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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  • The same from allcheckdeals was showing 5500 few days back.
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  • that's their way of generating leads... a prospective customer sees a lower price, calls... then they follow up...
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  • All the senior and knowledgeable members have gone silent here... Is it that you all are busy getting your cheques through and not have much competition or is that all are tired of the efforts of Ireo to create a hype...

    May I humbly request kinjalchatoji, rushilaroraji & st_angerji to throw some light... :)
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  • As per my info cheques should be banked within the next 10 days.
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  • unlikely that any thing will happen for next some time..
    if my birds are to be believed there is a rethink happening on the price point of 8750..:bab (45)::bab (45):
    may be prices get revised upwords of 500-700 rs. the effect of emaar launch/dlf pricing of 81 (which is rumored to be close to 9000) is making the ireo management do a rethink on prices...
    saving grace that opinion is still divided... wait and watch..



    Originally Posted by manoj2066
    As per my info cheques should be banked within the next 10 days.
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  • Originally Posted by AmitMM
    unlikely that any thing will happen for next some time..
    if my birds are to be believed there is a rethink happening on the price point of 8750..:bab (45)::bab (45):
    may be prices get revised upwords of 500-700 rs. the effect of emaar launch/dlf pricing of 81 (which is rumored to be close to 9000) is making the ireo management do a rethink on prices...
    saving grace that opinion is still divided... wait and watch..

    Kya baat hai, flats bhi hawa main banainge..
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  • Originally Posted by Lazybell
    All the senior and knowledgeable members have gone silent here... Is it that you all are busy getting your cheques through and not have much competition or is that all are tired of the efforts of Ireo to create a hype...
    May I humbly request kinjalchatoji, rushilaroraji & st_angerji to throw some light... :)


    Disaster time the brain goes reverse :) . That is what will happen when very smart builders forget what was the reason of success and like drunk elephants they will destroy everything in front of them, hope they see some sense.

    amitmm message is even more scary , hope ireo does not fall into mine is larger syndrome, and i meant the price .
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  • kinjalchato-ji...how do you define the success of a builder? ...is it building quality residencies in decent timeframe OR giving good return to investors?

    If the emaar 112 charade is true, can't blame IREO to keep on increasing the launch price...they will even sell it at 10k if there are enough "investors" to buy at that price...whether these investors get a good return in 2yrs time is a different questions..and frankly not IREO's problem :bab (59):

    Originally Posted by kinjalchato
    Disaster time the brain goes reverse :) . That is what will happen when very smart builders forget what was the reason of success and like drunk elephants they will destroy everything in front of them, hope they see some sense.

    amitmm message is even more scary , hope ireo does not fall into mine is larger syndrome, and i meant the price .
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  • Most of the fat financiers who pick up multiple units just stop paying further instalments if they are not able to exit.

    This results in delay in the project and resultant reputation issues for the builder.

    So "who is buying" is important for the builder as well.
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  • Originally Posted by ajgupta18
    kinjalchato-ji...how do you define the success of a builder? ...is it building quality residencies in decent timeframe OR giving good return to investors?

    If the emaar 112 charade is true, can't blame IREO to keep on increasing the launch price...they will even sell it at 10k if there are enough "investors" to buy at that price...whether these investors get a good return in 2yrs time is a different questions..and frankly not IREO's problem :bab (59):


    compliments on a well articulated point.

    if the builder is a fly by night operator then their sole objective is first to themselves and second to those class of investors who make entire careers out of speculation either on stocks or RE or commodity prices. hence for these investor builder types the only criterion is returns.

    otherwise the stated objective, which to my mind is the fundamental objective of any builders should be to give to give quality residential communities in the promised timeline at the promised price :).

    of late the 30% one trick ponies ind of investors have also been marginalized with these kind of unhealthy competition to inflate prices and when all your stakeholders start deserting you, disaster is inevitable.

    now that is ireo and every other wannabe ' most respected ' builders problem for sure.
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  • I believe that the investors are necessary to gauge the market IF the builder is not sure of their own project.

    If they honestly believe in their own project they will highlight the product USP for end user benefit and try to show how it will benefit the client. Pricing can be a function of the product. The project if perceived well will attract both investors and end users.

    Thus may not be no exit pressure and two installment sellers therefore less pressure on the company to artificially raise prices to benefit the 'early birds'. Cash flow pressures will ease and construction could be nearing the perceived PERT.

    Target should be that the project is completed in time and the product is done cleanly i.e no corners cut due to abnormal input price increase due to construction delays.

    The inherent value will be realized benefiting both stakeholders.

    Pipe dream .... Hope not.
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  • Valuation is DCF only; and in RE CF is rent.
    A project gets valued today as per estimates of what kind of payment capacity future residents are likely to have when the project gets inhabited.

    At the same time it is not possible to sell a project to end users alone, in fact they can at best be a minor percentage; it has to be sold to investors, and investors care about returns.

    But the point remains that investor returns do not come from some unidentifiable and undiscoverable elusive factor; they come exactly from the livability of the delivered project in terms of location and quality.

    Therefore a builder with a good reputation will command a premium to other projects in the same location.
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  • Originally Posted by sanju11
    Hi,

    Thanks a ton!!!!

    Indeed, it's a good comment for all the Business Partners. It is equally applicable to end-user, early-bird, builder and community around the RE mkt.
    Basically, timely delivery with good quality works of a builder, would result better an appreciation of investment. Best Tech, IREO etc. may be the burning examples!
    It's the 'Universal Truth'

    with regards,

    Sanju


    teamplayer / sanju,

    agree with both of your points and the key deliverable is wether the builder delivers in time, as promised which is rare in todays market. Builders like bestech and vipul have demonstrated the same, though the definition of quality should be stretched a bit.

    Ireo is yet to deliver, though as an end user who has been tracking 2 of their projects, they seem to be promising. Only once they deliver something worthwile, will market reward them ahead of expectation, however today with launches like 67a and several others by other builders, they are trying to encash TINA / perception / brand of parent factors to seek way above market prices after each new launch, i n areas where there is absolutely nothing to deserve those premiums.
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  • Investors

    This is what i think are the rules of the RE game in Gurgaon. Comments welcome :)

    Today, lets say various factors tell us that in 2016 there will be demand for X no. of apartments in Gurgaon, so a large no. of builders launch projects to fullfill this future demand. However as of today only 30% of X end users exist, so for this future demand to be fullfilled, the gap has to be filled by Investors. i.e. without investors, 70% of projects will not even launch today creating a supply shortfall in 2016 increasing prices exponentially in the next 3 years. So investors are necessary participants of this game.

    Now say that 2-3 builders seperate themselves from the rest due to past performance, clean books, good ethics etc, then they will be able to attract most of these limited end users + investors who invest for long horizons (till possesion). They launch their projects at prices 1-2k above the market and are still able to sell them due to demand, at the same time keeping away short-term punters, maintaining steady cashflows, ensuring timely delivery and quality, thus enhancing reputation further.

    Smart short/medium term investors realize this is not their game anymore and move to other (more risky) builders, thus fulfilling their purpose of funding other projects which no end user will buy at the moment.

    Delusional short/medium term investors will still go ahead and invest in these "high price" projects and burn their hands with no returns in 2 years :bab (59):
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  • Originally Posted by Lazybell
    Valuation is DCF only; and in RE CF is rent.
    A project gets valued today as per estimates of what kind of payment capacity future residents are likely to have when the project gets inhabited.

    At the same time it is not possible to sell a project to end users alone, in fact they can at best be a minor percentage; it has to be sold to investors, and investors care about returns.

    But the point remains that investor returns do not come from some unidentifiable and undiscoverable elusive factor; they come exactly from the livability of the delivered project in terms of location and quality.

    Therefore a builder with a good reputation will command a premium to other projects in the same location.


    That is fine,a reputed builder charges for the brand but the brand charges are too high.
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