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.

Happy forumming

be the change you want to see in the world :)
Read more
Reply
1826 Replies
Sort by :Filter by :
  • Rs. 350.00 per sq ft. So, base price is Rs 5050. It seems to be good deal, but it won't last long. Because, in another few months, completion of foundation would be completed, anyway, we need to pay 10%.
    CommentQuote
  • As per Master plan (not the complete plan, from the brochure, I got from HUS),
    Amalfi will be positioned behind Seagull and Marina and Tiana will be behind Bay View and Seagull. Banquet hall will be constructed opposite to Amalfi. Banquet Hall will be only few floors. So, it will not block the Amalfi. Octavius is in other side of Amalfi, so it will not block the OMR view of Amalfi. Commercial towers may block the OMR view of Amalfi 3BHK flats
    facing club side.
    CommentQuote
  • @Pav: It depends on your floor rise. But, it's too early to speculate now- even Hira team may not be aware on their plans.

    Here's the update I have- when I met a senior Hira guy from Mumbai in an event (6 weeks ago) and subsequent onsite visit few weeks back :

    Amalfi foundation work may start by 1st quarter (2014). No plans to start commercial constrution for next 5 years due to economic sentiments.

    Resale market (phase 1) is virtually on standstill, but new towers weren't that bad.

    Seagull: Hira had segregated Wing A and B as two different towers for construction and booking (cost) purpose. They will kickstart only wing-A and all investors who booked in Wing B are given a choice to migrate to Wing A (Wing B will have a lag of 3 years). They are still hopeful foundation work will start by last quarter of 2014 (IMO it may be 1st or 2nd Q 2015). No change in floor plans. Bookings are mixed, but they appear to be content and as expected (still much less than 50) and believe it or not, 2 duplexes (8Cr starting price).

    Phase 1- club house, swimming pool (final patches) and tennis courts works were ongoing!

    They may launch studios in Powai for 27k/sq ft soon.
    CommentQuote
  • Originally Posted by REC2013

    Hira makes all the investors happy at the end of the day by increasing the wealth with solid value addition and quality is the essence of this post but " Do not buy when it is under construction uptil 50-90% is over " is the warning of this post too for the investors who do not have staggered payment plan or option


    Definitely quality is impeccable but on the other hand it is required to sustain such high rises. The apartment is going to depreciate over time and the only thing impeccable Quality is going to do is make the depreciation factor to a lower number.

    Coming to Solid value addition, Just because Hira is increasing every month or quarter does not signify solid value addition. There are notional in nature and until realized is just an trend not an reality.

    For reality sake can you substantiate the value addition process based on present and future values and not bring past purchase price into quote.

    Amalfi selling at 5400 per sq ft with 4 years waiting time + 1 year buffer. Total cost at the end of 5 years comes to

    5400 + Floor Rise Charges + Other charges (Tax, amenities etc) + Finance cost

    A --> Considering total cost at 6000 per sq ft + finance cost at avg 6% due to construction linked payment comes to 7000 per sq ft post 5 years.

    In order to call it as value addition post 10 years it has to be inflation adjusted. Keeping inflation at around 8%

    Finance cost post delivery from 5th to 10 th year

    B --> Finance cost at actuals for later 5 years (Say at 9%) - rental income (Say 15 rs per sq ft per month) = Works out to 300 per sq ft


    Inflation factor for 10 years to derive profit

    6000 per sq ft + 5% for first 5 years (Avg int rate due to CLP) + 9% for later 5 years works out to 5094 per sq ft

    Total cost at 10 years = A +B +C = 12394 per sq ft

    Finally say by way of IT benefit I save 30K per year because of investment. I will just round the total cost to 12000 per sq ft. Add on transfer fee of 500 per sq ft + applicable tax consideration etc.

    In order for one to break even post 10 years one has to atleast sell the flat at around 12.5K per sq ft after factoring for depreciation. In case of solid value addition it has to be even more?

    Hira usually jack up the prices and surrounding area also follows the trend. But in case of chennai the trend has failed to happen. Prices post shols are more of less saturated and builders are coming with all freebies to attract new customer.

    If this trends continue it will be a tough profitable resale for apartments post shols as inspite of lower demand supply is not showing signs of weakness.

    Correct me in case if you see anything wrong in my thoughts?

    Note: I have considered people opting for 80% loan through FI's.
    CommentQuote
  • Ultimately how many towers/apartments are planned in this project?
    CommentQuote
  • Originally Posted by Clairvoyant

    Bookings are mixed, but they appear to be content and as expected (still much less than 50) and believe it or not, 2 duplexes (8Cr starting price).



    8 cr per apartment! Are these the most expensive in Chennai (outside of CBD) right now or that record is beaten by projects like Akshaya Abov or Olympia sky terrace?
    CommentQuote
  • Originally Posted by lovebirds43k
    Ultimately how many towers/apartments are planned in this project?


    This says it, But can change as well

    Egattur OMR Interactive Walkthrough
    CommentQuote
  • Because of Inflation and current rupee exchage rates, many NRI's would find the India property to be cheap.

    6000/sqft is around $92/sqft.
    Even 5 year staggered cost of 7000/sqft is $107/sqft.

    For a 30-40 storey building, with decent amenities (even if you call this basic on international standards), it does not look bad on Value for Money aspect.

    @Srivat, your analysis looks good.

    Only factor is we still do not know the inflation. 2013 prices would have been unbelievable in 2003.

    I still beleive that land prices can stagnate but construction costs do not. I see construction costs to beat inflation easily. Remember many materials are imported. 20-25% increase in construction costs is nominal number. When you apply that, you might get a different number. The 7000rs figure in 5 years will be just construction cost built in.
    Now the 6000rs has 3500 as construction cost, and 2500 as margin/land cost/etc.
    10% increase in construction cost (applied quaterly over 5 years) will give us 5750rs. Which is close to 82% of the money paid at end of 5 years, 7000rs. Does it look bad?
    You will get crazy numbers if I put 20% annual increase.

    I do feel, Hira make sense on end use perspective.
    Hard for people to see the value sometimes on projects like these.

    If the market is bad, the builders will work with less margin. Hit is to their pocket.
    Anyone buying in the suburbs are betting on construction costs, inflation, interest rate adv due to staggered payment, the land compenent cost is minimal.
    CommentQuote
  • A simple calculation on inflation adjuster throws this:

    What cost Rs. 6000.00 in 2013 would cost Rs. 14204.17 in 2023 which is an increase of 136.74%.
    The average yearly inflation for 2014 - 2023 is 9.00%.

    Source: http://www.yetanothersite.com/inflation-calculator-for-india.htm#resultsA

    CPI always hovers around double digit in India. I reckon valuation on Rs will never throw true picture, need to measure in purchase power parity (rental income has no inflation component :-) ). Don't be surprised if we discuss hyper-inflation challenges in less than a decade- with all QE funds stashed around.

    How about other qualitative factors like saving in fuel for school drops, Gym, retail etc..?

    I'm not sure about ROI components, but value proposition of a product should also incorporate intangibles.
    CommentQuote
  • Originally Posted by Love4land
    8 cr per apartment! Are these the most expensive in Chennai (outside of CBD) right now or that record is beaten by projects like Akshaya Abov or Olympia sky terrace?


    When I look back at my quote it was even cryptic for me to follow (was in a state of trance after Ilayaraja's show :) ).

    What I actually meant was- Hira managed to sell 2 duplexes at 8 Cr a piece. Olympia Skyhomes (6600 sqft) or Abov (6000 sqft) should be in similar category.

    But I doubt on areawise, there are no comparable flats available at 8000 sqft . It must be the largest flat AFAIK in Chennai.
    CommentQuote
  • City does have some large apts in Nungambakkam, Alwarpet and some other areas. But not on a high rise.
    I have personally seen a 5600sqft unit on one floor plate. One of my friends in college had a huge home in Adyar.
    Easy to get lost especially when it is on one floor.

    But 8000sqft is just over the top.
    There is no comparison for those.
    CommentQuote
  • Originally Posted by Clairvoyant
    When I look back at my quote it was even cryptic for me to follow (was in a state of trance after Ilayaraja's show :) ).

    What I actually meant was- Hira managed to sell 2 duplexes at 8 Cr a piece. Olympia Skyhomes (6600 sqft) or Abov (6000 sqft) should be in similar category.

    But I doubt on areawise, there are no comparable flats available at 8000 sqft . It must be the largest flat AFAIK in Chennai.


    Hi,I was told that ABOV got about 12 bookings so far!!But i doubt that!May be by the land owners as its a joint development!
    CommentQuote
  • Originally Posted by Clairvoyant
    A simple calculation on inflation adjuster throws this:

    What cost Rs. 6000.00 in 2013 would cost Rs. 14204.17 in 2023 which is an increase of 136.74%.
    The average yearly inflation for 2014 - 2023 is 9.00%.

    Source: http://www.yetanothersite.com/inflation-calculator-for-india.htm#resultsA

    CPI always hovers around double digit in India. I reckon valuation on Rs will never throw true picture, need to measure in purchase power parity (rental income has no inflation component :-) ). Don't be surprised if we discuss hyper-inflation challenges in less than a decade- with all QE funds stashed around.

    How about other qualitative factors like saving in fuel for school drops, Gym, retail etc..?

    I'm not sure about ROI components, but value proposition of a product should also incorporate intangibles.


    :). I wanted to be as close to real. Since it is an UC apt I wanted to give discount for CLP rather directly adding inflation.

    GYM almost all apt has these days. Even the one half of the price provides. Retails in the sense departmental stores are phone call away and school still i can get in a place which has its own school or nearby apartment which is walkable. Qualitative factors definitely carry a goodwill but not that it is not possible through other means.

    @K11

    Even for end use, The motto of investment is finally profit. This is the asset you can count on during need in ones distress time. SO being end use is just an excuse I feel at the end it needs to converge into solid value addition. For apartment I feel the break even has to be atleast within 5 years worst case.
    CommentQuote
  • @Chandru- I didn't check Abov this time, but construction was ongoing- for both projects (Olympia Reflection and Abov).

    @K11- Even Art is huge inside the city. Recent land deals- might throw in some interesting projects soon- worth a check!

    @Srivat- One's investment strategy depends on their risk appetite. RE as a portfolio is ideal for long term (buy and hold)- it may disappoint flippers.
    CommentQuote
  • Originally Posted by srivat
    :). I wanted to be as close to real. Since it is an UC apt I wanted to give discount for CLP rather directly adding inflation.

    GYM almost all apt has these days. Even the one half of the price provides. Retails in the sense departmental stores are phone call away and school still i can get in a place which has its own school or nearby apartment which is walkable. Qualitative factors definitely carry a goodwill but not that it is not possible through other means.

    @K11

    Even for end use, The motto of investment is finally profit. This is the asset you can count on during need in ones distress time. SO being end use is just an excuse I feel at the end it needs to converge into solid value addition. For apartment I feel the break even has to be atleast within 5 years worst case.


    I do see value. Primary reson being staggered payments spread across 5 years or more.
    See my numbers. Builder is also taking the risk if you ask me. If construction costs shoot up, buyer gets profit builder loses. Hard to say, what the situation is in five years. Construction costs for a high rise complex can easily hit 5K+ from the current 3.5K. What do you think of my numbers in the earlier post.
    CommentQuote