Hi folks,

As I earlier mentioned I am going to visit Pethkar - Samrajya today. I am finalizing a 2bhk unit there. The last rate quoted was Rs. 4200. Lets see how much they reduce the price today. If anyone has more info on this project/builder then kindly share. :D
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  • Originally Posted by monds
    Jitu_Sir, how do you justify your current price???
    Is it value for money???
    Please don't quote me that - prices will be further increased to 6K and thus your money appreciates :D , talk in terms of raw maerial input cost, processing and output produc cost, a fair appraoch to justify your position.


    Dear monds,
    we had discussed this justification of price in previous post. see the RE prices are mostly driven by land cost which again are location dependant. construction cost doesnt vary much.
    we always say that we have a product with a price tag. you can get a similar product for 1/2 or may be even 1/4 cost at some other location. now its upto the buyer to make a fair choice.
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  • Originally Posted by harishkulks
    You said it all. Hence people are saying that, without the development of basic infra (by the builder or by the civic bodies run by politicos) the rates for your projects are not justified. I personally liked this project very much.But I did not buy in your project simply because I could not afford it at this exorbitant rate as well as I saw the infra not available in June 2008.Anyways...thanks for providing your thoughts...I must appreciate that. :) Harish Kulkarni...


    Dear Harish,
    thanks for the appreciation of our project. its sad to know that you cant opt for this project due to financial restriction but i wud be pleased to know what improvements you wud like to see for this project except for price correction :)
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  • Originally Posted by RAJESHP
    This proves rate hike is nothing to do with demand/supply here. Its purely outcome of PBAP meeting to hike rates to give impression that RE bulls are intact and price is on rise. I have seen many people falling to this trick, even so many on this forum itself. This worked for PBAP so far, but I dont knwo, if they know, that they cannot keep on doing this forever. Prices will struggle to rise beyond some limit( I believe it was 2008 peaks.) People I presume are buying right now, making huge downpaymet using their money from their retired Father savings/Onsite savings /black money and manage the EMI. Other than this, I really dont know how they can afford high EMI. There is very little scope for price rise from the current prices and a big problem for PBAP.

    High Margin and slow turnaround cycle, is not good(selling 2 flats in 3 months). Low margin and high turn around is better business model that works for all. For example, In one year, doing 2 projects with 25 cr profit each is better than doing only one project with 50Cr profit.


    So you acknowledge price are artificial based on PBAP meeting and not demand/supply.


    Originally Posted by puser
    Whenever I hear such prices (4500psft,5200psft etc), I feel intended buyers of these builders might be of some social/economical category different from mine although I am settled IT professional now.

    I can not imagine to spend more than 35 lacs(total) on 2 BHK on outskirts. India is huge country with diverse population; may be there are people who can afford to buy at such exorbitant rate (even though VFM is not that much).

    May be I am wrong;because i am not expert in RE but this as a common man comes to my mind when I read such prices and feel that even after getting to work in most desired industry (and at pay scale probably higher than average), decent (forget luxurious,premium, and couture homes) flat is unaffordable(may be there are some other occupations which give you money huge enough to buy 1 crore's 2BHK apartment which I did not know and do not know yet)

    I think builders should start referring Pune as Mumbai Annexe now; this might had extra digits in their rates.


    Dear Rajes, puser
    I wud request you to visit the site once and see as to the location, quality and price as compared to projects in nearby vicinity. still if you feel its unreasonable then i will agree to your judgement.
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  • Originally Posted by Jitu_Sir
    Dear Rajes, puser
    I wud request you to visit the site once and see as to the location, quality and price as compared to projects in nearby vicinity. still if you feel its unreasonable then i will agree to your judgement.


    Visit and see how good we are ...
    See our location
    See the Infra
    See our this, See our that ....

    Same old story of n-point justification for high prices that would go on and on for most of the Pune RE players (aka PBAP) ...
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  • Samrajya

    Jitu, One thing I can not help but wonder,

    If u hv only 4 flats left to sell, why magicbrick shows 19 flat offers ? Last one posted in Nov09 and latest one posted in Jan10 ?

    ]http://www.magicbricks.com/property/search/p/pro/p~p!oid~847843!/__-property.html;jsessionid=8A04564C49025826E7E6AB9D7DE60B9F.node6

    Buyers know these things happening. If one has 70 lakhs pay capacity, he would not buy just a small 2 BHK but will go for a big rowhouse ?

    Buyers know these things happening. If one has 70 lakhs pay capacity, he would not buy just a small 2 BHK but will go for a big rowhouse ?
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  • Originally Posted by Jitu_Sir
    Dear Rajes, puser
    Originally Posted by Jitu_Sir

    I wud request you to visit the site once and see as to the location, quality and price as compared to projects in nearby vicinity. still if you feel its unreasonable then i will agree to your judgement.


    Somehow I cannot buy into the theory of check rates at other sites. Let me try to explain with some example of what I have observed.

    What I have observed is that Builders usually take 3-4 years to complete a project and during this time the Builders keep on increasing the rates as and when some apartments keep on getting sold. E.g. 12 flats remaining the rate at that time was Rs. 4500 psf, 4 flats remaining the rate is increased to Rs. 4800. (from abeerbagul’s post)

    During this duration as a new Builder starts another project the pricing is just 200-300 psf less with all flats remaining to be sold.. Reason the project next door is 4800 psf so mine is 4500 psf. Then this Builders starts to increase rates slowly and surely as time passes. E.g. Now when this builder after some/many months has only 12 flats remaining his rate has increased to much higher lets say 6200 psf.

    Now when a new project is launched the base price is fixed to this rate i.e. 6000-6200 psf… and the story continues.

    Above, I have considered well space out (in terms of time) projects. But usually the projects are not as spaced out and projects are launched by different builders usually with no connection to each other. So one Builder raising the rates because he has only 4 flats to sell make all others also raise rates even though they have a huge pile of flats to sell and might be in a different stage of construction. (As RajeshP said this might be due to a PBAP meeting). So overall taking all projects into consideration the supply is still a lot and not depleted. Hence although Demand/Supply theory seems very logical but I don’t think it is used here to price flats. Hence what RajeshP mentions is not out of context.

    In short, if one works in a Cartel and fixes prices in a cartel then comparing prices is hardly of any use.

    Pardon me for the long post and maybe improper grammar at some places as I have quickly jotted this down.

    VK
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  • Originally Posted by veeemkay


    Somehow I cannot buy into the theory of check rates at other sites. Let me try to explain with some example of what I have observed.

    What I have observed is that Builders usually take 3-4 years to complete a project and during this time the Builders keep on increasing the rates as and when some apartments keep on getting sold. E.g. 12 flats remaining the rate at that time was Rs. 4500 psf, 4 flats remaining the rate is increased to Rs. 4800. (from abeerbagul’s post)

    During this duration as a new Builder starts another project the pricing is just 200-300 psf less with all flats remaining to be sold.. Reason the project next door is 4800 psf so mine is 4500 psf. Then this Builders starts to increase rates slowly and surely as time passes. E.g. Now when this builder after some/many months has only 12 flats remaining his rate has increased to much higher lets say 6200 psf.

    Now when a new project is launched the base price is fixed to this rate i.e. 6000-6200 psf… and the story continues.

    Above, I have considered well space out (in terms of time) projects. But usually the projects are not as spaced out and projects are launched by different builders usually with no connection to each other. So one Builder raising the rates because he has only 4 flats to sell make all others also raise rates even though they have a huge pile of flats to sell and might be in a different stage of construction. (As RajeshP said this might be due to a PBAP meeting). So overall taking all projects into consideration the supply is still a lot and not depleted. Hence although Demand/Supply theory seems very logical but I don’t think it is used here to price flats. Hence what RajeshP mentions is not out of context.

    In short, if one works in a Cartel and fixes prices in a cartel then comparing prices is hardly of any use.

    Pardon me for the long post and maybe improper grammar at some places as I have quickly jotted this down.

    VK


    Magic brick shows 19 flats waiting for buyers in last 2 months in Samrajya to be sold. Add builders 4 flats to be sold.

    Thats real story.

    http://www.magicbricks.com/property/search/p/pro/p~p!oid~847843!/__-property.html
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  • Originally Posted by Jitu_Sir
    in that case any profit making business should fall in above category. just a question out of curiosity....many of us change jobs to get higher scales, packages, incentives etc etc...does this too fall same category ?

    There is a difference Jitu:- Type of work.

    In most cases, the work increases/is of high responsibilty. Eg. From becoming a director of normal co. to director of Fortune co. or from director to ED etc.

    In case of Pune RE, I see that you don't book a flat at high rate & get a bungalow at the time of possession:D.
    Btw, if prices can fall drastically in India, why not Pune? The reason is cartel:- PBAP, funded by corrupt politicos.

    That's the difference.
    Originally Posted by Jitu_Sir
    see the RE prices are mostly driven by land cost which again are location dependand. construction cost doesnt vary much

    No where I have seen land prices going up in the same ratio as that of flat. Hence, the theory is false.
    Originally Posted by RAJESHP
    High Margin and slow turnaround cycle, is not good(selling 2 flats in 3 months). Low margin and high turn around is better business model that works for all. For example, In one year, doing 2 projects with 25 cr profit each is better than doing only one project with 50Cr profit.

    Agree 100%:). Rotation of money has to be there for sustainable business.
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  • improvements?

    Jitu sir,

    Pardon me for being a cynic....but the biggest improvement that you can make in Samrajya is to reduce the no of flats from the complete projects to half.

    I can foresee all the traffic jams that will happen in that area/ lanes when all those who have booked a flat in the humongous construction come to live there.

    If you dont see my point....do visit HInjewadi in the evenings when the companies are let off ....

    I dont see a point in going vertical when proper infra is not in place and why just blame the govt ?? its also the builders who, with their short foresight construct huge buildings in small bye-lanes.
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  • Originally Posted by thatsnick001
    I dont see a point in going vertical when proper infra is not in place and why just blame the govt ?? its also the builders who, with their short foresight construct huge buildings in small bye-lanes.

    Bang on target man. I had mentioned in my early posts that such a project is not going to viable. There should have been multiple phases based on infra support. Infact some social activists had asked the govt. to disallow high rise where infra is not sufficient to cater to current population. The issue further gained stem when buildings of 30 floors were sanctioned. Some political chaps like Kallu wanted more FSI for builders having projects near BRT reason:- more people will use BRT:D. This kallu has vested interests in PMPML & RE as well.

    Anyways, I have seen many projects coming up at places where hardly 1 car manages to go properly:(.

    These builders send some khokas & get the sanctioning done. As said, builders are greedy not only in terms of profits but even infra & nature too. Do builders think long term? They don't even think medium term.

    Their condition has become more of drug addicts where they can't let go their greed & I have said this to the builders I know on their face & both of us laugh :D (hey Jitu this is not personal).
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  • Originally Posted by thatsnick001
    Jitu sir,

    Pardon me for being a cynic....but the biggest improvement that you can make in Samrajya is to reduce the no of flats from the complete projects to half.

    I can foresee all the traffic jams that will happen in that area/ lanes when all those who have booked a flat in the humongous construction come to live there.

    If you dont see my point....do visit HInjewadi in the evenings when the companies are let off ....

    I dont see a point in going vertical when proper infra is not in place and why just blame the govt ?? its also the builders who, with their short foresight construct huge buildings in small bye-lanes.


    Dear thatsnick,
    the approach road infront of samrajya is 80ft DP which is in existance till Kanchanban Society (just few meters from samrajya) from main paud road. this width is more than sufficient to handle even more number of flats in near future.
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  • Originally Posted by realacres
    Bang on target man. I had mentioned in my early posts that such a project is not going to viable. There should have been multiple phases based on infra support. Infact some social activists had asked the govt. to disallow high rise where infra is not sufficient to cater to current population. The issue further gained stem when buildings of 30 floors were sanctioned. Some political chaps like Kallu wanted more FSI for builders having projects near BRT reason:- more people will use BRT:D. This kallu has vested interests in PMPML & RE as well.

    Anyways, I have seen many projects coming up at places where hardly 1 car manages to go properly:(.

    These builders send some khokas & get the sanctioning done. As said, builders are greedy not only in terms of profits but even infra & nature too. Do builders think long term? They don't even think medium term.

    Their condition has become more of drug addicts where they can't let go their greed & I have said this to the builders I know on their face & both of us laugh :D (hey Jitu this is not personal).


    Dear realacres,
    the moral of the story is each of us have different views to look at RE. you are right at your end and me at my end.
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  • Originally Posted by realacres
    Bang on target man. I had mentioned in my early posts that such a project is not going to viable. There should have been multiple phases based on infra support. Infact some social activists had asked the govt. to disallow high rise where infra is not sufficient to cater to current population. The issue further gained stem when buildings of 30 floors were sanctioned. Some political chaps like Kallu wanted more FSI for builders having projects near BRT reason:- more people will use BRT:D. This kallu has vested interests in PMPML & RE as well.

    .



    Trying to understand who is this Kallu ?
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  • Originally Posted by puser
    Trying to understand who is this Kallu ?


    Is he the one who did not use "Fair and Lovely" fairness cream?:D:D:D
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  • Originally Posted by RAJESHP
    Is he the one who did not use "Fair and Lovely" fairness cream?:D:D:D


    By Kallu Real mean your Dear MP from Pune....

    And I dont know how many of us over here know our MP:)
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