Nice homes for just Rs. 1500 per sq ft! Is everything okay?
Something kept us awake into the wee hours of Monday. Considering that Mondays mornings at the office are important, this must have been a pretty intense thought. Let us share this with you so we can have some of you ponder over it as well.
What we saw:
Near the Orissa Engineering College in Bhubaneswar, there are a few projects coming up. These are residential apartments in a mid sized housing complex/ society of about 200 apartments. They come with nice finishes, a contemporary architecture and exterior elevation, albeit in the brochure right now with a disclaimer. There is a decent sized swimming pool, gymnasium, community hall and the works too. In the heart of Bhubaneswar, something like that would be selling at 4000 bucks a sq ft minimum. Of course there is that significant land cost difference. We understand. But how does this project sell at 1500 rupees per sq ft? Plus, there is room for some negotiation left as we gathered from the project office when we went there posing as buyers last week!
Is the builder thinking that he could sell cheap and gather some momentum immediately, get some cash in the bank to start work, which is a zero at the site now?
Is the builder working at total finishing costs of about 1200 bucks? Considering that he has not yet started construction! Is there some cost calculation that no one knows but this builder does?
Or, is it, just another sign of a bigger sham that powers this project and many other ventures of that group?
We don't know. Sadly, there are 40 people who have already bought into the project, some at ridiculous prices of 1200 bucks a sq ft.
Honestly, for a greater cause and for the welfare of the whole industry in these troubled times, we hope our fears are baseless and all would be well. But repeated debates and discussion with our colleagues, other builders and consultants tell us that all is not well. Especially when you see that this builder has not yet delivered a single project!
May God be with the builder and his buyers. There are hundreds of such promises going around. Builders who have launched 50 crores worth of real estate space do not have 5 lacs to pay the consultant or the ad agency. Even that money needs to be collected during the Indian 'soft launch'.
All is not well. And we, just can't sleep. Well, it is one of those days. Wish we were as tired and carefree as some pilots of Air India. Darn!
Related Articles:
1. What would your construction cost for a residential project be in India? Find out!
2. The world's 10 most expensive real estate markets.
3. What is your salary hike in 2013 going to be? Here is an industry wise list.
What we saw:
Near the Orissa Engineering College in Bhubaneswar, there are a few projects coming up. These are residential apartments in a mid sized housing complex/ society of about 200 apartments. They come with nice finishes, a contemporary architecture and exterior elevation, albeit in the brochure right now with a disclaimer. There is a decent sized swimming pool, gymnasium, community hall and the works too. In the heart of Bhubaneswar, something like that would be selling at 4000 bucks a sq ft minimum. Of course there is that significant land cost difference. We understand. But how does this project sell at 1500 rupees per sq ft? Plus, there is room for some negotiation left as we gathered from the project office when we went there posing as buyers last week!
Is the builder thinking that he could sell cheap and gather some momentum immediately, get some cash in the bank to start work, which is a zero at the site now?
Is the builder working at total finishing costs of about 1200 bucks? Considering that he has not yet started construction! Is there some cost calculation that no one knows but this builder does?
Or, is it, just another sign of a bigger sham that powers this project and many other ventures of that group?
We don't know. Sadly, there are 40 people who have already bought into the project, some at ridiculous prices of 1200 bucks a sq ft.
Honestly, for a greater cause and for the welfare of the whole industry in these troubled times, we hope our fears are baseless and all would be well. But repeated debates and discussion with our colleagues, other builders and consultants tell us that all is not well. Especially when you see that this builder has not yet delivered a single project!
May God be with the builder and his buyers. There are hundreds of such promises going around. Builders who have launched 50 crores worth of real estate space do not have 5 lacs to pay the consultant or the ad agency. Even that money needs to be collected during the Indian 'soft launch'.
All is not well. And we, just can't sleep. Well, it is one of those days. Wish we were as tired and carefree as some pilots of Air India. Darn!
Related Articles:
1. What would your construction cost for a residential project be in India? Find out!
2. The world's 10 most expensive real estate markets.
3. What is your salary hike in 2013 going to be? Here is an industry wise list.
Same in gurgaon dude. Its a new scheme where flats are allotted by lottery and it is said that these flats are HUDA approved. They go for 1800 per sq ft. Dont know what it is
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