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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  • - 8750 was the pre-pre-launch price, it happened a month or so ago, not aware if you can get an unit at that price now.
    - The new price being touted is 9400 psf.
    - The route for initial allotment was via preferred brokers.
    - IREO has not started taking open bookings yet so you would need to go via preferred brokers for this.
    - PLCs are high going upto 1250 Rs.
    - There is an un-defined escalation clause.
    - Car Parking was said to be 6 Lakhs over the bsp cost.
    - Club cost unknown but expect between 3 to 5 lakhs.
    - EDC/IDC are almost same across all Gurgaon (around 290/30 respectively)
    - As per my calculations, the smallest unit (1296 sqft) will cost around 1.4 Cr assuming 8750 BSP and 750 PLC and not including Club cost/ Registration/Stamp duty costs.

    I know this thread is very long having started almost 2 yrs back but if you go through it, you will viewpoints of both sides - the pro-67A club and the one against it.

    Originally Posted by NK2013
    Hey guys. Can someone provide a quick background for this project. So the current price is INR 9,400 psf + PLC (INR 200 to 1,250 psf depending on unit?)? Its confusing as I saw some broker email talking about INR 8,750 psf price? Any idea about other charges EDC, IDC, Car Park, Club etc etc

    What's the basis for getting a unit allotted - is it a draw, first come basis or preferred brokers basis?

    What's better way to apply - through a company or a broker?

    What do you think about this project - price, location, quality? How does this compare to existing projects on GCX including Ireo Uptown, Pioneer Park, H1, Victory Valley?

    Realize that ROI may be better on this one given less upfront. However, given location advantage of existing projects - do you think they have more potential to appreciate (especially if new launch price of Ireo 67A is higher than secondary prices of these projects)?

    Are you aware of any other new launches around GCX area?

    I know I have been asking a lot of questions to some of you in various threads - hope everyone goes though this initial part of learning curve in this forum!

    Will appreciate your time and thoughts.

    Best Regards
    CommentQuote
  • If one really scouts hard, he/she still can get the unit at original booking of 8750/-

    Originally Posted by sh-saxena
    - 8750 was the pre-pre-launch price, it happened a month or so ago, not aware if you can get an unit at that price now.
    -
    CommentQuote
  • Reconstructed....

    Originally Posted by NK2013


    - Hey guys. Can someone provide a quick background for this project :- It has a huge backgorund. 2 years of it.. You can check this entire thread.


    - So the current price is INR 9,400 psf + PLC (INR 200 to 1,250 psf depending on unit?) - Depends on whom you consult... Try speaking to a desperate broker and you will still get it at 8750/-

    - Its confusing as I saw some broker email talking about INR 8,750 psf price? Thats what they are supposed to do. The one who was talking about 8750/- is ur target to get a deal.

    - Any idea about other charges EDC, IDC, Car Park, Club etc etc - Already explained by Sh- Saxena.

    - What's the basis for getting a unit allotted - is it a draw, first come basis or preferred brokers basis? Only on the basis of Cash in you bank account. Show them the money and they will dance to your tune...

    - What's better way to apply - through a company or a broker? The one who gives you a better deal. Broker can always pass back some commission.

    - What do you think about this project - price, location, quality? A very long term story. 2k units supply will always keep the price in check. Plus the moment payout crosses 50% level, the price would stagnate just like IVV in last 6 months.


    - How does this compare to existing projects on GCX including Ireo Uptown, Pioneer Park, H1, Victory Valley? Exact Location - Not Known yet, Acess Road - No one knows, Specifications - Still a Mystery. So how can one compare it with the ones mentioned by you.

    - Realize that ROI may be better on this one given less upfront. However, given location advantage of existing projects - do you think they have more potential to appreciate (especially if new launch price of Ireo 67A is higher than secondary prices of these projects)? -

    This is a million dollar question in gurgaon at the moment. ROI would be good only when you book profit. So unless you see a premium on this project you cant calcualte that. Secondly, due to its pricing a big chunk of your money (approx 35L for 3bhk) would go away in first 9 months.
    So even if you get a premium of Rs 500 in 2bhk unit, you wont make more than 5-6 lakhs and if you factor in transfer and broker charges, there wont be anything left for you on the platter. Whatever pittance left on plate dosent justify the risk reward ratio.

    The moment it reaches 50% payout level, you would have 1000+ other investors flocking the market to sell it along with big Daddy IREO scouting for new clients with their Subvention/PLP scheme (like the one going on in GA right now).


    Confused again ??? Well that wasnt my intention.... This post could come across as little harsher reply to your worries... But thats the stage we all are entering in gurgaon right now....

    Moral of the story, if you can enter in this project with Min 3 years perspective, it can give you better ROI as compared to other projects on Gcx. Any investment for less than 3 years will not justify the risk required.

    So Whats the solution ? If you want to get in Gcx and have money in all colours, try and get in any of the projects mentioned by you for a less than 3 years investment scenario

    All the best

    RA.


    Are you aware of any other new launches around GCX area?

    I know I have been asking a lot of questions to some of you in various threads - hope everyone goes though this initial part of learning curve in this forum!

    Will appreciate your time and thoughts.

    Best Regards
    CommentQuote
  • Thanks for the details sh-saxena. Very useful.

    Regards

    Originally Posted by sh-saxena
    - 8750 was the pre-pre-launch price, it happened a month or so ago, not aware if you can get an unit at that price now.
    - The new price being touted is 9400 psf.
    - The route for initial allotment was via preferred brokers.
    - IREO has not started taking open bookings yet so you would need to go via preferred brokers for this.
    - PLCs are high going upto 1250 Rs.
    - There is an un-defined escalation clause.
    - Car Parking was said to be 6 Lakhs over the bsp cost.
    - Club cost unknown but expect between 3 to 5 lakhs.
    - EDC/IDC are almost same across all Gurgaon (around 290/30 respectively)
    - As per my calculations, the smallest unit (1296 sqft) will cost around 1.4 Cr assuming 8750 BSP and 750 PLC and not including Club cost/ Registration/Stamp duty costs.

    I know this thread is very long having started almost 2 yrs back but if you go through it, you will viewpoints of both sides - the pro-67A club and the one against it.
    CommentQuote
  • Thanks Rushil for your thoughts. Harsh or not - you reply is informative in either case and at least looks a bit conclusive about your view.

    Why do you think existing GCX projects will provide lower ROI than 67a after 3 years - asking as I have longer than 3 years horizon? Given 67a is being launched at a higher price (more than 15 to 20% higher than secondary prices at gcx including plc) and has an inferior location ~ existing GCX projects should still command a premium in 3 years from now? Obviously, this is assuming location is at least as important as specs (if 67a specs are better)?

    If 67a was being launched at similar location or inferior location but at similar prices n better specs - Then I would think ROI was better in 67a?

    Let me know if I am missing anything in my analysis ~ except the fact that speculative/investor activity in project with lower upfront payment and lower coloured component will be much higher than a near to RTM project:)

    Also, I would appreciate if you could check my recent comment in Ireo victory valley thread and provide feedback:)

    Regards


    Originally Posted by rushilarora
    Reconstructed....
    CommentQuote
  • Originally Posted by NK2013
    Thanks Rushil for your thoughts. Harsh or not - you reply is informative in either case and at least looks a bit conclusive about your view.

    Why do you think existing GCX projects will provide lower ROI than 67a after 3 years - asking as I have longer than 3 years horizon? Given 67a is being launched at a higher price (more than 15 to 20% higher than secondary prices at gcx including plc) and has an inferior location ~ existing GCX projects should still command a premium in 3 years from now? Obviously, this is assuming location is at least as important as specs (if 67a specs are better)?

    If 67a was being launched at similar location or inferior location but at similar prices n better specs - Then I would think ROI was better in 67a?

    Let me know if I am missing anything in my analysis ~ except the fact that speculative/investor activity in project with lower upfront payment and lower coloured component will be much higher than a near to RTM project:)

    Also, I would appreciate if you could check my recent comment in Ireo victory valley thread and provide feedback:)

    Regards


    Going through the thread of latest resale prices ..park view spa next seem to be available in resale for 7600 , and on Merlin M3m thread it's stated it's available for 6800 ! Better locations going cheaper than 8750 IREO's corridors . Looking at M3M price it seem to fail all the other projects on GCX in price comparison , even on SOHNA road and new launches at DEW ;)


    some resale pricing indication from a broker : (copy pasted from the thread)


    GOLF COURSE EXTN.

    IREO VICTORY VALLEY, Area 2450 Sq ft ,3 bhk,higher middle floor Demand 8600

    IREO VICTORY VALLEY, Area 2420 Sq ft ,3 bhk,lower middle floor Demand 8700

    IREO VICTORY VALLEY, Area 2420 Sq ft , 3 bhk , higher middle floor Demand 8700

    Unitech escape ,area 2050 sqft,3bhk,middle floor,booking 4750,demand 8500 maximum cheque

    IREO UPTOWN 1421 Sq ft ,2 bhk higher floor, booking 4000, Demand 9000

    IREO UPTOWN 1421 Sq ft ,2 bhk lower middle floor, booking 4000, Demand 8500

    Ireo skyon,tower C,area 2014 sqft,3bhk,lower floor,maximum cheque, park facing,demand 10900

    IREO SKY ON , Area 1524 sq ft, 2 bhk, lower floor, Demand 10600

    TATA RAISINA,AREA 2374, 3bhk , lower floor demand 9600 Full Cheque

    BESTECH PARK VIEW SPA NEXT, Area 1935 sq ft,3bhk,higher floor,booking 3045 Deamnd 7600 rs

    BESTECH PARK VIEW SPA, Area 2470,3bhk,middle flr, demand 10500

    Karanveer society,Area 2200 Sq ft,middle floor,3bhk,Demand1.45 cr,transfer case
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  • Not that complicated... You have answered your question yourself...

    The reason for higher ROI in 67a in next 3 years is purely on the basis of cash flow.
    If you see both Skyon and IVV. In the first 2 years of their launch only 30-40% payment had gone respectively. Now the pace of construction has picked up and the demands are coming in every two months now.

    So for a project like 67a in 40 acres, I think the first two years will entail not more than 40% of payment and by the third year not more than 60% payment would go.

    However in next one year both skyon and IVV would have taken 80% of the payment or in case of IVV 90% of the payment would have gone..


    This is where the ROI of 67a would beat IVV and Skyon.

    The biggest caveat in this game of ROI is that all these are notional returns. One needs atleast 6 months from the date of taking a decision, to liquidate the property.

    In absolute return IVV and Skyon will give better return then 67a always. But there is a short term window of making better ROI with 67a between 24th month to 36th month from today.

    Only a seasoned investor should attempt this as timing is the key.

    I feel the best time to enter 67a would be just before the third payment is called for and transfer is allowed. You will for sure get many distress deals at that time with almost nil premium.

    Best time to exit would be when the 60% payment call comes in. This is the only sweet spot available for investors in 67a...

    Hope you got what I was trying to explain...

    All thes best

    RA

    PS:- This is a pure hypothesis which is based on my whims and fancies.. Do not hold me responsible if you dont make money by following this , but if you do make money then dont forget to call me over for a Beer... :)



    Originally Posted by NK2013
    Thanks Rushil for your thoughts. Harsh or not - you reply is informative in either case and at least looks a bit conclusive about your view.

    Why do you think existing GCX projects will provide lower ROI than 67a after 3 years - asking as I have longer than 3 years horizon? Given 67a is being launched at a higher price (more than 15 to 20% higher than secondary prices at gcx including plc) and has an inferior location ~ existing GCX projects should still command a premium in 3 years from now? Obviously, this is assuming location is at least as important as specs (if 67a specs are better)?

    If 67a was being launched at similar location or inferior location but at similar prices n better specs - Then I would think ROI was better in 67a?

    Let me know if I am missing anything in my analysis ~ except the fact that speculative/investor activity in project with lower upfront payment and lower coloured component will be much higher than a near to RTM project:)

    Also, I would appreciate if you could check my recent comment in Ireo victory valley thread and provide feedback:)

    Regards
    CommentQuote
  • Thanks Rushil. I am not a seasoned investor and don't have that level of expertise/time flexibility to move around my investments to follow such strategy. So I am likely to follow a bit more conservative approach and invest for medium term (and hold on to it for a while).

    But I can always call you for a beer when I am in India next:) and will continue bothering for your views on different things in the meantime!

    Much appreciated.

    Cheers


    Originally Posted by rushilarora
    Not that complicated... You have answered your question yourself...

    The reason for higher ROI in 67a in next 3 years is purely on the basis of cash flow.
    If you see both Skyon and IVV. In the first 2 years of their launch only 30-40% payment had gone respectively. Now the pace of construction has picked up and the demands are coming in every two months now.

    So for a project like 67a in 40 acres, I think the first two years will entail not more than 40% of payment and by the third year not more than 60% payment would go.

    However in next one year both skyon and IVV would have taken 80% of the payment or in case of IVV 90% of the payment would have gone..


    This is where the ROI of 67a would beat IVV and Skyon.

    The biggest caveat in this game of ROI is that all these are notional returns. One needs atleast 6 months from the date of taking a decision, to liquidate the property.

    In absolute return IVV and Skyon will give better return then 67a always. But there is a short term window of making better ROI with 67a between 24th month to 36th month from today.

    Only a seasoned investor should attempt this as timing is the key.

    I feel the best time to enter 67a would be just before the third payment is called for and transfer is allowed. You will for sure get many distress deals at that time with almost nil premium.

    Best time to exit would be when the 60% payment call comes in. This is the only sweet spot available for investors in 67a...

    Hope you got what I was trying to explain...

    All thes best

    RA

    PS:- This is a pure hypothesis which is based on my whims and fancies.. Do not hold me responsible if you dont make money by following this , but if you do make money then dont forget to call me over for a Beer... :)
    CommentQuote
  • the overall RE market is slow. There is a hype that everytihng is selling like hot cakes but we know better than that. Patience is a virtue that'll pay in the long run.

    some thoughts
    -- 9400 is steep for Corridors. Agree with Rushil that you'll get almost launch like deals just before transfer is allowed.
    -- Victory Valley : market is slow - you can still get a good deal at 8800-9000 psft but significant upfront payout and be ready to pay every 2 months from here on.

    Though Ireo hasnt delivered, i have liked my transactions and communications with them. They are usually no-nonsense, transparent and professional unlike various others in gurgaon. The key to Ireo will be timely and quality delivery of grand arch...if they can pull that off, that'll be a feather in their had and their brand value will spike and so would the premium on their projects.
    CommentQuote
  • Good you dont follow this strategy... It guaratees loss of peace of mine...

    But yes, for Beer I am always game...

    All the best

    RA

    Originally Posted by NK2013
    Thanks Rushil. I am not a seasoned investor and don't have that level of expertise/time flexibility to move around my investments to follow such strategy. So I am likely to follow a bit more conservative approach and invest for medium term (and hold on to it for a while).

    But I can always call you for a beer when I am in India next:) and will continue bothering for your views on different things in the meantime!

    Much appreciated.

    Cheers
    CommentQuote
  • Any Resale Query Guys...?
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  • Could anyone tell me as to how many total apartments are there going to be in this complete project?
    CommentQuote
  • Originally Posted by ng13
    Could anyone tell me as to how many total apartments are there going to be in this complete project?


    2200+ as of now.
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  • The project has 5 acres for a school, 2 smaller schools, 1.5 acres for a top end hospital, and two football grounds...
    The school and hospital should add value to the project...
    This is the reason for the license confusion... :)
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  • An indoor basketball court and two football grounds... It will attract a lot of people to make this place their home, rented or owned...

    Add the hospital and school and you have a place that many would like to live in; for one or the other reason...

    Added to this will be the quality and brand of Ireo; how much this amounts to will of course be known only after delivery of Grand Arch, but there is all the reason as of now to safely assume that this will add value to quality of life...

    ps. This thread seriously needed some non-obituary comments... :p
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