Need your advice on a buying decision. I want to invest in a residential plot. I have been researching for 6 months and have shortlisted a plot in sec-31, greater noida.

It is purely for investment purpose and horizon is 7 years post which i want to sell it off and book profits.

I had also considered 'apartments' and 'commercial office space' but concluded that they are in over-supply at least for the time being and might see correction over next 12-18 months.

I was upbeat about 'retail spaces' but again ignored it as i wanted to invest in a prime retail space of a prime locality but was getting small
'covered area' in my budget of 60 Lacs.

I finally concluded on residential plot (200 sq. m) in sec-31, greater noida.

While I am totally satisfied about the future of this town over a 20 year
investment horizon, but I have the following apprehensions:

- Whether this is the 'right time' to buy ? Various analysts feel that world economy is slowing, US has a looming recession, indian economy is showing signs of deceleration, inflation and interest rates are hardening and realty prices are tapering off and correcting.
Research reports are saying of a possible further correction of 15% from here.

- i have observed that in last 1 - 1.5 years realty has stagnated in general. In particular, there has been mixed trends. eg. gurgaon has corrected, rohini (i.e. delhi) has appreciated hugely and greater noida (a tier-II city) has remained static. This is further confusing my decision. It seems that satellite towns might not appreciate for the time being and there could be stagnancy for 2-3 years. Since my investment horizon is only 7 years i am apprehensive about my 'timing' of buying.

- My funds are presently parked in FDs, yielding after-tax returns of 8%. If greater noida remains static i will lose on the opportunity cost of FDs.
Also if there is any forecast for correction, i can buy this plot at a lower rate in 1-2 years.

- some reports say that correction will only apply to residential apartments and commercial office spaces and not on residential plots and retail spaces

Kindly advise on -

- View on future price trends for greater noida 'plots' (not apartments) . will there be major corrections?

- should i buy now or hold on the decision for the time being.

looking forward to your help and advice

rgds

Manish Gupta
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  • Hi Living & Space,

    I have a query. Do you have any idea about the Purvanchal project coming up in Chi-Phi -II. When is that going to be launched and at what rate? Also Nimbus is coming up with phase-2. How is that? I am asking from end-user's point.

    What are the prevailing rates of commercial in alpha belt(Read Vardhman Alpha Square, GF)?

    Thanks and Regards,
    LECTOR
    CommentQuote
  • Living & Space,

    Anytime SIR!!

    Lets meet up somewhere.

    Issi bahane Hume thoda gyaan bhi mil jayega real estate ke baare main!!

    Regards,

    Lector
    CommentQuote
  • Originally Posted by livingnspace
    Lector Sir

    Purvanchal was supposed to launch its product but due to NCRPB permission Transfer and Etc was cancelled in the sector hence it didn't Launch .......

    We believe the Company will be launching it after 22 nd may if everything goes well for YEW and near opening of YEW

    For end use purpose definitely the project is one of the best due to past record from purvanchal I would say the rates to be near 3000 psf in soft launch....... will get a group together and inform you once i have permission from purvanchal to start taking cheques.....

    Ground Floor Alpha is on a stand still i think Under construction would be 13500-16000 depending on location and size ................ RTM Shops facing golf course 18000-22000 locations and size again.........

    Prevailing rental rates between (120-100 psf for brands)

    Regards
    Livingnspace

    Lets Have a beer sometime sir ;-)


    I had called up Purvanchal marketing guy around 2-3 weeks back and he told me that their project Royal city had been launched 1 and 1/2 yrs back !!!!!! current rate is 3500+ psf.
    Also heard that Purvanchal do not tie up with any agents for their deals.....

    Pls clarify.
    CommentQuote
  • Yes, its in chi-V. Project name is Purvanchal Royal City..

    Pls let me know if, as stated by you, they r YET to launch it. I am VERY KEEN on this project, since their construction quality and builder reputation is good.

    Also, what will the minimum price, all inclusive for a 3BHK of say 1600 sq ft?? (Not sure if they will have anything below 1800 sq ft though..)




    Regards
    Sri...
    CommentQuote