Just got to know that Ireo is launching studio apartment in sector 59/60 at 15000 per sq feet. Min size 900 sq feet . These will be managed by Grand Hyatt as the proposed 7 star hotel is also at the same location.
Apart from it there are retails shops at 35k per sq feet. Do not have full info but will update as and when I get complete info.

If any other member has got some more info, kindly share.
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  • Some additional info from broker mail
    The sizes are 555/925, 758/1263, 955/1592 for the carpet/super area of service, 1 bedroom and 2 bedroom options.

    Rate 13500 psf
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  • And for a limited period, after which the rate to increase to 15,000/-
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  • Does IREO Mgt really think people would pay that much for studio /1 bed..
    if this is the pricing what should the pricing for flats in the vicinity!
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  • I have seen the spreadsheet they are using to convince brokers to pitch this project... The cash flow is based on an assumption of studios being hired 75% occupancy and per day rate of 8500/ day

    The yield is about 13%...after paying for the costs and management expenses

    (But they have cleverly not mentioned the cost of funding during the 5 year construction period):D


    Originally Posted by nitinchawla
    Does IREO Mgt really think people would pay that much for studio /1 bed..
    if this is the pricing what should the pricing for flats in the vicinity!
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  • I think IREO Guys plan to project themselves as ULTRA PREMIUM and are leaving no stones unturned to reach that objective. The first thing to do in such a situation is to launch their projects above prevailing market prices to a select few (obviously only a select few will be able to shell out these prices) and then maintain an edge over competition by providing exceptional ambience and services. This is possible only when you have a huge land cachement in one particular area and you project that area as ULTRA PREMIUM, and provide amenities to that effect, and develop that area in totality in that direction. That is what IREO is aiming to do. They are yet to launch any Commercial / Office space but mark my words. That will be priced in such a way and will be projected in such a way that if you want to flaunt an address, it has to be IREO, rest all is way way below.

    And once they have managed to do that, they will have number of top executives making a beeline to get hold of these properties. The only catch is they are yet to deliver ! They only have high pitch sales as on date, so there are maybe only 1% people who believe them. Rest all are sitting on sidelines.

    Only time will tell whether they are able to dwarf DLF with their weight or DLF outmaneuvers them remains to be seen. But as on date they are positioning themselves as the TOP DESTINATION IN GURGAON.
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  • Originally Posted by rushilarora
    Just got to know that Ireo is launching studio apartment in sector 59/60 at 15000 per sq feet. Min size 900 sq feet . These will be managed by Grand Hyatt as the proposed 7 star hotel is also at the same location.
    Apart from it there are retails shops at 35k per sq feet. Do not have full info but will update as and when I get complete info.

    If any other member has got some more info, kindly share.


    are you RE Bull in the mask of a Bear ?
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  • Pasting from the email I received from broker ,


    IREO presents premium Serviced Apartments, a project that offers the luxury of hotel like immaculate services with the personalized feel of home. Located in IREO City, a Mega New-Age Integrated Township development spread over 750 Acres in Sectors 58, 59, 60, 61 on Golf Course Extn Road which is on the way to developing as the most premium micro-market in Gurgaon. The site for IREO's Upscale Branded Serviced Apartments is on the intersection of two 60 Meter Wide Main Sector Roads in the heart of the Ireo City.
    This will be a part of a 4 Acre Mixed Used - Hospitality, Retail and Entertainment unit- located in the heart of Ireo City where the Ground & First Floor shall be Retail & Entertainment over approx 1,30,000 Sq.ft of area
    and second floor upwards will be the Upscale Branded Serviced Apartments.
    The project will be managed by ‘IREO Hospitality Management Company’ the hospitality business
    arm of IREO. The developer will also tie-up with a premium International Hospitality operator to ensure incomparable quality standards.

    There are 2 options of Serviced Apartments available -
    Type A - If the objective is primarily for an investment that gives Annuity Return and Appreciation. In this case, a Premium International operator shall be engaged to manage, operate and market the units under this pool for a period of 15 years. The product shall be maintained to world-class standards and marketed through-out the Operator’s international network for Value Maximization.
    Type B - If the objective is primarily for Self Use with the flexibility of putting on rent when required.- Shall be maintained by IREO Facilities Management Team, the unit owner shall be entitled to opt for Self use or renting to Third Parties as per his \ her discretion.
    Fully Furnished, Equipped & Ready To Live In Apartments in configuration of
    Unit Type Built-up Area (Sq.ft) Super Area (In Sq.ft)
    Studio Apartment 5 55 Sq.ft 925 Sq.ft
    1 BHK 758 Sq.ft 1263 Sq.ft
    2 BHK 955 Sq.ft 1592 Sq.ft

    Common facilities and services include Library Lounge, Multi Cuisine Restaurant, Swimming Pool, Fitness Centre, Business Centre, Convenience Stores.

    Why should one invest?
    High annual return and appreciation with low Operating and fixed costs
    Immense Potential for Capital Appreciation
    Favorable Demand Supply Ratio in the fastest growing market- Gurgaon
    The Concept of Serviced Apartments - The fastest growing vertical within the High Growth Indian Hospitality Industry
    The applicable price is Rs 13500 per sq ft (minus inaugural discount) in soft launch.
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  • Just a middle class service guy trying to maximise return on my investible surplus with safe investment as underlying theme.

    Originally Posted by gurgaon79
    are you RE Bull in the mask of a Bear ?
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  • Any existing references for service apartments in NCR? In terms of occupancy rates and expected rentals for benchmarking purposes ??
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  • they havent launched retail as yet /??
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  • Studio

    My POV expressed on another thread but on same question....

    Studio Appt :- Investment Decision


    Even I was contemplating few months back to invest in studio apartment in Gurgaon. But after doing the due diligence I gave up the thought of buying one purely for the investment. Yes If I had extra money, I will definitely buy one for myself but for investment it doesn’t make sense to me. I would like to list down the reasons which made me go against the service apt as an investment. I call them 4C's of Consideration before you act.

    1. Concept:- This is a wonderful concept but more apt for western countries where the culture is more of being independent and people like to do their things on their own. Right from car wash, gardening, ironing of cloths etc. every day to day job is done by individuals themselves. India is absolutely opposite. We are spoilt for having servants for everything. From Guards standing outside your home, to many maids doing the day to day Corus, to Gardner to driver, to servants , to cooks and many more. Hence we demand the same where ever we go. That’s where the concepts of "Service" it taken for granted and we expect the same everywhere.

    Studio appt does not help this cause unless it is backed by excellent Service. Unless we are very sure of the service quality coming with the studio appt, it would be a risky investment.

    2. Cost :- Studio apartment initially developed as a cheaper alternative to guests who wanted a longer stay in a particular location. Paying hotel rent was far expensive hence studio/service apartment came as a cost effective alternative.
    Unfortunately in India the start itself is not promising for investment. With one 500-600 ft apartment costing 60-90 lakh and then the future cost of maintenance which I am sure will be much higher then residential apartment, doesn’t make a strong business case to invest. Cost of holding plus cost of Maintenance negates the expected return. Also resale of such apartment will be very tough . So if one needs money on urgent basis, this will be highly ill liquid investment.

    3. Competition :- NCR is still reeling under the aftermaths of CWG 2010. Without any business logic hundreds of plots were given for new hotels. Some have already started the operation and many are still undergoing construction. In next 2-4 years Gurgaon will have over supply of all kinds of hotels. Current occupancy is not more than 50%. Barring Leela in gurgaon, most of the hotels are going under 50% occupancy rates.

    NCR has a further pipeline of 9900 rooms in next 3 years out of which around 4000 would be the premium rooms. Apart from this 13 hotels are in the final stage of construction in Aero city coming up at IGI Airport. This area will be a complete destination city in itself with Conference areas,mall,shopping etc and the best connectivity in town. Quick entry and quick exit is the USP of this area.

    Apart from this development there are already numerous service apartments available in Gurgaon, with excellent service, homemade food and best of personalized service.
    Just check one of the website and see the quality of appat available for rent.
    Service Apartments Gurgaon - Rent Serviced Apartments in Gurgaon

    4.Consumer :-Imagine with all this and more coming up in Gurgaon ,the kind of price war that will erupt. Consumer would be spoilt for choice and the rates would take a nosedive. All of them are backed by excellent marketing support and networking to fill up the rooms. How would an individual service apartment owner cope up with the competition and ensure he gets his room booked for at least 15 days in a month.

    These were the consideration that led me let go the idea of investing in Studio apartment.

    I would rather spend the same amount in travelling across the world, learn more about other cultures, enjoy life . Though this would not yield any return to me for the capital employed, yet these moments would be priceless which I am sure no investment could Return .

    Happy Investing !!
    Originally Posted by Magadh_Pride
    Any existing references for service apartments in NCR? In terms of occupancy rates and expected rentals for benchmarking purposes ??
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  • Also , Ultra luxurious are first one to crash when bubble actually bursts.
    E.G is USA RE , Australia RE

    Take any Jet Flight and you will see sobha internationalcity Ads. Means they are still not able to sell that project inspite of the big name they have.

    DLF Phase 1-5 became top investments because they were extensions of posh colonies of South Delhi.

    D-Eway is extension of Dwarka which is not considered as posh.. so it may not be as good as DLF Phase 1-5 in coming future.
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  • would you guys suggest to buy a studio/service apprtment if its available for 15-18 lacs? I am looking at supertech's up country safari studios
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  • is there anyone to reply please?
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  • Pls PM me any contacts for this.
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