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Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

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Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

Last updated: October 18 2010
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  • Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

    Hello All

    I am an IT professional and currently own and reside in a residential property in Gurgaon.

    In near future I plan to quit my job and start a retail garments business. For this I plan to sell off the residential house in Gurgaon and diversify my investment in residential + commercial property in Greater Noida. The current valuation of my property in Gurgaon is around 1.75 Crores.

    My question to respected members is:

    1. If I need to invest near 1 Crore in a residential property (preferably plot and later construct it), where should it be. As I live with Family my priorities will be security and availability of daily need shops in near vicinity.

    I have visited Greater Noida a few times in past with my Wife and although it presently gives a secluded look we have been highly impressed with its well planned infrastructure. I have a gut feeling that it would be the best location in NCR in around 5-7 years.

    The areas that we liked were Alpha-1, Alpha-11, NRI City. I am not sure if my budget will allow me to buy a plot and construct 1 or 2 floors on it.

    2. More importantly Where should I invest in commercial property. As I plan to start a retail business i would need a commercial shop either in an open market like Alpha commercial belt or in some mall like Grand Venezia,etc.

    What are the current rates per sq ft for shops on ground/upper ground floor in malls like Grand Venezia.


    I have been following this forum, especially posts from Zohaib,Munish Malhautra amongst others and feel that this is the best platform to help you guide in the right direction. So please help me take right decisions. Thank you all.

    PS: BTW Gurgaon property prices have been spiraling upwards in last few months. Would it be advantageous to hold on to my plans for an approx an year so that I can bargain better. Cause Greater Noida I feel would not be so volatile in next 1-2 years. Or am I wrong here?
    Last edited October 14 2010, 05:17 PM.
  • #2

    #2

    Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

    Originally posted by tilakj View Post
    Hello All

    I am an IT professional and currently own and reside in a residential property in Gurgaon.

    In near future I plan to quit my job and start a retail garments business. For this I plan to sell off the residential house in Gurgaon and diversify my investment in residential + commercial property in Greater Noida. The current valuation of my property in Gurgaon is around 1.75 Crores.

    My question to respected members is:

    1. If I need to invest near 1 Crore in a residential property (preferably plot and later construct it), where should it be. As I live with Family my priorities will be security and availability of daily need shops in near vicinity.

    I have visited Greater Noida a few times in past with my Wife and although it presently gives a secluded look we have been highly impressed with its well planned infrastructure. I have a gut feeling that it would be the best location in NCR in around 5-7 years.

    Yes thats correct Gnida still not populated and presence of villages around it makes it insecure unless u opt for a gated society.

    The areas that we liked were Alpha-1, Alpha-11, NRI City. I am not sure if my budget will allow me to buy a plot and construct 1 or 2 floors on it.
    Yes opt for a location in the vicinity(~2-3Kms) around Parichok / golf course.

    2. More importantly Where should I invest in commercial property. As I plan to start a retail business i would need either a commercial shop in an open market like Alpha commercial belt or in some mall like Grand Venezia,etc.

    What are the current rates per sq ft for shops on ground/upper ground floor in malls like Grand Venezia.
    Should be around 15000psft.

    I have been following this forum, especially posts from Zohaib,Munish Malhautra amongst others and feel that this is the best platform to help you guide in the right direction. So please help me take right decisions. Thank you all.

    PS: BTW Gurgaon property prices have been spiraling upwards in last few months. Would it be advantageous to hold on to my plans for an approx an year so that I can bargain better. Cause Greater Noida I feel would not be so volatile in next 1-2 years. Or am I wrong here?
    Your decision to move to Gnida is perfect. Just time it well so that u can be in a good position to reap the benefits both from appreciation and your business returns. Gnida as i keep saying is real VFM considering the greenery and infra one dreams of. Hence to time it better, i would recommend u to wait and watch for 2 yrs since there are 50000 units expected to be supplied in next 2 years in Noida which will impact Gnida.
    All the best
    MM

    Comment

    • #3

      #3

      Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

      Thank You very much Munish . I agree that timing would be very important here.

      Request other members to voice there opinion as well.

      Comment

      • #4

        #4

        Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

        Originally posted by Munish Malhautra View Post
        What are the current rates per sq ft for shops on ground/upper ground floor in malls like Grand Venezia.
        Should be around 15000psft.
        Rs. 15000 per sqft for a retail shop in Grand Venezia ...........you must be joking ...right..??? Bcoz in GIP/WAVE/SPICE malls etc in noida ( which is fully functional and doing well enough )......prices on 1st and second floor hangs around same price point.....why would anyone will buy in G.noida ?

        Regards
        Sbajaj

        Comment

        • #5

          #5

          Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

          Originally posted by sbajaj View Post
          Rs. 15000 per sqft for a retail shop in Grand Venezia ...........you must be joking ...right..??? Bcoz in GIP/WAVE/SPICE malls etc in noida ( which is fully functional and doing well enough )......prices on 1st and second floor hangs around same price point.....why would anyone will buy in G.noida ?

          Regards
          Sbajaj
          Sbajaj,
          Thats right. I too was a bit surprised to hear the price(15K for GF with prime location) quoted by them earlier in March, it was out of budget for me. They were offering me a front showroom on FF at 11K with a decent location(facing canal for gondola rides) but the size offered was 1000 sft, again out of budget. Maybe if i had the money, i could have nego-ed 1K for GF atleast

          Finally, i decided to go for office space on 9th floor.

          They are not selling prime location shops now, only leasing.

          Btw GF prices for GIP start from 25K upto 35K for good locations. For CSM and Spice prices start from 20K upto 25K. These are current prices, prices in resale can be nego-ed better because commercial shops are normally sold because of issues with business not happening etc.. rather than appreciation

          FYI-Even wave silver tower(upcoming project in sec 18) is quoting 30K for GF and 23K for FF.
          What i understand is that the new launch commercial prices are always quoted at higher prices and later it get corrected.

          Note-GF Prices are higher by almost 30-40% than FF and FF prices are higher by similar % comparing to SF. Hence SF prices are almost 60-70% lower than GF.
          MM

          Comment

          • #6

            #6

            Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

            Originally posted by Munish Malhautra View Post
            Sbajaj,
            Thats right. I too was a bit surprised to hear the price(15K for GF with prime location) quoted by them earlier in March, it was out of budget for me. They were offering me a front showroom on FF at 11K with a decent location(facing canal for gondola rides) but the size offered was 1000 sft, again out of budget. Maybe if i had the money, i could have nego-ed 1K for GF atleast

            Finally, i decided to go for office space on 9th floor.

            They are not selling prime location shops now, only leasing.

            Btw GF prices for GIP start from 25K upto 35K for good locations. For CSM and Spice prices start from 20K upto 25K. These are current prices, prices in resale can be nego-ed better because commercial shops are normally sold because of issues with business not happening etc.. rather than appreciation

            FYI-Even wave silver tower(upcoming project in sec 18) is quoting 30K for GF and 23K for FF.
            What i understand is that the new launch commercial prices are always quoted at higher prices and later it get corrected.

            Note-GF Prices are higher by almost 30-40% than FF and FF prices are higher by similar % comparing to SF. Hence SF prices are almost 60-70% lower than GF.
            Munish
            how much do we need to have to invest in commercial shop or office space and how much rental can we expect from that shop / office space, ?

            How much did you invest in the office space u bought and how much rental are u getting ?

            Comment

            • #7

              #7

              Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

              Tarun,

              You have to pay upfront atleast 50% of the total value of property to qualify for 12% return. AR is only for office space and not shop space as shops sell fast and offices remain vacant. Grand venezia is only leasing shops and selling office space.

              I paid 50% of the total price of office space.

              BTW - Zohaib where are u, we are missing your advise.
              MM

              Comment

              • #8

                #8

                Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

                Originally posted by Munish Malhautra View Post
                Sbajaj,
                Thats right. I too was a bit surprised to hear the price(15K for GF with prime location) quoted by them earlier in March, it was out of budget for me. They were offering me a front showroom on FF at 11K with a decent location(facing canal for gondola rides) but the size offered was 1000 sft, again out of budget. Maybe if i had the money, i could have nego-ed 1K for GF atleast

                Finally, i decided to go for office space on 9th floor.

                They are not selling prime location shops now, only leasing.

                Btw GF prices for GIP start from 25K upto 35K for good locations. For CSM and Spice prices start from 20K upto 25K. These are current prices, prices in resale can be nego-ed better because commercial shops are normally sold because of issues with business not happening etc.. rather than appreciation

                FYI-Even wave silver tower(upcoming project in sec 18) is quoting 30K for GF and 23K for FF.
                What i understand is that the new launch commercial prices are always quoted at higher prices and later it get corrected.

                Note-GF Prices are higher by almost 30-40% than FF and FF prices are higher by similar % comparing to SF. Hence SF prices are almost 60-70% lower than GF.
                Munish,

                Though i have not bought any commercial till date but trying to study it from the last few months. I am kind of aware of ongoing rates in Noida. Just 2 weeks back - I was offered 1750 sqft showroom on ground floor in GIP - occupied by Pizza Hut - for 4.5 cr

                Uppal chaddha executives were after my life to make a committment on there upcoming mall in sector 18 noida - opposite radisson 25-27k per sqft.

                Mall property ( or should i say commercial from builders) comes with very heavy loading ....industry avg loading is 40% ......means your 1000 sqft showroom is actually approx 600 sqft. + Rs. 20-22 per sqft maintenence on super area + whole building runs on genset so electricity cost is around Rs.12 per unit + services charges.

                It's an expensive affair by any standard ( unless you are having free n easy money...you know what i mean ).

                Regading showroom in GV - i don't know.....full landing cost will be not less than 1.25 cr + ........still not sure how many takers and how will it perform in 10 years time as competition will continue to arrive in commercial for years to come.

                To be honest - I am still not able form my opinion on this.

                My search for good commercial is on as i am looking either for a already leased property or something from govt authority. So many new sectors are coming in noida / GN / NE.......still another market like sector 18 is only on papers.......weird.

                Regards
                Sbajaj

                Comment

                • #9

                  #9

                  Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

                  comments in red.
                  Originally posted by sbajaj View Post
                  Munish,

                  Though i have not bought any commercial till date but trying to study it from the last few months. I am kind of aware of ongoing rates in Noida. Just 2 weeks back - I was offered 1750 sqft showroom on ground floor in GIP - occupied by Pizza Hut - for 4.5 cr

                  Looks a good price considering the location. why are they looking to sell. i always find them and alongside KFC packed whenever i visit the mall.

                  Uppal chaddha executives were after my life to make a committment on there upcoming mall in sector 18 noida - opposite radisson 25-27k per sqft.

                  Havent heard abt this? is it coming on the empty land which is used for parking or around to DLF mall.

                  Mall property ( or should i say commercial from builders) comes with very heavy loading ....industry avg loading is 40% ......means your 1000 sqft showroom is actually approx 600 sqft. + Rs. 20-22 per sqft maintenence on super area + whole building runs on genset so electricity cost is around Rs.12 per unit + services charges.

                  yes, avg maintenance starts from 8-10 psft

                  It's an expensive affair by any standard ( unless you are having free n easy money...you know what i mean ).

                  Regading showroom in GV - i don't know.....full landing cost will be not less than 1.25 cr + ........still not sure how many takers and how will it perform in 10 years time as competition will continue to arrive in commercial for years to come.

                  Yes costs are high for GV. Lets see how it goes. i am hopeful (dont have any option now)as location is good and so is the concept.

                  To be honest - I am still not able form my opinion on this.

                  My search for good commercial is on as i am looking either for a already leased property or something from govt authority. So many new sectors are coming in noida / GN / NE.......still another market like sector 18 is only on papers.......weird.

                  Regards
                  Sbajaj
                  MM

                  Comment

                  • #10

                    #10

                    Re : Investment Advise needed from Zohaib Munish Malhautra and other Respected Members

                    Looks a good price considering the location. why are they looking to sell. i always find them and alongside KFC packed whenever i visit the mall.

                    Ans - It's a leased property ....rent was Rs. 1,83,000/ pm only ...It seems like investor has made a bundle on capital value ....and returns PM are not attractive or may be alternative investment is too good to be missed.

                    Uppals -
                    Havent heard abt this? is it coming on the empty land which is used for parking or around to DLF mall.

                    Ans - yes ....Bang opposite Radisson ....parking lot is gone now.....mall cum office complex is coming ....digging is going to start soon....fencing is already done.

                    It seem GV is expensive by 25-30 % .....retail shop cannot be more than 10k per sqft on ground floor in GN. We can't compare with banana.....Comparison with noida is not a right comparison.

                    Wish you all the best....let's see what happens.

                    Regards
                    Sbajaj

                    Comment

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