Hello everyone! I dont know how many remeber me, but I am Phoebus a civil engineering student in my last year of engineering. As many of you must have read about it, there was an article about the Special Township Projects someday back( or was it yesterday?). These projects are minimum 100 acres. As stated on the forum the recent projects have flopped pretty horrificaly. My question is, as buyers, what would you want in these projects? WHat are your opinions about these gated communities? Are they sustainable? If no, then how can that be done. Overall, do you think the ideas of township is a failed model in Pune atleast?
Read more
Reply
17 Replies
Sort by :Filter by :
  • Is this your final year project??? :)
    CommentQuote
  • You don't need a new thread here as there are lot of discussions going on in other threads which address your doubts and questions. Instead of making people provide you ready made answers, why don't you check those threads and get your answers?
    CommentQuote
  • @investwest, I am already going through all the threads :). I just made a new one specially dedicated to get more precise and focused answers.
    CommentQuote
  • @RRRAO, no no, nothing to do with my final year project. This is because of the fact that I want to be a developer someday, so just want to learn the views of my fellow members!
    CommentQuote
  • to be a developer, you should buy a white scorpio first. That's a must to start in this industry in Pune.
    CommentQuote
  • Originally Posted by investwest
    to be a developer, you should buy a white scorpio first. That's a must to start in this industry in Pune.

    @Investment: he is eyeing townships !! White Scorpio is for small land parcels.. For him putting a CLOCK and photo of DADA should be priority else nothing moves !!!
    CommentQuote
  • Township projects(100 acres+) have largely flopped due to Developers Greed, Pride, Gluttony, Sloth, Wrath, Lust and Envy.
    1.GREED: They buy large parcel of land with Locational advantage at very cheap rates (sometimes pay only 15% of market value for JV), of course there is a development cost of bringing roads, electricity and water (managed by nexus with politicians), there is very little input in improving quality of construction (Magarpattas construction is discussed on this forum), layouts of units lack comfort-ability (dinning is squeezed in passages), aesthetics are limited to Entrance, Club House, Elevations(sometimes), Sales Office and Sample Flats ( Pride spent 12 crores on just these for launch of Soft City, Life Republics twin bunglows look like govt. quarters). All is done to maximize the profits, no advantage is passed to Buyers. Life Republic, Blue Ridge, Megapolis, Kul Echolac, Soft City and DSK Dreamcity have acquistion cost of land near Rs 300 per sqft or less look at the launch rates.
    2.Pride: More again is spent on classy Advt., false Pride is built around the project with promise of infrastructure like Bridges, Roads,Markets, Bus depots, Airport, Metro etc, high headedness as if their township is an IKON , some Developers even covet felicitations and awards.
    3.Gluttony: Biting more than you can chew or digest, Look at the portfolio of ongoing projects of these Developers and their experience in managing these simultaneously and amount of Land Parcels they Horde.
    4.Sloth: After initial Onset, Pre Pre Launch, Pre Launch and Launch when sufficient bookings are received to put things into motion, pace slows down because with time rates go up resulting in higher realization, It dosent matter if you are handing over Possesion with construction still going on in other phases (buyer who bought in Phase 1 may have live for ten years before final phase gets over)and promised infra is not in place, the Developers are indifferent to buyers inconvenience.
    5.Wrath: Arrogance is Bred into Staff of the Developers, they lend deaf ear to your problems,you delay the payments they never miss the opportunity to collect interest as mentioned in the agreements, I have to still come across a Developer who paid interests for delay of his project.
    6.Lust: Lust for Power, Money, Desires.... where ever there is opportunity in the project it cant be missed.
    7.Envy: Bhalla uski shirt meri shirt se jyade safed kaise, Neighbours envy Developers Pride, the project dosent have to be enviable it has to be liveable.
    Summary: Sustenance, what is that?( Solar power, water harvesting, SWG treatment.... is done to gobble the incentives). If more attention was paid to layouts, quality of construction, buyers convenience, passing the price advantage to buyers, these Township would have been different story. But that is not what Developers want: The Projects may have flopped but the Developers have been a great Success.
    P.S:
    I drive a white scorpio too.
    CommentQuote
  • Originally Posted by Phoebus
    Hello everyone! I dont know how many remeber me, but I am Phoebus a civil engineering student in my last year of engineering. As many of you must have read about it, there was an article about the Special Township Projects someday back( or was it yesterday?). These projects are minimum 100 acres. As stated on the forum the recent projects have flopped pretty horrificaly. My question is, as buyers, what would you want in these projects? WHat are your opinions about these gated communities? Are they sustainable? If no, then how can that be done. Overall, do you think the ideas of township is a failed model in Pune atleast?


    Can you please tell me which township projects have flopped?

    I understand that townships are a new concept in India but can be reliable and efficient than living in certain parts of the city. Townships are not for everyone & true that they are hard sell. But don't measure success based on what is mentioned in this forums. If you are serious about your work, you should be talking to these townships, collecting data & then make a decision. You need to look at them from a builder perspective.

    Since you are planning to become a builder, you also need to measure success in terms of your profession. Is occupancy more important to you or selling more units is more important? E.g. Considering that Blue Ridge is 50% complete, the occupancy rate is also 50% and the sale % is above 75%. Yes, there are more investors at BR but that is good for the builder. But on this forum, you will notice that people think BR is a ghost town because many flats are vacant.

    Yes, as a builder, it is important to get a buyer's perspective but it is equally important to understand what can sell because only then you will have buyers. E.g. if you look at BR, Paranjape is wooing the working class, folks who work in IT park & also families who have kids. That is why he planned SEZ first & a school. Eventually, as the project progresses, his ROI will show up. He has recovered almost all his investment after selling SEZ. This not only makes his company, Flagship Infrastructure, financially strong but also ensures that he builds his franchise over the period as the township progresses.

    If you ask me, even though all the townships in Hinjewadi are competing against each other, their future also depends on each other. If one township fails or flops, it will not be good for the other townships. The sales people will not commit to that but if you talk to Mr. Paranjape or Mr. Bhosale or Mr. Kolte Patil or Mr. Hafiz Contractor, then they will agree.

    You should also read the Maharashtra Township Act Requirements document. Building a township is not a joke either. Now, it is a different story that getting sanctions for these established builders is easy because of their political connections, but planning and building after all that also has lot of risks. That is something that you need to understand and highlight.

    Anyways, I would seriously advise you to approach someone higher in the organization at one of the township builder's offices and get some facts. You just need to clearly mention that you are a student and working on a case study. Chances are high that they will reject you but if they agree, you should be willing to sign a non-disclosure agreement that you will not release any information. Who knows, your interest in their project may land you with a job where you will learn more & then move up to become a better builder.

    On behalf of IREF, we all sincerely hope that you accomplish your dreams and become a great builder, better than today's builders. Who knows, one of your projects might benefit my kids.

    Good luck !
    CommentQuote
  • @anil and @pnq, thanks alot for the indepth analysis and suggestions. Going through the forums still, and it is very interesting. And yes, I assure you, I will become a good builder, providing world class homes!
    CommentQuote
  • lol.. you got to first step of it.. "World Class Homes".. spanish? japanese? which style of homes you'll provide to INDIANS?
    CommentQuote
  • I do not think that Township is a failed concept in Pune.
    Infact they are the need of the hour and and are encouraged by the government.

    Recycling waste, garbage collection, water harvesting, sewage treatment are well taken care of in township projects which can take burden off the corporation. Corporation is anyways inefficient in this field.

    Self sustained township model is still a far fetched dream but still these township projects have lot to offer.

    The drawback is that these townships are planned in far flung areas and still exorbitantly priced.
    With high prices and large inventory which comes with these townships make the sales slow and hence looks failed concept.

    If pricing is correct they can sell like hot cakes as they promise better lifestyle for family
    CommentQuote
  • @pnq2012 Eventually all projects will be sold out (world population target for 2020 is 9 billion and we arent going to Moon or Mars till then...), sales is not a single parameter of success or failure, but shameless manipulation and fine tuning to achieve record profits on behest of inconvenience to Buyers and not delivering what is promised is a failure.

    @Kingmanish Large tracts of land are available only on outskirts of city, center of city remains fragmented, is horizontal growth more sustainable than vertical growth? what happens we run out of fossil fuels or they become exorbitant(with renewable fuels horizon still not in sight)? how would you commute 30 kms to city center ( I am teaching Horse riding to my children) ? 100+acre can be bought by whom ( go deeper into ownership and investors of these developers)? why not do the zoning in surrounding areas on priority? FSI concept is the biggest scam, Hyderabad has been freed from clutches of FSI and see the feasibility.
    CommentQuote
  • Originally Posted by Phoebus
    @anil and @pnq, thanks alot for the indepth analysis and suggestions. Going through the forums still, and it is very interesting. And yes, I assure you, I will become a good builder, providing world class homes!


    Wish you all the best.
    CommentQuote
  • Originally Posted by anildc
    @pnq2012 Eventually all projects will be sold out (world population target for 2020 is 9 billion and we arent going to Moon or Mars till then...), sales is not a single parameter of success or failure, but shameless manipulation and fine tuning to achieve record profits on behest of inconvenience to Buyers and not delivering what is promised is a failure.



    Agree 100% with you but that is a separate discussion altogether. Sadly, corruption, lack of professionalism and lack of integrity is rooted in our culture & affects most of our daily lives, not just the real estate.

    Personally, based on my experience, I get better lifestyle in a township than in the city. Both PMC and PCMC cannot cope up with the increasing population and cannot offer citizens the basic necessities.
    CommentQuote
  • Originally Posted by Phoebus
    @RRRAO, no no, nothing to do with my final year project. This is because of the fact that I want to be a developer someday, so just want to learn the views of my fellow members!

    To be a developer, you don't need to know about township. What you need is to hire services of clock party & then; Eureka, you can have township even inside Pashan lake. :D
    Even Shaniwarwada can be developed using balance FSI. :D

    Btw, coming back to topic on serious note, township is nothing but a sham.
    No matter what builders' say, they depend on local Govt for following :-

    > Approach road,
    > Water (yes, Nanded City has taken water line directly from Khadakvasla which should be illegal but who bothers when the clock party is busy in 70,000 Cr irrigation scam :bab (45): ),
    > Electricity, again on MSEDCL.

    So entire infra is based on local govt. Now what is there for builder is to only maintain internal premises by charging a bomb to the buyers. No what's special in this ?? Don't builders who build project of 100-200 flats maintain it till society is formed ?

    And if townships would have been indeed wonderful, why is Amanora only 30% done while KUL is scrapping 1 township out of 2 they have ?? Think man.....

    What we need today is planned 'Satellite Smart Cities' & not private townships here & there, most good for only aadivasis & tarzans. ;)
    CommentQuote