[mkh]

Originally Posted by download2live

True. I do not see many people coughing up 70+ lacs for a 2nd hand apartment in a Mantri or Sobha.

More expensive the flat is less its chances of getting sold.
Kinda of negates all the theory of price appreciating. I mean even if 45 lac apartment has become 80 lac apartment, whats the use if there is no buyer?

I don't think so, the market says different. When u ask for a rent of 20K+, people see what MORE do they get like facilities etc. Also you can't get anything in the mentioned builders for less than 75 lacs, where does the question of less than 70 come up? I am talking from first hand experience. The 1 crore+ segment is seeing growth year on year, its the 40-70 lacs where huge surplus is there

[rki2007]

Apartment culture turned out to be good all these years BUT the commercialization and money making greediness have turned almost all the builders to construct least quality apartments. I seriously believe that the life of an apartment without any hassles these days are just 5-10 years and later all sorts of problems will start.

Another day light robbery is the monthly maintenance charges collected. It is nothing less than 1.75-2.5 Rs per sqft.In many apartments the swimming pool water is also not cleaned daily or replaced in regular intervals , 3 feet depth small water tanks turning out to be swimming pools. Everyone knows that the maintenance costs they are paying is not worth but still no one questions and in reality it is not possible.

Even today it is preferable to buy a land and construct a quality structure to live for life.

[mkh]

A friend went casually to check out the latest offering from Raheja in Koramangala. The process is that they will first ask you to fill a form which asks for budget and source of funds amongst other details
Then they will select and show you the model flat if found that you can afford it. Friend knew the approx range hence put budget as 2.5 Cr.
The starting price is 2.25 Cr and apparently most are sold out! Is this hype or real? If hype- why claim most are sold? And if real- where is the money coming from and where is any slow down! The premium segment has no slow downs at all!

[rki2007]

Originally Posted by mkh

A friend went casually to check out the latest offering from Raheja in Koramangala. The process is that they will first ask you to fill a form which asks for budget and source of funds amongst other details
Then they will select and show you the model flat if found that you can afford it. Friend knew the approx range hence put budget as 2.5 Cr.
The starting price is 2.25 Cr and apparently most are sold out! Is this hype or real? If hype- why claim most are sold? And if real- where is the money coming from and where is any slow down! The premium segment has no slow downs at all!

Yes, the premium market segment is growing heavily. I came across the Century's new launch at Richmond road. Guess what's the starting price...........It is just 6 crores onwards. That allllllll!!!!!!!
(If the admin allows me, i will add ten more shocked smilies).

Also they have come up with another project nearby Intl' Airport which starts from 2.9 Crores onwards.

Is this a joke. Is it possible for any one to invest 6 crores for a flat.I seriously can't even imagine.

[condor]

Guys, sold out is a relative term. It could just mean that the set of flats that were released for sale were sold out. Till the next set is released, that is !

[mjothi]

Originally Posted by mkh

The starting price is 2.25 Cr and apparently most are sold out! Is this hype or real? If hype- why claim most are sold? And if real- where is the money coming from and where is any slow down! The premium segment has no slow downs at all!

It is definitely hype. Builders "assume" that as days go, price has to go upwards ONLY. So, the start selling couple of them while hold the rest. Once this is sold, their tactics is to use this as market price and quote more than that.

Parwath has put it correctly.

Originally Posted by condor

Guys, sold out is a relative term. It could just mean that the set of flats that were released for sale were sold out. Till the next set is released, that is !

[mkh]

Originally Posted by condor

Guys, sold out is a relative term. It could just mean that the set of flats that were released for sale were sold out. Till the next set is released, that is !

Yeah i have also seen the same game, but then why say only a few are there when you actually want to sell them? This game is played to hold onto a few, not like when you have 80% available. Either that or the builder has enough capacity to run the show for months with own funds. Whatever happens- buyers don't call the shots.

[Blue_V]

I visited the Chartered Beverly Hills near Uttaralli a few weeks back. There was one block which was completed and another block under construction. The prices of apartments under construction were as usual lesser, but shocking thing was they said everything from 4th floor to 14th floor was booked, and two sets of the ground, 1st and 2nd floor apartments were facing the car park. And after a few days i went for a second visit, i had hardly any choices left and they had risen the price (after Aashada). So I asked about the completed block (which I had ignored initially because of higher price)

But... apartments in the completed block were available, he was offering me in 2nd, 3rd,4th, 8th and these have a much much better view compared to the ones under construction.

I just couldnt understand what was happening.

Sort of similar thing happened with another builder. Hoysala builder's Samruddhi in Amruthalli. He said everything sold out, but they were adding 10th and 11th floor. The project was started in Feb this year and it was sold out in a few months.

No Idea sirji.

[hemantbsutar]

Very interesting scenario in bangalore, at one hand we see news of slow down while on the other hand i saw that TOI had an ad of some new project starting off, and see many hoardings too. I rarely track real estate as got my own place a few years back, but another colleague looking out got me intrigued to see what's happening! The next few months should be quite interesting

[BaCkSeAtDrIVeR]

Originally Posted by Blue_V

But... apartments in the completed block were available, he was offering me in 2nd, 3rd,4th, 8th and these have a much much better view compared to the ones under construction.

I just couldnt understand what was happening.

When landowners and builders - especially the medium and small ones - enter into an agreement, the land owner is not paid in cash. Instead, (usually), they are alloted X apartments. Say, from "Floor A to Floor B". It is job of the land owners to sell their apartments, and the builder sells theirs. This explains why "floor X to Y sold off, saar!!!" answers.

When the land owner does not want / decides to sell (usually after completion), the builder himself is commissioned for this, and explains sudden aailability in some apartments.

Sort of similar thing happened with another builder. Hoysala builder's Samruddhi in Amruthalli. He said everything sold out, but they were adding 10th and 11th floor. The project was started in Feb this year and it was sold out in a few months.

No Idea sirji.

Consider a land measuring 10000 units. There are ten apartments in all. 5 of them are of 1000 units "built up area" - whatever that means. 5 are 1,500 units. When you get an apartment, you are entitled to get, apart from the 1000 or 1500 unit built up area,:-

A. for a 1000 unit apartment =

[(1000x5)+(1500x5) / 10000] x 1000 interest in the land and all common facilities.

B. for a 1500 unit apartment,

[(1000x5)+(1500x5) / 10000] x 1500 interest in the land and common facilities.

The trick is to permit the builder to keep "rights to excess FSI". If the builder obtains permission to add extra floors, after entering into initial agreements, how can they maintain the proportion in rights in the land and common facilities?

They cannot.

The buyer is shor tchanged here. People hardly notice, since nobody cares to add up the "common interest" each apartment owner gets.

Beware!!!!

The above is rather tricky. Please ask for clarifications if things are not clear.

Originally Posted by hemantbsutar

Very interesting scenario in bangalore, at one hand we see news of slow down while on the other hand i saw that TOI had an ad of some new project starting off, and see many hoardings too. I rarely track real estate as got my own place a few years back, but another colleague looking out got me intrigued to see what's happening! The next few months should be quite interesting

Case 1.

When the housing sector collapsed in the US of A few months back, the people who took loans surrendered their homes and moved out to rented houses.

Will that ever happen in Inida?? We would rather fight in courts. SOme borrowers may even take the lender to court (almost all do). And at end of it all, commit suicide rather than honour the financial commitments or admit to inability to do so (file for bankruptcy).

Case 2.

Around same time the mortgage market collapsed in US of A, the real estate market in Dubai collapsed. Housing which was available at 5 to 7 AED went abegging at 1.5 to 2.5K AED. WHile there was acute scarcity when rents were high, job loss and return of expatriates ensured that even with extremely low rentals, apartments remained vacant.

Ever heard of rentals drop in India?

[hemantbsutar]

Originally Posted by BaCkSeAtDrIVeR

....

Case 1.

When the housing sector collapsed in the US of A few months back, the people who took loans surrendered their homes and moved out to rented houses.

Will that ever happen in Inida?? We would rather fight in courts. SOme borrowers may even take the lender to court (almost all do). And at end of it all, commit suicide rather than honour the financial commitments or admit to inability to do so (file for bankruptcy).

Case 2.

Around same time the mortgage market collapsed in US of A, the real estate market in Dubai collapsed. Housing which was available at 5 to 7 AED went abegging at 1.5 to 2.5K AED. WHile there was acute scarcity when rents were high, job loss and return of expatriates ensured that even with extremely low rentals, apartments remained vacant.

Ever heard of rentals drop in India?

Yes rentals did drop- i had a friend who got a independent house in a great location for 15K in 2008-09 which was the rental in 2006. The actual value was easily 18K. Rare- but happens. In fact a few places i know went for lower than prev rental value during those times. That said- it was a short time period

[nileshch]

Originally Posted by Blue_V

But... apartments in the completed block were available, he was offering me in 2nd, 3rd,4th, 8th and these have a much much better view compared to the ones under construction.

I just couldnt understand what was happening.

Sort of similar thing happened with another builder. Hoysala builder's Samruddhi in Amruthalli. He said everything sold out, but they were adding 10th and 11th floor. The project was started in Feb this year and it was sold out in a few months.

No Idea sirji.

This happens a lot with many builders. Another reason is that they first want to sell off apartments that are harder to sell. These could be backside facing, or lower floors. Once these are cleared, they open up the better ones for higher rates.

[C300]

Originally Posted by hemantbsutar

Very interesting scenario in bangalore, at one hand we see news of slow down while on the other hand i saw that TOI had an ad of some new project starting off, and see many hoardings too. I rarely track real estate as got my own place a few years back, but another colleague looking out got me intrigued to see what's happening! The next few months should be quite interesting

TOI real estate section is not a reliable source IMO. I believe they are funded by Builder lobby in every city and will always paint a rosy picture to lure poor souls. Never trust them.

[Blue_V]

"We have only one sir, would you like to come down and see the apartment?" . (Nope not interested)

Is this a common scenario for projects under construction in Bangalore ? Is there such a frenzy?

Wanted to take a look at Salarpuria project on Mysore Road, but there is that river of filth running 1/2 km from it. So I stayed away. Even the bore water might be contaminated because of it?

[amitk26]

We have only 2 left is using the demand-supply gap scenario to advantage, I did a random test with around 4-5 builders for under consutruction buildings once you say I am not interested in case you have anything on X floor get then get back to me magically the sales guy gets back next day with another flat which is cancelled by someone . May be possible that there are few buildings which are genuinely sold out but most of the time it is controlling the supply and build pressure on you to close deal.