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How Much Profit Do Builders Make in Gurgaon?

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How Much Profit Do Builders Make in Gurgaon?

Last updated: November 15 2012
18 | Posts
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  • #11

    #11

    Re : How Much Profit Do Builders Make in Gurgaon?

    Originally posted by kinjalchato View Post
    There are no plots in vipul green, sohna road and i do not know of any other vipul green in gurgaon. Please do check.
    Kinjal please chato mat.. it was vipul world..

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    • #12

      #12

      Re : How Much Profit Do Builders Make in Gurgaon?

      Originally posted by BlessMe View Post
      Kinjal please chato mat.. it was vipul world..
      good to know.

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      • #13

        #13

        Re : How Much Profit Do Builders Make in Gurgaon?

        reasonable price in sec 22/sec22-A

        what should be the "reasonable" price for a newly constructed (good sprecs -- italian marble, wood work etc) 263 yd. floor (First or Second)?

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        • #14

          #14

          Re : How Much Profit Do Builders Make in Gurgaon?

          Originally posted by amkhan View Post
          what should be the "reasonable" price for a newly constructed (good sprecs -- italian marble, wood work etc) 263 yd. floor (First or Second)?
          1.3-1.5 cr

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          • #15

            #15

            Re : How Much Profit Do Builders Make in Gurgaon?

            Originally posted by BlessMe View Post
            I know a person who brought a 200 sqy plot in Vipul Greens, Sohna Rd in May 2011 for 1 cr.

            He constructed 3 floors (with very high specs - italian marble etc.) - spent close to 80 lakhs.

            The cost of land appreciated by 50 lakhs from May 2011 till today. So lets say if someone buys land today, it will be 1.5 cr.

            He is now selling each floor at 1.1 - 1.2 cr. But I dont think he will get customers at this price. Lets say he will sell at 1 cr. So he makes around 3 cr total sales.

            So, the profit (excluding land appreciation) is 65 to 70 lakhs.

            Including land appreciation it is 1.2 cr.
            Good info. He can sell two floors to recover cost and the third floor is free.

            Very capital intensive business but good returns and low risk.

            Identifying the best plot location with amenities would be crucial for easy sale of the floor.

            Same thing on HUDA plot might not sell at all or with minimum profit so no wonder prices are languishing at 80000 psy which means 1.6 crores just for the plot. You get unsellable floors. End user also doesn't want to build Kothi nowadays.
            Venky (Please read watch a or before posting)

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            • #16

              #16

              Re : How Much Profit Do Builders Make in Gurgaon?

              Venky,

              when you say "same thing might not sell at all on Huda plot", is it in comparison to Vipul world plot floors (discussion above) or in general everywhere?

              Thanks.

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              • #17

                #17

                Re : How Much Profit Do Builders Make in Gurgaon?

                Originally posted by Venkytalks View Post
                Good info. He can sell two floors to recover cost and the third floor is free.

                Very capital intensive business but good returns and low risk.

                Identifying the best plot location with amenities would be crucial for easy sale of the floor.

                Same thing on HUDA plot might not sell at all or with minimum profit so no wonder prices are languishing at 80000 psy which means 1.6 crores just for the plot. You get unsellable floors. End user also doesn't want to build Kothi nowadays.

                Venky , I don't think its a low risk business. But highly risky. one bad deal or stuck deal can eat away profit earned in last 2 years. You may have to weight for 6 months to year to get the right buyer who can pay your asking price.

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                • #18

                  #18

                  Re : How Much Profit Do Builders Make in Gurgaon?

                  Here are some tips -
                  a) Generally its much more difficult to sell floors in HUDA sectors. Even if they are close to developed private colonies! Not sure how long will this trend continue. But yes in today's age building floors in HUDA sectors are RISKY.
                  b) Generally for a good builder margin is 20-25% of (Land Price + Cost of Construction) at date of sale.
                  c) Low risk way is to buy a cheap plot in good private society. This could be a plot in slightly weak location (mind you it should not be very weak), or could be a slight goumukh plot or may be plots which are slightly longer/ shorter.
                  d) Builders also tend to save of material cost by using material which looks glossy but is relatively cheaper. There is Chinese stuff available in market.

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