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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  • Dear co members,

    Reading last 3 days posts was very enlightening and learning experience. Hats off to all for such inputs.

    Now to come to ground reality of 67A. I had filled no other form except CIBIL but my allotments had started and were being done and all the 3BHK's offered to me in Tower B are like row houses with one side exposure. Two perpendicular sides are adjoining units and other side is half open and common between two units on the opposite side. As informed on phone, there is absolutely no space between the towers as they are adjoining each other. 2200 units in a 40 Acre land seems too much. 600 PSFT. for parking would be added in a 3BHK unit and PLC's vary from 6-15%. For a non PLC 3BHK 17 lac has to be paid now, 17 on completion of 45 or 60 days and around 22 on excavation which in every liklihood would be around Q4 of 13. To sum up 56L for each unit paid in 7-8 months and with over 1000 units sold in first tranche, what premium could you expect??? Maybe sheer 500-1000 after 1 year which would not be so good especially with the risk involved in this project as due to large number of units, exit might not be as easy as we think. One good option they have given is that you can cancel your booking if the unit allotted is not of your choice.

    With Ireo's hands full with under construction projects, a project of this magnitude is almost impossible to complete in decent time frame. Have no idea what possession date engagement has been mentioned in the papers.

    Ireo has learnt that sale of units at a higher price at a later stage becomes difficult due to competition with resale market-hence my thought is that we would not see price rises in this project like we used to see in their earlier projects as maximum number of units have been sold in the first stage that also with escalation clause which will bring a flood of resale units in the market the moment BBA is signed on payment of 30% cost.

    Specs do not ring a bell as flooring is vitrified tiles and no clear indication about airconditioning. In every probability it would be split ACs. This is no way an ultra luxury-not even a luxury project.

    Due to all this confusion, I have asked my broker to hold my cheques with Ireo which he had handed over to them. I am most likely going to let this pass and invest maybe in Hibiscus II or any other suggestions by senior members.

    What was this Heritage I on GCX? Please throw some light on this one!

    Thanks in anticipation of advise and Cheers.

    CA.
    CommentQuote
  • I second your take on this project and have similar views on it.
    Dense project 2200 units in 40 acres
    Exorbitant PLC - not a view of niagara from balconies?
    Escalation clause inspite of atleast 20-30% high on price



    Originally Posted by Cheeky AlAn
    Dear co members,

    Reading last 3 days posts was very enlightening and learning experience. Hats off to all for such inputs.

    Now to come to ground reality of 67A. I had filled no other form except CIBIL but my allotments had started and were being done and all the 3BHK's offered to me in Tower B are like row houses with one side exposure. Two perpendicular sides are adjoining units and other side is half open and common between two units on the opposite side. As informed on phone, there is absolutely no space between the towers as they are adjoining each other. 2200 units in a 40 Acre land seems too much. 600 PSFT. for parking would be added in a 3BHK unit and PLC's vary from 6-15%. For a non PLC 3BHK 17 lac has to be paid now, 17 on completion of 45 or 60 days and around 22 on excavation which in every liklihood would be around Q4 of 13. To sum up 56L for each unit paid in 7-8 months and with over 1000 units sold in first tranche, what premium could you expect??? Maybe sheer 500-1000 after 1 year which would not be so good especially with the risk involved in this project as due to large number of units, exit might not be as easy as we think. One good option they have given is that you can cancel your booking if the unit allotted is not of your choice.

    With Ireo's hands full with under construction projects, a project of this magnitude is almost impossible to complete in decent time frame. Have no idea what possession date engagement has been mentioned in the papers.

    Ireo has learnt that sale of units at a higher price at a later stage becomes difficult due to competition with resale market-hence my thought is that we would not see price rises in this project like we used to see in their earlier projects as maximum number of units have been sold in the first stage that also with escalation clause which will bring a flood of resale units in the market the moment BBA is signed on payment of 30% cost.

    Specs do not ring a bell as flooring is vitrified tiles and no clear indication about airconditioning. In every probability it would be split ACs. This is no way an ultra luxury-not even a luxury project.

    Due to all this confusion, I have asked my broker to hold my cheques with Ireo which he had handed over to them. I am most likely going to let this pass and invest maybe in Hibiscus II or any other suggestions by senior members.

    What was this Heritage I on GCX? Please throw some light on this one!

    Thanks in anticipation of advise and Cheers.

    CA.
    CommentQuote
  • Originally Posted by Cheeky AlAn
    Dear co members,

    Reading last 3 days posts was very enlightening and learning experience. Hats off to all for such inputs.

    Now to come to ground reality of 67A. I had filled no other form except CIBIL but my allotments had started and were being done and all the 3BHK's offered to me in Tower B are like row houses with one side exposure. Two perpendicular sides are adjoining units and other side is half open and common between two units on the opposite side. As informed on phone, there is absolutely no space between the towers as they are adjoining each other. 2200 units in a 40 Acre land seems too much. 600 PSFT. for parking would be added in a 3BHK unit and PLC's vary from 6-15%. For a non PLC 3BHK 17 lac has to be paid now, 17 on completion of 45 or 60 days and around 22 on excavation which in every liklihood would be around Q4 of 13. To sum up 56L for each unit paid in 7-8 months and with over 1000 units sold in first tranche, what premium could you expect??? Maybe sheer 500-1000 after 1 year which would not be so good especially with the risk involved in this project as due to large number of units, exit might not be as easy as we think. One good option they have given is that you can cancel your booking if the unit allotted is not of your choice.

    With Ireo's hands full with under construction projects, a project of this magnitude is almost impossible to complete in decent time frame. Have no idea what possession date engagement has been mentioned in the papers.

    Ireo has learnt that sale of units at a higher price at a later stage becomes difficult due to competition with resale market-hence my thought is that we would not see price rises in this project like we used to see in their earlier projects as maximum number of units have been sold in the first stage that also with escalation clause which will bring a flood of resale units in the market the moment BBA is signed on payment of 30% cost.

    Specs do not ring a bell as flooring is vitrified tiles and no clear indication about airconditioning. In every probability it would be split ACs. This is no way an ultra luxury-not even a luxury project.

    Due to all this confusion, I have asked my broker to hold my cheques with Ireo which he had handed over to them. I am most likely going to let this pass and invest maybe in Hibiscus II or any other suggestions by senior members.

    What was this Heritage I on GCX? Please throw some light on this one!

    Thanks in anticipation of advise and Cheers.

    CA.


    very well written post. It is evident atleast in the forum that lots of previous ireo investor , who possibly had decent experience in their previous projects, are invariably bypassing this project based on some very valid reasons. Your post has summarized a thinking of quiet a few people.

    I am sure this message would be going to all the builders who have had launches at prices devoid of fundamentals . While some of them may still end up declaring ' all sold out ' , and even if true , the detoriation in quality will have lot of impact on the performance of the project.

    Hope these are warning bells for the market that weeds out the unhealthy elements to protect the larger health of the market , even if it causes some turbulences for some time.

    The same hold true for Tata / Emaar in dew and DLF in New Gurgaon.
    CommentQuote
  • Originally Posted by "kinjalchato


    While some of them may still end up declaring ' all sold out ' , and even if true , the detoriation in quality will have lot of impact on the performance of the project.

    .


    KC- if as you say the project is truly "sold out" at a price which is the builders ask, why wud there be a deterioration in the quality or performance of the project ?
    They got what they asked for, whatever the suckers may say- or continue to comment about the unethical/absurd pricing ...

    Not justifying ... Just asking!
    CommentQuote
  • Originally Posted by Magadh_Pride
    KC- if as you say the project is truly "sold out" at a price which is the builders ask, why wud there be a deterioration in the quality or performance of the project ?
    They got what they asked for, whatever the suckers may say- or continue to comment about the unethical/absurd pricing ...

    Not justifying ... Just asking!


    This is my pov for all these new launches

    Fair question and the key is the trueness of the ' sold out ' part . As i keep on mentioning that parking your inventory with your authorized/ unauthorized agents and proclaiming ' sold out ' is not sustainable .If the traditional long term players capable of holding on well beyond the 30% are part of the sold out story , however based on my interactions it may be more of the short term 30% kind. Now as very well articulated by cheeky, if around the 30% milestone , the resale price is not significantly high and the builders keep on releasing more and more inventory at these prices, the 30% players will be under lot of stress and if many default on the payments, the project roll out is bound to suffer. unless these builders do not build at all , going against the norms of their previous projects ( especially for Tata & ireo ).

    when i said detoriation in quality , i meant the quality of people invested in the project in terms of their capability of holding on to the project till its completion. In the absence of the sustained cash flows, a project execution is bound to be impacted. Even if builders are of sound financial health , they can not sustain project roll outs in the absence of sustained cash flows from their customers.
    CommentQuote
  • Thanks, this is very valuable info. Did you talk to the company directly on phone? I am trying to get some more information but have been unable to do so. I have paid a cheque of 16L for 3BHK, but have not been informed about the options. I was looking for a non-PLC unit. Is there a site or a brochure which says 2200 units?

    Also, I had asked for another unit and he had told me that units re available at the old price. Someone in this forum mentioned that the price has gone up. Any idea about this.

    Originally Posted by Cheeky AlAn
    Dear co members,

    Reading last 3 days posts was very enlightening and learning experience. Hats off to all for such inputs.

    Now to come to ground reality of 67A. I had filled no other form except CIBIL but my allotments had started and were being done and all the 3BHK's offered to me in Tower B are like row houses with one side exposure. Two perpendicular sides are adjoining units and other side is half open and common between two units on the opposite side. As informed on phone, there is absolutely no space between the towers as they are adjoining each other. 2200 units in a 40 Acre land seems too much. 600 PSFT. for parking would be added in a 3BHK unit and PLC's vary from 6-15%. For a non PLC 3BHK 17 lac has to be paid now, 17 on completion of 45 or 60 days and around 22 on excavation which in every liklihood would be around Q4 of 13. To sum up 56L for each unit paid in 7-8 months and with over 1000 units sold in first tranche, what premium could you expect??? Maybe sheer 500-1000 after 1 year which would not be so good especially with the risk involved in this project as due to large number of units, exit might not be as easy as we think. One good option they have given is that you can cancel your booking if the unit allotted is not of your choice.

    With Ireo's hands full with under construction projects, a project of this magnitude is almost impossible to complete in decent time frame. Have no idea what possession date engagement has been mentioned in the papers.

    Ireo has learnt that sale of units at a higher price at a later stage becomes difficult due to competition with resale market-hence my thought is that we would not see price rises in this project like we used to see in their earlier projects as maximum number of units have been sold in the first stage that also with escalation clause which will bring a flood of resale units in the market the moment BBA is signed on payment of 30% cost.

    Specs do not ring a bell as flooring is vitrified tiles and no clear indication about airconditioning. In every probability it would be split ACs. This is no way an ultra luxury-not even a luxury project.

    Due to all this confusion, I have asked my broker to hold my cheques with Ireo which he had handed over to them. I am most likely going to let this pass and invest maybe in Hibiscus II or any other suggestions by senior members.

    What was this Heritage I on GCX? Please throw some light on this one!

    Thanks in anticipation of advise and Cheers.

    CA.
    CommentQuote
  • Originally Posted by Lazybell
    I have advised my clients otherwise...
    And hope to add clients by continuing to advise otherwise...

    Aristotle, the father of logic, taught me that present a case and be ready to provide answers to questions...
    Ayn, Aristotle's only worthy heir, taught me never to indulge in and never to give in to 'Argument from Intimidation'... :)

    Reputations in the market are built on actions, and the unavoidable consequences that actions always have...

    ps. If it came down to walking on a road, roads inside Ireo projects might just be preferable... :)


    i appreciate the logic and tenor of the argument, though differ on your judgement on this project. That is the nature of a civilized debate , we all can and should try to respect each others view even if you defer. Easy to preach but very difficult to practice. will try more and more .
    CommentQuote
  • Originally Posted by kinjalchato
    This is my pov for all these new launches

    Fair question and the key is the trueness of the ' sold out ' part . As i keep on mentioning that parking your inventory with your authorized/ unauthorized agents and proclaiming ' sold out ' is not sustainable .If the traditional long term players capable of holding on well beyond the 30% are part of the sold out story , however based on my interactions it may be more of the short term 30% kind. Now as very well articulated by cheeky, if around the 30% milestone , the resale price is not significantly high and the builders keep on releasing more and more inventory at these prices, the 30% players will be under lot of stress and if many default on the payments, the project roll out is bound to suffer. unless these builders do not build at all , going against the norms of their previous projects ( especially for Tata & ireo ).

    when i said detoriation in quality , i meant the quality of people invested in the project in terms of their capability of holding on to the project till its completion. In the absence of the sustained cash flows, a project execution is bound to be impacted. Even if builders are of sound financial health , they can not sustain project roll outs in the absence of sustained cash flows from their customers.


    Fully agree with you KC. The Ireo 2 Billion or so called cash bunch is not stuck in cash but most probably in unsold inventory and other land purchases and developments which do call for a big upfront payments before the project comes to a pre launch stage. Ireo, if wants to make money in the long run, has to sooner than later behave like other builders to some extend to optimize returns which is always at the cost of the investors/buyers and this does not ring good bells for RE investor/buyer community.

    My reading of the RE market could be grossly wrong according to some RE Pundits but past behaviour of almost all the Big Boys of RE proves this point. A-Z koie bhi doudh ka dhula nahin hae-hum sabko mila kae.

    So do your due diligence and have the courage to say big NO to unreasonable behaviour of the lobby on the other side of the fence and if not, have the courage to accept loss in anticipated profit. None is holding a gun on anybody's head to buy at these prices and above all unacceptable conditions tagged with the allotments.

    So chill, be good, invest with wisdom and stay healthy.

    Cheers.

    CA.
    CommentQuote
  • It was thoroughly enjoyable to read high quality arguments from manoj , rushil,abc111, ajgupta, amitgargi, lazybell , cheeky and others whom i may have missed, irrespective of their views on the subject under discussion.

    These are one of the several reasons why we are so addicted to IREF and my request to all is that let us keep these debates healthy , devoid of personal acrimony and name calling direct or indirect .

    my earnest desire and hope is that slandering has not and should not have any place iref.
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  • Cheques banked.
    CommentQuote
  • Lazybell, Thanks for the info. Have the customers been informed about the units allocated to them and do they have a choice of units? Thanks.


    Originally Posted by Lazybell
    Cheques banked.
    CommentQuote
  • Originally Posted by "kinjalchato


    This is my pov for all these new launches

    Fair question and the key is the trueness of the ' sold out ' part . As i keep on mentioning that parking your inventory with your authorized/ unauthorized agents and proclaiming ' sold out ' is not sustainable .If the traditional long term players capable of holding on well beyond the 30% are part of the sold out story , however based on my interactions it may be more of the short term 30% kind. Now as very well articulated by cheeky, if around the 30% milestone , the resale price is not significantly high and the builders keep on releasing more and more inventory at these prices, the 30% players will be under lot of stress and if many default on the payments, the project roll out is bound to suffer. unless these builders do not build at all , going against the norms of their previous projects ( especially for Tata & ireo ).



    I agree with your "meltdown at 30%" postulates but we have also seen examples when Builders by design delay or slow down the projects and it helps better the ROI for investors - and realise better original sales for builders themselves

    You mention Tata and Ireo- but you would agree that a large reason for ROI in Raisina and Skyon is on account of delays ....Skyon rose from 6500 to 10500 without a brick being laid or a pin hole in the ground...

    I guess what i am saying is that If the resale market is not healthy at the 30% stage, all that ireo has to do is to keep sitting on the money and not proceed any further till it picks up. Excuses cud be lack of water to lack of EC... Investors won't mind it anyways ....
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  • Originally Posted by SunnySM
    Lazybell, Thanks for the info. Have the customers been informed about the units allocated to them and do they have a choice of units? Thanks.


    unit no allotted already.
    CommentQuote
  • Originally Posted by Magadh_Pride
    I agree with your "meltdown at 30%" postulates but we have also seen examples when Builders by design delay or slow down the projects and it helps better the ROI for investors - and realise better original sales for builders themselves

    You mention Tata and Ireo- but you would agree that a large reason for ROI in Raisina and Skyon is on account of delays ....Skyon rose from 6500 to 10500 without a brick being laid or a pin hole in the ground...

    I guess what i am saying is that If the resale market is not healthy at the 30% stage, all that ireo has to do is to keep sitting on the money and not proceed any further till it picks up. Excuses cud be lack of water to lack of EC... Investors won't mind it anyways ....


    Exactly to the point.
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  • There is only one way to charge premium as a builder - please your investors... :)
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