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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  • Hira has a brand value and no one can deny that. However whether this would help them to sustain their price rise every other month going fwd remains the question. You can't justify their price rise in relation to construction/materials cost.
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  • I really don't understand why they have to justify their price increase in relation to construction cost. They only have to justify their price increase to their sales and management teams, and their shareholders. Hira is a brand. They believe they can sell at their quoted prices, and more power to them if they can indeed achieve sales at that rate. I'm sure all the people who have booked in Hira are happy as the value of their apartment is going up automatically without them having to do anything.

    That being said, I still think they will hit a ceiling soon, when sales start to dwindle. Whether this happens at 10000/sqft or 15000/sqft is anybody's guess.

    Hira is in a class of its own, and is going to define OMR's skyline for the next couple of decades. I personally love Hira on three fronts - aesthetics, capital appreciation and quality, but I cannot afford it today. :) To all those who invested in Hira at 3000/sqft during the launch, I tip my hat. Enjoy! :)

    Originally Posted by sundarjp
    You can't justify their price rise in relation to construction/materials cost.
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  • Amen

    the law of demand pricing
    10k,15k,20k is all relative as long as HIRA can attract what i call a
    WILLING AND ABLE BUYER to PROCURE THE PRODUCT

    No one can stop it, but the moment those buyers are not there, trouble starts
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  • But do you agree Sr, Investing in Upscale or resale will yield the good numbers. Only thing is that these are different instruments in RE market. Entry is the key and location
    Originally Posted by SRajagopalan
    the law of demand pricing
    10k,15k,20k is all relative as long as HIRA can attract what i call a
    WILLING AND ABLE BUYER to PROCURE THE PRODUCT

    No one can stop it, but the moment those buyers are not there, trouble starts
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  • Where Hira shines is, that it is the only choice in the 1.2C - 2C, 3-bhk mid-luxury market.

    None of the builders in OMR operate in the mid-high end market for 3-bhks.
    Everyone does low end apts.

    In the 5C+ bracket, Akshaya and Olympia has some competition.
    But nobody wants to get in under that.

    So I do see takers for Hira even in future, just because there is no other option.


    Update:
    Actually this is the only project in the suburbs in that range as project selection in suburbs outside of OMR sucks.

    Well there are more choices in City for bit more money, 2C is low for city. I can easily point out 3-4 options for around 3C budget.
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  • Exactly! As long as there is demand the seller is going to keep increasing his price, he'd be a fool not to.

    Think of Chennai auto drivers refusing to put meter.

    Originally Posted by SRajagopalan
    the law of demand pricing
    10k,15k,20k is all relative as long as HIRA can attract what i call a
    WILLING AND ABLE BUYER to PROCURE THE PRODUCT

    No one can stop it, but the moment those buyers are not there, trouble starts
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  • Originally Posted by Arunag
    But do you agree Sr, Investing in Upscale or resale will yield the good numbers. Only thing is that these are different instruments in RE market. Entry is the key and location


    yes but at current price levels it does not appeal to me
    i may be totally wrong or off, im consideirng and looking at other options which appeal and look more promising to me than HIRA at this time ( im not talking land)
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  • Have been searching for resale route at attractive price ( lower than builder at least by 500 - 1000 along with transfer fee of 500 to sellers account ) so that best deal can be done but not getting anything or clue since builder started firing bullets left and right for last 6 months and will gyrate to bas erase of 8000 shortly .

    I could not get any HNI investor to offload rather I could see them putting costly fittings,furnitures,furnishings by seeing what other owners did or through their channels with heavy taste.

    What happened in 2009-2011 in resale market did nit happen or happening is the truth.

    As Arunag pointed honestly or innocently, what prevents other builders to hike or hijack price like Hira in OMR or close vicinity including Opaline ,Add Albatross is the matter of concern or subject matter of discussion to be discussed before inspiring in toto .

    Leave alone the brand value, technical matters and Investment climate .

    Originally Posted by rameshyahoo
    Resale has not stopped. One can easily go thru brokers and find resales. Hundreds of mumbai investors are waiting to get out and hira as attached a 500 rs per sq ft transfer value which is bound to get hiked in near term. Discount that value from the return, plus the high interest rates and opportunity loss of fixed deposits. This is a sure shot loser. Except for end use at sub 5000, this project makes no sense. Investors can easily buy any of the dozens of projects in fairpro and get a good yield. Hira has priced itself out due to its shortcomings.
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  • Hi Ramesh

    Since you mentioned there are hundreds of investors who want to get out , i am sure maybe you know atleast a few of them who want to sell. Please forward me more information about them as I may be interested. Looking between a 2 BHK or 3 BHK.

    Originally Posted by rameshyahoo
    Resale has not stopped. One can easily go thru brokers and find resales. Hundreds of mumbai investors are waiting to get out and hira as attached a 500 rs per sq ft transfer value which is bound to get hiked in near term. Discount that value from the return, plus the high interest rates and opportunity loss of fixed deposits. This is a sure shot loser. Except for end use at sub 5000, this project makes no sense. Investors can easily buy any of the dozens of projects in fairpro and get a good yield. Hira has priced itself out due to its shortcomings.
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  • Hira's pricing strategy is to go in tandem with inflation (as confirmed by their sales team)- minimum of 10-15% hike every year. Contrary to popular belief- price is long way to go before it plateaus; next bout of hike will start when commercial activities pick up.

    Hira Powai hovers around 25k/sq ft; where as in Powai one can get apartments sub 15K, so there will always be premium of 20-50% to market rates due to lack of infra outside. With respect to VFM- it depends, I didn't bite the bullet in 2008-09 as there were better investment avenues (Land), but Seagull is attractively priced today with CLP.

    On pricing within the township as pointed- Sea facing will always command premium. Their business strategy is slow and steady, they are looking at realisation of 3000cr from three of their signature towers (Horizon and Villas in Bangalore and Seagull- Chennai). I rate OMR better than Thane (prices in sub 10k/ sqft) in long run.

    Today end-user or investor is spoilt for choice in OMR/GST, but when you want to move high spec/ township- there isn't much choice, atleast today (Estancia and Olympia long way to go). It may not be affordable for FTB, but for end use I would recommend without inhibition.
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  • Originally Posted by k11
    Where Hira shines is, that it is the only choice in the 1.2C - 2C, 3-bhk mid-luxury market.

    None of the builders in OMR operate in the mid-high end market for 3-bhks.
    Everyone does low end apts.

    In the 5C+ bracket, Akshaya and Olympia has some competition.
    But nobody wants to get in under that.

    So I do see takers for Hira even in future, just because there is no other option.


    Update:
    Actually this is the only project in the suburbs in that range as project selection in suburbs outside of OMR sucks.

    Well there are more choices in City for bit more money, 2C is low for city. I can easily point out 3-4 options for around 3C budget.


    Bull's eye. I would stretch the range to 4Crs (all inclusive rates) and simply there isn't any choice.
    It's pity and Chennai deserves many more projects like these. Projects inside city may be available at same cost, but simply no match- except for locational advantage.

    Skyvilla RTM comes around 6 Cr today (still one flat (8th floor) left for sale).
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  • Olympia actually has better location than Hira. Sky villa used to be 2.6C during launch.
    Don't know why they stopped with SkyVilla.

    Their regular apts are pretty f-ugly as well.

    They could have made a luxury phase and made some nice fully fitted luxury 3-bhks around 2000sqft and priced them at 1.5C. I feel 1.2C-2C is the sweet spot.
    What a waste of premium location.

    TVH does not know anything better they are stuck in mid segment. Hope they make Q good.

    Well, I hope our local builders like Vijayshanthi, Chaitanya or Vishranthi do get some land and put up a nice luxury tower with Sea View and hope they take advantage of this huge gaping hole which Hira is operating without competition.
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  • Sea-view is sought after world-wide. Olympia, TVH, Neelkamal- goofed up big time (hope Albatross and Akshaya get it right), they don't seem to realise the worth of what they had in hand; they could have given Hira run for their money. IMO even Sky Villa isn't given due locational advantage. Hira's project in Bangalore didn't create flutter like in Chennai- thanks to land dispute and strong local builder base and projects.

    As pointed high spec requires large flat size, typically BUP 2500 sq ft + to focus on aesthetics and design. As and when it happens we will see more migration from city to sub-urb.

    Update:

    Seems Prestige is launching couple of projects- one with the name, Seashore (it's interesting to note they own less than 30%, signs of desperation in Chennai? ) . http://www.indianrealestateforum.com/bangalore/t-16-new-projects-bangalore-prestige-fy2013-14-a-49895.html
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  • 30% share in JV need not be considered as sign of desperation. They may want to tread cautiously or land owner may have been a hard nut to crack, we don't know for sure.

    XS is continuing to offer hefty discounts for their luxury sea view apartment in Padur, does that mean their venture was a failure? They may just be trying to mop up as much cash as soon as possible. Interpreting data is tricky.
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  • K11

    Why Olympia being close to Hira sorry even much before close to Hira did not plan or rather copied their strategy is the matter really to be inspired .

    They wanted to build for certain levels , created skyline villas in between and villas in other stretch . Why ? Please see what is in between and front .

    2 towers have pvt lands in between in right side .they may setup tea shop or anything . Front side is having immovable tiny houses which is very difficult to change the perspective.

    They could have got 28 floors like Hira by altering master plan but did not care to do so .Why?

    Reasons are different and serious but still they are suffering to sell at 4K level and vacate site . You know the reason I believe. Their aim is to construct as what they have initially planned at the target price by including various sub contractors for each tower which deterred many investors and buyers in toto.

    They could have very easily converted the skyline like structure with higher floors with vantage location but failed to do so in front of Hira but Add Albatross is coming with guts to challenge

    This is where the competency come into play rather than competitiveness


    Originally Posted by k11
    Olympia actually has better location than Hira. Sky villa used to be 2.6C during launch.
    Don't know why they stopped with SkyVilla.

    Their regular apts are pretty f-ugly as well.

    They could have made a luxury phase and made some nice fully fitted luxury 3-bhks around 2000sqft and priced them at 1.5C. I feel 1.2C-2C is the sweet spot.
    What a waste of premium location.

    TVH does not know anything better they are stuck in mid segment. Hope they make Q good.

    Well, I hope our local builders like Vijayshanthi, Chaitanya or Vishranthi do get some land and put up a nice luxury tower with Sea View and hope they take advantage of this huge gaping hole which Hira is operating without competition.
    CommentQuote