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interesting article on RE margins for builders

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interesting article on RE margins for builders

Last updated: June 14 2009
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  • interesting article on RE margins for builders

    1300 psf is the max cost in Pune for the builder. See this recent article.

    ]http://www.moneycontrol.com/india/news/business/ds-kulkarni-developers-land-bank-at-rs-600cr/400649[/URL]
  • #2

    #2

    Re : interesting article on RE margins for builders

    He has left unsaid the unsaid cost :

    clearance cost euphemism of bribery cost.

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    • #3

      #3

      Re : interesting article on RE margins for builders

      Interesting tidbit

      Here is an interesting obs fm an experienced hand.


      I think it's time for people like Rohit Gera and his tribe to do some soul searching themselves instead of quoting stupid prices for their products.

      And the same goes for builders from Mumbai, Delhi, Kolkata, Bangalore and all the other places.

      I am from the building / construction industry, and over a period of 12 years I have done various projects such as Shopping Malls, High Rise Towers, Commercial Complexes, Dams, Bridges, Flyovers, etc., etc.

      I have seen how much it costs to build a residential tower of 50 floors with 8 flats per floor, and how much the builder asks, a whopping 300%-600% over the building / construction cost.

      So now Mr. Gera please think twice before commenting. It is your greed which has got you and your tribe in this mess, and not the buyers.

      And you deserve this, so just face it fair and square and behave in a responsible manner or quit the business.

      Imagine a 1000 sq. ft. (Super built-up) property in Mumbai or Delhi costing you an average of Rs 50,00,000.00 ($100,000.00). Whereas for $100,000.00/- you could buy beautiful property in CA, USA with more amenities and better facilities.

      So why should customer in India buy a sub-standard over-priced product when he / she can have an excellent property in USA, UK, Australia or NZ.

      I would say ask every information from the builder, when you are buying the property. Quote 60% - 70% less than what the builder is saying. Start your negotiations from that figure.

      The best option, buy the flat bare from all the niceties at 70% less price from the builder. Do all the interiors yourself, including the concealed wiring, the bathrooms, the kitchen, and the whole works. The best civil interiors would cost you no more than Rs 1.00 lakh. You can trust me on that.

      Hire a civil contractor, you can negotiate a better bargain with them, since they are more in number than the builders and get good rate too

      Its fm another pune blog.

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      • #4

        #4

        Re : interesting article on RE margins for builders

        I don't think we can bargain with the builder that don't do anything in my flat, I'll do the whole thing myself. Just give me four bricked walls and that's it.

        I seriously doubt this. Has anyone bargained on amenities?? Bargaining on price is usual, but bargaining of amenities, I have never heard of it.

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        • #5

          #5

          Re : interesting article on RE margins for builders

          Lots of flats r vacant with the four walls - bricks or plastered or with all bells and whistles.

          With recession, the bldr might negotiate depending on his position. Innovation is the name of the game and if it works 4 u & offloads some excess flats fm bldr the better.

          Do tell me abt successful deal, i will also try the same.

          cheers.

          Comment

          • #6

            #6

            Re : interesting article on RE margins for builders

            the smaller builders would be okay with this.. i doubt if it will work on the likes on unitech/dlf etc!

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            • #7

              #7

              Re : interesting article on RE margins for builders

              One Kumar bldr project avble on Paud junction with similar concept.

              Rates r quoted 4.5k psf. Minimum build option starts at 400 psf as per bldr man.

              Such options r common in NCR area
              Last edited by Sansei; June 14 2009, 05:37 AM. Reason: spell

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