Members!!!!

I have been looking to invest in a 2-3 Bhk since a couple of months now and more or less zero-ing on ireo sector 67a project ( although uptown, palm studio and victory valley are still on my radar) ... I request all knowledgable members ( especially the seniors and brokers in disguise of members) to comment upon the pros and cons of the project.

Also, I'd request other members planning to go for the project to get in touch with me, so that, we can look for a deal as a group rather than as multiple single parties .

As a start to the thread, let me list out a few pros and cons.

PROS

- New launch. Very little upfront payment.
- Specifications, better than basic, which are becoming a hallmark of ireo.
- location ( as per first information) looks to be good. Behind sector 67 or say
behind victory valley and PVSN
- other projects of the builder getting handsome appreciation and excellent
speed of all projects as of now ( cash crunch doesn't seem to be affecting the
So called FDI funded , politically funded as per grapevine, builder at all.

CONS

- yet undemarcated sector. Not in master plan 2021.
- builder, although very promising, hasn't delivered anything as yet
- specifications will be more along the lines of uptown ( which is available in
resale at 4800-4900 levels and has better location) and not very luxurious
Like grand arch,victory valley or skyon.
- although pricing is very speculative as of now but if it ends up 5k or more
Will be a disappointment ( like unitech south park).


I hope to hear from the other guys soon ....
;)





MODERATOR's NOTE - This thread was started about 18 months back, when this project was rumored to be getting launched . Due to delay in the launch this thread went into hibernation for some time and it is now alive . Newbies/First time users, please note & do not get misguided by the last year's launch price that stands mentioned . A duplicate thread { which stands closed now } has some updated information . Refer http://www.indianrealestateforum.com...7-a-46911.html .
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  • I was told by IREO US staff a month back about this project .As per her it will be launched at 5500 .. So if you get some inaugural discount and you get starting price around 5 k go for it if you are interested don't expect final launch price less then 5500 until the company has change of heart / market conditions...
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  • Originally Posted by manu813
    I was told by IREO US staff a month bak about this project .As per her it will be launched at 5500 .. So if you get some inaugural discount and you get starting price around 5 k go for it if you are interested don't expect final launch price less then 5500 until the company has change of heart / market conditions...


    Manu jee!!

    You're right IREO is planning to launch it at 5500 psft. Pre launch will be next month and brokers are giving tentative pre launch price between 4700-5100.. If the market takes a turn for worst, considering that there's been a further rate hike by RBI, it becomes a different ball game altogether. Otherwise, that's the scenario as of now.

    I'm just here to take members opinion, if they think it's a good buy at 4700-5100 levels and to get in touch with other members who're investing, if any!
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  • the initial price is not expected to be below 5000...( more like 5200 in fact... though nothing firm on either launch date/price)
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  • I would suggest Uptown over the new launch provided u get a decent location 4700 in uptown...
    Ireo messed up with the pricing of Skyon and if they continue to do so with New launch then you would not have much to cherish about...

    If the specs are more or less similar to Uptown, then it makes sense to invest in uptown due to its location and also project already under construction state...

    There is enough supply with same specs in that area hence I dont see much appreciation in a medium term if the it is launched at 5300-5500 price point.








    Originally Posted by St_Anger
    Manu jee!!

    You're right IREO is planning to launch it at 5500 psft. Pre launch will be next month and brokers are giving tentative pre launch price between 4700-5100.. If the market takes a turn for worst, considering that there's been a further rate hike by RBI, it becomes a different ball game alltogether. Otherwise, that's the scenario as of now.
    I'm just here to take members opinion, if they think it's a good buy at 4700-5100 levels and to get in touch with other members who're investing, if any!
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  • I see some projects ( the better located one's & with decent Builders) in this belt peaking at around 6000/6200 price point in a holding of about 2/3 years . Rest could land in 5500-5700 kind of levels .

    My PoV, could be wrong .



    Originally Posted by rushilarora
    I would suggest ..............

    There is enough supply with same specs in that area hence I dont see much appreciation in a medium term if the it is launched at 5300-5500 price point.
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  • I agree... this myth that every project launched at any ridiculous price will give the same returns as past will bust .....and many investors will learn it the hard way..


    Originally Posted by MANOJa
    I see some projects ( the better located one's & with decent Builders) in this belt peaking at around 6000/6200 price point in a holding of about 2/3 years . Rest could land in 5500-5700 kind of levels .

    My PoV, could be wrong .
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  • So True...

    Ultimately its the same pie which builder shares with the investors or the end users while launching a project....
    Initial appreciation of the projects depends on how much pie out of current premium has been eaten by the builder... In last few years there has been a tendency by all the builders to gobble up the maximum premium themselves and leaving much less for the investors to share...

    When you launch a project in the same location (in fact inferior if we see the new project launch of Ireo) and with inferior specs then the earlier one at a price of 5500 psf, then where is the scope for investor to make money????

    Imagine just 16 months back they had launched Uptown 3600 psf with VRV air conditioning and other premium features and now at the same location they are launching new project 5300 -5400 psf... There is a jump of 1900 psf...

    Just speak to any investor in that area who has had this kind of appreciation in last 16 -18 months.... There ain't any

    This concept of entering a project with initial down payment (which is always very less) is putting lots of people in financial crisis at the moment..
    As when you plan to exit after paying 30% cost of the project after few months, there are very few takers at that price...

    That's when decent projects like uptown start looking good for investment...



    Originally Posted by manu813
    I agree... this myth that every project launched at any ridiculous price will give the same returns as past will bust .....and many investors will learn it the hard way..
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  • Originally Posted by rushilarora
    So True...

    Ultimately its the same pie which builder shares with the investors or the end users while launching a project....
    Initial appreciation of the projects depends on how much pie out of current premium has been eaten by the builder... In last few years there has been a tendency by all the builders to gobble up the maximum premium themselves and leaving much less for the investors to share...

    When you launch a project in the same location (in fact inferior if we see the new project launch of Ireo) and with inferior specs then the earlier one at a price of 5500 psf, then where is the scope for investor to make money????

    Imagine just 16 months back they had launched Uptown 3600 psf with VRV air conditioning and other premium features and now at the same location they are launching new project 5300 -5400 psf... There is a jump of 1900 psf...

    Just speak to any investor in that area who has had this kind of appreciation in last 16 -18 months.... There ain't any

    This concept of entering a project with initial down payment (which is always very less) is putting lots of people in financial crisis at the moment..
    As when you plan to exit after paying 30% cost of the project after few months, there are very few takers at that price...

    That's when decent projects like uptown start looking good for investment...


    Hi All
    I attended the Dubai Property Show yesterday and IREO was here all guns blazing despite not having delivered a single project till date.
    Victory Valley was their main focus.The co. is selling this at 6750 levels.The theory of relativity is so damn true even in RE investment as the prices of normal projects i the vicinity are hovering anywhere between 4500 to 5000, considering the same VV's tag of 6750 (Mkt rate arnd 6000)looks justified completely based on superior features and assumed quality.
    Unitech's 5470 P.sq.ft for South Park was daylight robbery.
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  • let me get this thing clear .... if one expects this launch at even say 5000 , then one expects at least a return of 500-750 per sq ft in span of 1.5-2 yrs(capital value of 5750) , this means projects in sector 67 with similar specs should be then by that time at around 6500-7000 levels and then the likes of emaar in sector 66 should be around 8k-8.5 k ....

    Do you see this growth rate in the future span of 1.5 to 2 yrs ?? Also if you do , then doest it make sense to buy a bptp park prime or a PVS next rght now as these are around 4 to 5 k levels right now .... and resale should be much easier in sectors towards gc ex rather than further back ...shouldnt it ??


    also if project is in sector 67 a , that would basically mean 2-3 km inside of gc ex , so wouldnt the main approach of this sector be sohna road rather than gc ex ????

    Just trying to understand if my line of thought is moving in the right direction or not ...
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  • Originally Posted by rushilarora
    I would suggest Uptown over the new launch provided u get a decent location 4700 in uptown...
    Ireo messed up with the pricing of Skyon and if they continue to do so with New launch then you would not have much to cherish about...

    If the specs are more or less similar to Uptown, then it makes sense to invest in uptown due to its location and also project already under construction state...

    There is enough supply with same specs in that area hence I dont see much appreciation in a medium term if the it is launched at 5300-5500 price point.


    Rushiljee!!!

    Baat to sahi hai aapki but don't just look at the prices merely as figures. Today if I buy an uptown that would mean immediate payment of 32 L for a 1400 sqft.. And another 10 odd within the next few months..

    Whereas this project is just starting off. So probably the total I'd pay for a similar size appt wud be 12-15 L over the next 6-8 months.. Now, considering we are living in high interest rate era in the short term, doesn't it mean a lot to save interest on borrowed money or earn returns elsewhere if it's your own money. The actual pricing to enter uptown right now wud be much higher than entering 67a.. That's a fact that I never see my investor community friends, identify.. And even if told, most of them continue to live In denial.. I don't know how many here wud agree and how many wud take the easier denial route but the fact is that 5000.. This project is much cheaper than uptown 4900.

    I kno, uptowns gonna turn out better than this one par why take the trouble of arranging so much money if u cud buy something similar with a lot of ease?
    Considering , as I said earlier, in effective pricing terms, it's cheaper than uptown !!!
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  • Originally Posted by manu813
    I agree... this myth that every project launched at any ridiculous price will give the same returns as past will bust .....and many investors will learn it the hard way..


    Manu jee!!!

    No project currently will Give returns of the past, if you talking of the dramatic rise of mkts from jan 2009 to end 2009. Those were times were recession was the most searched word on google and once the investor, after a long lean period, came to the markets.. The euphoria was uncontrollable and hence the surge...

    People talk of ireo launching uptown at 3800 .. 16 months back.. I would also like to remind them that unitech launched sunbreeze nd vista at less than 3k.. Ditto with Bptp park prime... A broker was offering me palm drive at 4k, a project which was sold at 4.5k a year or so prior to this dealing. Those were horrendously troubled times and can't be compared to today's time. Also, what return has been achieved may not be achieved again. The surge Indian RE saw in the last few yrs may ( and I guess will) not be seen again.

    Lemme give u an example, a kothi sold a few blocks from where I live ( my house isn't self or family owned so plz don't club me with the bentley driving, cigar weilding, golf connosieurs who are friends with the hiltons, kardarshians, Hefner and clintons of the world) last week for 170 crore rupees ( that's close
    to 40 million dollars).. Ten yrs back there wouldn't have been any takers at 17 cr.. We can safely assume a return of ten times.. Now, how many of us believe that in 2021, it would cost 1700 crore??
    Easy to answer, I'm sure. Similarly, the apartments which have come from 15 lac to 1.5 cr will not go to 15 cr.. That insane part of the cycle us over!!! Or close to over.. What we shud look at now are stabalized returns.
    High returns will come in projects where risk is high. For eg, DExp but on/near GCx... It wud be unfair to chase same returns As of 2009..

    To cut a long story short, past performance is not a guarantee of future returns ..

    I know some of you'd retort.. History repeats itself .. Quote!! Well i'd just say guys!! It does .. But if u see, if there are ten possibilties of something happening, you'd find historic precedence similar to all ten of them.. Bole to, history doesn't repeat itself.. It's was just an attempt by ur history teacher to get u to participate.. Class is long over.. Stop taking the teachers lies as gospel truth!!! ;) ;)
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  • Originally Posted by MANOJa
    I see some projects ( the better located one's & with decent Builders) in this belt peaking at around 6000/6200 price point in a holding of about 2/3 years . Rest could land in 5500-5700 kind of levels .

    My PoV, could be wrong .


    ManojA jee!!

    I agree with you!! Par, this can be said abt any project with basic specifications like emerald estate or pioneer park.. This won't be true for projects like grand arch, victory valley, m3m, skyterraces in palm drive and other luxury projects. The price range for them wud be decided by their inspirational value. If the rich really want them, and if there is heavy demand.. I see 15000 psft a reality for atleast super luxury projects in the medium to long term!!!
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  • Originally Posted by ISHANb
    let me get this thing clear .... if one expects this launch at even say 5000 , then one expects at least a return of 500-750 per sq ft in span of 1.5-2 yrs(capital value of 5750) , this means projects in sector 67 with similar specs should be then by that time at around 6500-7000 levels and then the likes of emaar in sector 66 should be around 8k-8.5 k  ....

    Do you see this growth rate in the future span of 1.5 to 2 yrs ?? Also if you do , then doest it make sense to buy a bptp park prime or a PVS next rght now as these are around 4 to 5 k levels right now .... and resale should be much easier in sectors towards gc ex rather than further back ...shouldnt it ??


    also if project is in sector 67 a , that would basically mean 2-3 km inside of gc ex , so wouldnt the main approach of this sector be sohna road rather than gc ex ????

    Just trying to understand if my line of thought is moving in the right direction or not ...



    Ishan jee!!! 

    First of all let me congratulate you for the most thought provoking post on the thread. Although, considering the hypothetical nature of most questions it's difficult to answer them with any definitive sense, I'd try to GUESS the best I can.
    As for returns, kindly view my post above which wud tell u my POV which would be for us to expect more realistic returns from the markets. I think in RE, in the long run, the bulls, the dogs, the cats and the donkeys all manage to run up a fair bit ;) { remember!! I said long run.. }

    Just try selecting a throughbred instead of a donkey for better chances. 

    Next question abt resale of pvsn to that of GCx projects.. Well closer to GCx with same specification would always be high.. See emerald estate or pioneer park which have zero specs as compared to pvsn, still going 500-1000 higher than pvsn but if u want good specifications at a decent price, you'd gave to go deeper into GCx to find your pick. I hope that explains!!!

    Next up, entry .. Of course the entry will be closer to sohna road but the considering the up mkt appeal of GCx .. People wud point towards GCx as an entry. I'll give you an example, I just said abt a 170 cr bunglow in my previous post. This bunglow is in shanti niketan. The shortest approach to SN from ring road is through a 500 m stretch of broken road with slums on both sides. You can see the likes of BMW-Z4, bentleys, 740, 650, the s class, range rovers and what not zipping thru this filthy stretch in order to save up on 2kms of drive.. Now, if these gods have another god, czar or a clergyman visiting them in his 1.5 cr chariot of speed, the way given is always that of .. Come straight from the US Embassy.. Cross the red light.. Go straight .. Take a U turn and then turn left.... He can be told to come from the shorter route, but he's not.. To increase the desirability of their abode.. Along the same lines... ( and plz do not get offended I'm not comparing sohna rd to slums.. ).. Although, the entry wud be closer to sohna road.. People wud always like to associate themselves with GCx, purely for the sake of their titilating desire of an upmarket  address.


     
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  • sidestepping a very elaborate answer to a very basic question :bab (22):
    now whats a "main approach" arre bhai it depends on from where are you approaching... ppl coming from GC/GCX/57 will take GCX and those from NH8/sohna/medicity etc will take the sohna rd.

    also the "posh" quotient ( for whom it matters and more so for who understand it) its not the road but the PROJECT which matters... now its like comparing LaLagune/Veranda/Belmonte to Nagina society next door!!!( both GC) or for that matter Pioneer park to to florence residncy across the road....( both GCX)



    Originally Posted by St_Anger
    Ishan jee!!!

    First of all let me congratulate you for the most thought provoking post on the thread. Although, considering the hypothetical nature of most questions it's difficult to answer them with any definitive sense, I'd try to GUESS the best I can.
    As for returns, kindly view my post above which wud tell u my POV which would be for us to expect more realistic returns from the markets. I think in RE, in the long run, the bulls, the dogs, the cats and the donkeys all manage to run up a fair bit ;) { remember!! I said long run.. }

    Just try selecting a throughbred instead of a donkey for better chances.

    Next question abt resale of pvsn to that of GCx projects.. Well closer to GCx with same specification would always be high.. See emerald estate or pioneer park which have zero specs as compared to pvsn, still going 500-1000 higher than pvsn but if u want good specifications at a decent price, you'd gave to go deeper into GCx to find your pick. I hope that explains!!!

    Next up, entry .. Of course the entry will be closer to sohna road but the considering the up mkt appeal of GCx .. People wud point towards GCx as an entry. I'll give you an example, I just said abt a 170 cr bunglow in my previous post. This bunglow is in shanti niketan. The shortest approach to SN from ring road is through a 500 m stretch of broken road with slums on both sides. You can see the likes of BMW-Z4, bentleys, 740, 650, the s class, range rovers and what not zipping thru this filthy stretch in order to save up on 2kms of drive.. Now, if these gods have another god, czar or a clergyman visiting them in his 1.5 cr chariot of speed, the way given is always that of .. Come straight from the US Embassy.. Cross the red light.. Go straight .. Take a U turn and then turn left.... He can be told to come from the shorter route, but he's not.. To increase the desirability of their abode.. Along the same lines... ( and plz do not get offended I'm not comparing sohna rd to slums.. ).. Although, the entry wud be closer to sohna road.. People wud always like to associate themselves with GCx, purely for the sake of their titilating desire of an upmarket address.


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  • St. Angerjee!!!
    fully agree with your statement that we are entering a phase of consolidation and returns of last 2 years will not be replicated "in near future"
    we should enter the market with reasonable return expectations and we wont regret.
    also prices in new locations go on a price discovery for a few years with launch prices as the base...
    with increasing land cost i dont see current prices of 5000 in sec 67 as being high( would so wish they were much lower)
    3800 was not cheap for uptown at that point nor was sunbreeze at 3000
    ( ask ppl who picked it then)

    as a standard norm property is never cheap/expensive... its only a matter of comparative valuation....

    coming to your example of 170 cr SN house( i guess you are mentioning sandeep jajodias house) the price is not an abberation... its not even way up the expensive list...( its about 80,000/-) its just that you dont find 2000 y plots in SN for sale any more....

    for those who like these numbers...Ruias 30 jan bunglow cost almost double around 1.4 L/sq ft in 2008!!! and GMR golf link house was again 8L/yard..

    compare this 2 deals which made big headlines years back Sunil Mittals Amrita shergill house was 37 Crores in 2002 and was anew bnech mark then and so was gagan banga( india bull) purchase of flat at 37,500 /sq ft in 2006 a new bench mark and created ripples...
    and then his partner Sameer. went ahead and bought a flat at 1L/sq ft in 2008


    so such deals will always make us wonder but this is only a play of very posh address and scrace supply which DOES NOT apply to ggn projects...









    Originally Posted by St_Anger
    Manu jee!!!

    No project currently will Give returns of the past, if you talking of the dramatic rise of mkts from jan 2009 to end 2009. Those were times were recession was the most searched word on google and once the investor, after a long lean period, came to the markets.. The euphoria was uncontrollable and hence the surge...

    People talk of ireo launching uptown at 3800 .. 16 months back.. I would also like to remind them that unitech launched sunbreeze nd vista at less than 3k.. Ditto with Bptp park prime... A broker was offering me palm drive at 4k, a project which was sold at 4.5k a year or so prior to this dealing. Those were horrendously troubled times and can't be compared to today's time. Also, what return has been achieved may not be achieved again. The surge Indian RE saw in the last few yrs may ( and I guess will) not be seen again.

    Lemme give u an example, a kothi sold a few blocks from where I live ( my house isn't self or family owned so plz don't club me with the bentley driving, cigar weilding, golf connosieurs who are friends with the hiltons, kardarshians, Hefner and clintons of the world) last week for 170 crore rupees ( that's close
    to 40 million dollars).. Ten yrs back there wouldn't have been any takers at 17 cr.. We can safely assume a return of ten times.. Now, how many of us believe that in 2021, it would cost 1700 crore??
    Easy to answer, I'm sure. Similarly, the apartments which have come from 15 lac to 1.5 cr will not go to 15 cr.. That insane part of the cycle us over!!! Or close to over.. What we shud look at now are stabalized returns.
    High returns will come in projects where risk is high. For eg, DExp but on/near GCx... It wud be unfair to chase same returns As of 2009..

    To cut a long story short, past performance is not a guarantee of future returns ..

    I know some of you'd retort.. History repeats itself .. Quote!! Well i'd just say guys!! It does .. But if u see, if there are ten possibilties of something happening, you'd find historic precedence similar to all ten of them.. Bole to, history doesn't repeat itself.. It's was just an attempt by ur history teacher to get u to participate.. Class is long over.. Stop taking the teachers lies as gospel truth!!! ;) ;)
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