Heard DLF is coming up with another residential project in New Gurgaon to be priced at ~Rs5500psf.

Not sure whether it will be an extension of Regal towers or a completely new one...... Any clues?
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  • Originally Posted by FarazKhan
    Please don't get me wrong. I am not saying DLF is right or DLF is wrong. Yes 19 Lac is a lot of money to be paid. But still 19 lac is less than 40 lac extra that is coming from your calculation. This clause is straight away abuse of dominant position. But very soon, all big builders are going to follow it. No one likes to leave money on table except a select few.


    If you can get DLF To give you in writing that it will not be a 40 lack increase on a 1.2 cr property. I will humbly bow down to you.
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  • Originally Posted by rahul05
    If you can get DLF To give you in writing that it will not be a 40 lack increase on a 1.2 cr property. I will humbly bow down to you.

    It is for buyer to decide whether he wants to buy with this clause. Builder has given its BBA and if buyer doesn't like he should not buy the builder property.
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  • Originally Posted by FarazKhan
    It is for buyer to decide whether he wants to buy with this clause. Builder has given its BBA and if buyer doesn't like he should not buy the builder property.


    The problem is that 99% of the BUYERS will not even look at this clause unless its pointed out to them. Which NO Broker of DLF OR DLF will ever do.

    And then it will be another case that the Federation has to take up.

    This is one of the reasons I have taken to IREF to educate people on this ESCALATION Clause that will have a significant impact on the cost of the project (Rs 19 lac to Rs 40 lac)
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  • Guys thank you for this healthy discussion about cost escalation clause. I agree to Rahul, he has been a great help to explain this trap for new users here. I would assume if DLF is trying to come with one sided clause which does not explain it in details then it's a time to re-think.

    I had a plan to book in pre-launch but now I guess DLF's credibility is at stake. If they want people blindly believe than at-least clear about these things which could drain much more money out of pocket. One should get a chance to estimate how much it will cost. This clause is as good saying that book a flat without knowing BSP, sign a contract with DLF and we will let you know the total cost after 4 years. I have decided to call off the show for now by not booking but watch for a while. FarazKhan, your efforts seems more to neutralize this cause without pointing fundamental wrongs of the DLF practice.
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  • Originally Posted by matrix_55
    I have read the regal BBA and also seen the past RBI data.
    Let me run this with with average of past 6-8 years of RBI data.

    Total cost of flat = BSP + PLCs + Parking cost, not BSP alone.

    Of this Total cost of flat, 50% is taken as construction cost. This becomes 60-65% of BSP cost on which escalation will be computed. How can anyone in his senses assume 50% of the cost as construction cost?
    So for example if total cost is 6000 BSP + 15% PLC + 6Lac parking or 7200 approx. Now DLF says, it costs 3600 psf as construction cost today and this will be escalated.

    RBI DATA for these items suggests on average 10% increase per year or about 40% in 42 months.. Mind you this has been accelerating of late!

    So you should expect, on average another 40% of 60% of BSP as per past data.i.e 25% of BSP.
    And inflation is what will kill you twice. First you will have to pay high interest rates on your loan. Then you will pay again at possession to cover the builder for the escalation.

    Good Luck.


    Guys what are we arguing abt about 2-4% ?
    I have also run the nos and then only posted the post above. On average, we are talking about 25% increase in price over BSP payable at possession.

    Read the methodology of calculation of construction cost, which is 50% of BSP, PLC and Parking = Its totally screwed up.

    Yes its true that Orris has also included this in its BBA and so has BPTP... maybe more.. but the moot point is some ppl can see it coming, others when they feel the heat.

    BTW, read the regal BBA a bit more.. it says an increase in FSI at later date belongs to the builder and he could construct more towers etc and one cannot protest this.

    One cannot help but chuckle at this dalitisation of the supposedly educated Indian Middle class... they are simply draining you out of your money and charging you for it.
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  • Originally Posted by rahul40
    regal is launch in march 2012,,,,i will ask dlf to give me escalation from March to Dec
    i.e. 10 month.

    lets see how much money come for these 10 month..


    Rahul40,
    I heared that galleria 91 will be launched 13000-16000 & minimum sizes are 1000 sqft. How true it is? Minimum cost will be approx 1.5 cr. I was wondering for getting sufficient returns how much rental one should get..
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  • Is that the best defence you have for DLF. Woh dusra bhi chor to DLF kyon nahi....

    There are other better than DLF builders in Gurgaon like Tata or Besttech or Ireo. I don't think either of theses 3 have the escalation clause in their contract.
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  • Originally Posted by rahul05
    Is that the best defence you have for DLF. Woh dusra bhi chor to DLF kyon nahi....

    There are other better than DLF builders in Gurgaon like Tata or Besttech or Ireo. I don't think either of theses 3 have the escalation clause in their contract.


    for that matter even unitech does not have that clause
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  • vatika has escalation clause and i think even alpha g corp has( pls confirm though for alpha)
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  • Hi
    Greetings

    NO BUILDER,, REPEAT,, NONE OF THEM with an escalation clause are a safe bet.. These are just absurd ways of extracting any and every penny that any buyer wants to earn as appreciation or plan as a budget for his home.. Worst will be the end users who will have no way out but to yield to the builder Buyer Agreement.

    If one is lucky, he will be able to get out of it by paying a minimum of 20-30% over and above the budgeted delivery price.. Others would suffer on account of increased Super Area+Escalation Clause+ other costs embedded, but not explicitly defined in the BBA.

    Investors would get out of the project before 50-60% payment is called.. Builder will call in 90% within 18-24 months and then stall development on one or the other pretext. End users would rue the day when they signed the BBA.

    Here is where accountability and credibility of a builder counts. Unfortunately, both are not available in todays unregulated RE space..

    Stay away from projects with "escalation clause" if planning for long haul.

    Cheers.
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  • Originally Posted by BlessU
    Hi
    Greetings

    NO BUILDER,, REPEAT,, NONE OF THEM with an escalation clause are a safe bet.. These are just absurd ways of extracting any and every penny that any buyer wants to earn as appreciation or plan as a budget for his home.. Worst will be the end users who will have no way out but to yield to the builder Buyer Agreement.

    If one is lucky, he will be able to get out of it by paying a minimum of 20-30% over and above the budgeted delivery price.. Others would suffer on account of increased Super Area+Escalation Clause+ other costs embedded, but not explicitly defined in the BBA.

    Investors would get out of the project before 50-60% payment is called.. Builder will call in 90% within 18-24 months and then stall development on one or the other pretext. End users would rue the day when they signed the BBA.

    Here is where accountability and credibility of a builder counts. Unfortunately, both are not available in todays unregulated RE space..

    Stay away from projects with "escalation clause" if planning for long haul.

    Cheers.


    For what its worth, I completely ageee with this view.

    Sent from my GT-I9100
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  • Originally Posted by rahul40
    tata and Ireo is expensive too much and loading is too much,


    The loading in any DLF project is ALWAYS higher than IREO or TATA. There is a sheet that has been circulated around on IREF with the comparative Super Area to Carpet Area ratio and DLF came at the lowest.

    The Build Quality of both TATA and IREO is FAR FAR better than DLF. Go look at DLF Park Place and then go to an IREO project; you can notice the significant difference.

    DLF uses Grade II contractors for its construction where as Besttech, Tata, IREO either do the construction themselves or use Grade I constructors.

    Now add to this this Escalation Clause that will increase your liability by as much as 25 lac to 40 lac for a 1.2 Cr property at the time of Possession.

    Why would you buy a house that will eventually cost you 1.6 Cr in New Gurgaon rather than buying an IREO flat in Sector 67a (Better Location; Better Builder; No Escalation Clause) for less than that price. Sector 67a (Golf Course Extension is a far more premium location than New Gurgaon.
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  • Mapsko also doesn't have the escalation clause..their newly launched project mount ville does not have esclation clause
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  • Originally Posted by rahul40
    My cost is 82+4 lac=86 lac, so i hav less worries,, total cost is below 5000/-
    people who buy at 6500+ 25% plc,, they have to worry, whose's total cost is 8000/-

    this is first time i came to know L&T is grade 2 contractor, hahaha

    i think you are getting paid to post ''against'' dlf,,
    you better go to USA, where all business run on "blogs"
    companies paid huge money to blogger to don't write bad words on their products

    I don't know why people running behind tata and ireo, when they are charging very high bsp( tata sec 113: 8500-10000) and only project in gurgaon and till now nothing delivered.

    How many esclation clauses are in DLF launches elsewhere all across the country? Maybe Inflation is born and brought up in Gurgaon and is absent in Rest of India.

    Just a passing thought.
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  • Originally Posted by rahul40
    My cost is 82+4 lac=86 lac, so i hav less worries,, total cost is below 5000/-
    people who buy at 6500+ 25% plc,, they have to worry, whose's total cost is 8000/-

    this is first time i came to know L&T is grade 2 contractor, hahaha

    i think you are getting paid to post ''against'' dlf,,
    you better go to USA, where all business run on "blogs"
    companies paid huge money to blogger to don't write bad words on their products

    I don't know why people running behind tata and ireo, when they are charging very high bsp( tata sec 113: 8500-10000) and only project in gurgaon and till now nothing delivered.


    You get funnier by the day rahul40..

    L&T is not a Grade 2 builder but DLF did not use L&T till recently...

    And this Thread is about Sky Court and NOT about your investment in Regal Garden...

    If you are so happy with your DLF property try and contact an agent to sell it...Let me know how easy it is to sell a DLF property at an appreciation...

    I have more knowledge on DLF than the DLF employees...doubt too many bloggers can claim to have that...and I have made is apparently clear on this forum that I am part of the Federation of Apartment Owners Association http://faoaindia.org/; an association meant to protect Home buyers from Malpractices of these Builders.

    WRT Tata and IREO pricing; its not 100% transparent as we would like it but in comparison to DLF its far better.(This statement is my PERSONAL view and not the view of the FAOA)

    If you calculate the obscene 25% PLC's and the 25%-40% Escalation Clause you will realize that DLF is selling you the flats at higher than 9000 psft. Their way of doing it is using abusive clauses in the contract and hidden charges. Have you read the CCI order against DLF. If you have not I would suggest you do.. It will help you understand why the Federation is up in arms against DLF..

    And if you are a Genuine DLF customer and not a DLF Employee; Agent or Paid Blogger... Then I would suggest you join the Association for your own good...
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