciation and LESSOR will loose the differential cost between Interest on Capital deployed - Rent Received every month until he gets a BEP where in either Capital Appreciation or Rent Appreciation would compensate his loss.

    Always lesser the Maint, More the Tenants Attraction but no one can guarantee how this lower Maint comes with Comforts they require atleast to bare mimium level?

    Comforts do not have Costs associated with and carry any Price tag for those who need and Necessity is definitely have cost and Peice tag attached with it.

    What is applicable for whole world and community is applicable for all of us . Nobody is going to stop using Cars when Fuel price cross 100 per ltr and stop smoking cigars when Govt levies hefty duties and taxes.

    Originally Posted by sundarjp
    Ravi, as an end user, i will be ready to spend even 10 rs/sqft as maintenance charge becoz I know what to expect. But as an tenant, will they be ready to spend remains the question which I hope we will know the answer in the near future.if a tower has 25% end users & 75% tenants, do you reakon everyone will think on similar lines w.r.t amount to be spent on maintenance.
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  • I suspect Hira's fate will be similar to TNHB Sholinganallur layout where lot of VIPs bought plot but didn't bother to construct houses for a long time. Last time I visited it was just a barren landscape with TASMAC customers loitering around.

    We'll know in a few years if it will be a ghost town or otherwise.
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  • Originally Posted by k11
    Jersey City, $1500 is not a skyscraper for sure.

    It is more like old dilapidated building in a bad location.


    No it was a sky scrapper - Thomas Jefferson Tower hosting some 26-27 floors or so...I used to watch beautiful WTC everyday without hinderance ! You do not get such view even in Manhattan!!!

    Only problem was Car Parking was nearly $300-$400 per month.
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  • Ramchi,

    I hope that is long back, area mentioned is New port and the rates are so high now and crossed 2.5 k. More over TJ is not an luxury apartment. Now they started rent like mansion where in which in a room 5 - 6 bachelors will stay or 900 per head


    Originally Posted by Ramchi
    No it was a sky scrapper - Thomas Jefferson Tower hosting some 26-27 floors or so...I used to watch beautiful WTC everyday without hinderance ! You do not get such view even in Manhattan!!!

    Only problem was Car Parking was nearly $300-$400 per month.
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  • I hope it will not be like your assumption L4L. Check for their international school admission rate there.

    Originally Posted by Love4land
    I suspect Hira's fate will be similar to TNHB Sholinganallur layout where lot of VIPs bought plot but didn't bother to construct houses for a long time. Last time I visited it was just a barren landscape with TASMAC customers loitering around.

    We'll know in a few years if it will be a ghost town or otherwise.
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  • I too suspect Sobha located in deep forest in V- K where many anti social activities are going on while TASMAC generates Revenue for Govt. I wonder why one visited Shol TNHB layout without Investment interest that too coming from far away place by wasting time and energy. Height of frustration.

    Any referral commission exceeding more than 1% from this layout comparing to Sobha raises my eyebrows .Many agents are getting pooped up and raising voice .
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