Friday, June 12, 2009

Pune Real Estate

It's been quite long since blogging but today I am trying to reach out and see how many of you are in Pune or outside Pune but looking at purchasing the apartments here from the builder.

I have been looking for the dream home to be purchased but the kind of price quoted by builder is amazing. It is easier to buy similar home in USA in places like Boca Raton, Florida than in Pune Wakad :)

So, we found similar minded few people and created 10-15 group who can together bargain with developers. we went to places like ParkStreet, Rajeev Palace and few other places. We also got in touch with few investors to see if they are interested in getting rid of some of their assets to increase cash in their hands. Ironically, many of the investors are ready to sell the same flats that builders are selling at lower price.

Builders have no buyers and or very few buyers. There is lot of interest but very few sales. Everyone is hanging in there in hope of turn around. And to add to that, there is lot of confusion.

We sent different people at same locations and found that every sales buy provided us different rates for same flats, told us different availability numbers and when you merge all together, you figure it out that they have lot of flats available and rate is variable as much as 700 rupees /sq ft in quotation inself.

Park street, which has sold flats in recent past to rates lower than 2500 Rs/sq ft will quote you 2900 to 3200 depends on which day you go there :)
Gk Builder is quoting 2300 Rs/sql ft and will mostly sell at under 2000 Rs/sq ft if you buy from places where nothing is built yet but trust them. In this economy, not sure anyone would like that :)

What you guys are doing? In for purchase but only at lower cost? Leave a comment... and I will contact back. We are expecting 2000-2100 is a good price for places like Parkstreet. what do you guys think?

And how legal is Pune Builder's Association Cartel system? Not much if there is no political support for them.. but let's leave that aside for now.


Update: My dear friends, thanks for your encouraging comments and your wish to join the group if we are able to get the rate down. But I have no idea how to contact you unless you leave some information. Few of them left Mobile # which is good too.. but otherwise.. not sure.
You can contact me at "srinivas dot rc at gmail dot com"


Update (12/Oct/2012): It is almost 3 years since then. I would like to inform that we did buy few flats ... almost eleven at Parkstreet at that time and at the rate of 2600. We could have bought at 2500 or less if people had more interest and were not chickening out :) Ultimately, builder is professional and people who unite for small window of opportunity didn't stick. But again, we had lot of people in our group .. almost 20+ and lot of other people in the group we didn't know about. It was great experience and even though I was doing it for few of my friends ended up buying and now updating this blog from my very own house. 

33 comments:

Sansei said...

Welcome to Pune,

Some NRI r not so deliquent my friend and still continue to buy at these exhorbitant prices.

There is definitely bldr politico nexus here.

High prices r also due to apparent shortage of developable land apart fm demand- supply and bldr greed.

Ex - Opaque zoning laws - no transparency
Complicated rules - practically very difficult to get clearances etc for building houses.
No infra development - premium charging for availability of roads, water ,schools i.e basic amenities.

Inspite of large demand vs supply (excess) property rates r not heading down as much in Pune.

Sansei said...

Take example Kharadi -

No roads, no water
now EON it park is stalled/ slowed down still rates r just 10-15% down fm peak rates.

Huge inventory of unsold flats with Bldr/broker/investor.Some thousands of flats r avble to occupy.Investors have started off loading at booking prices , i have personally seen these properties.Also some more r avble at brokers at even lesser rates.

Anand said...

Srini, nice idea to form a group and collectively bargain. Let's touchbase over email...

Amol said...

same experience here srini///2000 rate is acceptable///

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Great opprtunity for investors

myfamily said...

Hi srini, I am too looking for flat in pimple saudagar, but seems builders are still quoting high. I would be interested if park street is giving below 2500. Let me know if you get any good quote.

S.Hari said...

Hi Srini,
It is indeed a good idea to make a group & try for a good deal.
But it seems easier said than done. From my experiences Ive realized that first & foremost it is quite difficult to make a group of only serious buyers. You never know how many are on the edge of the fences only to test the waters.
& then it is not easy to get a consensus on project, location, possession time frames, prices etc.
Having said all, it is woth giving a try. Some of such initiatives have worked in the past.
Count me in as well.
S.Hari
9881237045

Mandar said...

Guys,
Don't panic, wait for 6 more monts. First, let this monssoon get over, it's a usual slack period every year. Secondly, post monsoon, there are state assembly elections some time in October-Nov.
We have seen bit of a correction in real estate after loksabha elections, the worst will happen here as these are local state elections. I want lot of money to fight and win those elections this time :) I need to arrange that money some how.
Rates in outskirts of Pune can't be more than 1800 with whatever amenities the builder provide. We always forget that these amenities get shared between 500-800 flats so for a builder, it's not a big deal and not a big cost. So wait and don't run like a rat.
Aap NRI log kab sudhroge...???? You guys have made life of common middle class miserable...you have enough money to waste but they don't have that much but they need a house more than yo guy's need.

Sauchou said...

Hey Srini, nice thought.. I will be interested in Park Street any time if we can break a deal in less... than 2500..

Amarendra said...

2000 rs. is a decent rate for Pune outskirts, and a 1000 sq flat not more than ~23-24 lakhs. If flats are available under 25l slab, there will be more buyers for sure. Anything beyond that needs to be properly budgeted for by the young and aspiring IT professional.

I have been hunting for flats for the last 6 months, and yes, the rates do vary a lot -- 2000 through 2900 for one site that I visited in Wakad for ready possession.

Please also note that you have to be very sure about the papers (it is not sufficient if there is a bank approval, since private banks are in nexus with the builders too).

I recently broke an almost finalized deal with GK builders in Pimple Saudagar because they started forcing me to get a loan from HDFC or LIC only. There were not ready for a loan from SBI that I was to get. I verified every single paper for that scheme of GK through my laywer (the papers were about 500).

I am in -- if your group is going to take legal advice from a lawyer appointed by the group before finalizing on any property. I can accept a rate variation, but not if the papers are not clear (also those who think that if the title is clear the land is clear need to seriously consult a lawyer...)

-Amarendra

indianmedicare said...

It seems like a good idea to form a group and collectively bargain for a better price. If we do work on that initiative, pls count me in.

Rakesh said...

Hi Srini,

Please add me in your group also. I am Rakesh and my number is 9850040563

nailesh said...

Hi,

I am looking for 1bhk or 2bhk at resale or under-construction at kothrud area since last one year. I tried calling lot of brokers but I don't recollect any of them had called me back anytime. It's not like that I am looking to buy at Rs 100 per sq. feet. I am willing to pay at market price but I don't see brokers interested. Shayad bhagwan ne paisa jyada de diay hai

Nilesh said...

Hi,
I'm also looking for a 2BHK flat. It is really a very good idea to make a larger group and then negotiate with builder. In that way, we can bring down the price. This weekend, I visited Park Royale, still these guys are quoting the price of 2900 per sq ft.
please include me too in your list.

Thanks,
Nilesh

Prashant said...

I will also be interested in park street if they really come down for rs 2000 sq. ft.

Shalu said...

Srini,

I am not too sure how good an idea is when it only is in a blog. I have been seeing this since last three years, the rates wont come crashing down whatever happens. There are high chances of it going upside though. I would say - contact me if you are in for anything serious related to real estate in pune. I want to put something for myself - get a decent place for myself and any good idea which is worth implementaiton will be much appreciated.

Nilesh said...

Hi Srini,

If atleast 20-25 people are really serious in buying the flats, we can meet in a weekend and then together negotiate with builder. If we will be able to bring down the price to 2300 for park royale, i dont think that would be a bad deal.

Sansei said...

Hi Guys,

Im interested in the eastern corridor. Any take on that.

If u all r really interested in Group buying just read through this blog

http://punerealty.blogspot.com/2009/06/palash-2-palash-2i.html

Hope it helps.
And ya it appears to be temperory up swing, due to excess liquidity and sentiments with out any fundamtl basis.

And Mander u can add Techies (IT) and Docs to the list of NRI's who have fuelled this boom primarily with out due diligence.

Sauchou said...

Nilesh, I agree with you. Can you share your contact details since we have similar likeness.
My email address is sauchou@gmail.com

Nilesh said...

Sauchou,

My email address is nileshkm@gmail.com. are you also interested in Park Royale?? It would be really good if we find serious buyers like us,

myfamily said...

I was going to finalize something at pimple saudagar, but seeing this blog i am planning to move my decision further. I am right now not in india, if you guys can form a group and negotiate with builder at a decent project. I would also join in. You can email me at j2eecommunity@hotmail.com

Nilesh said...

Till now we have got 3 people. Its a good beginning. Lets make a list who r seriously interested..

1. Nilesh - nileshkm@gmail.com
2. Sauchou - sauchou@gmail.com
3. j2eecommunity@hotmail.com
4.

guys, add ur name by doing cut and paste business :)

Srini said...

Please make sure you leave email address by replacing @ with (at) or spammers with crawl through this page and be ready to get lot of spams.

I have gotten lot of responses directly to my email address too. I am consolidating and trying to see how to bring everything together.. so everyone can work together towards their dream home....

Sansei said...

Hi two of my friends have booked in some Dwarkadesh project in PS by GK developers.

their rate is 2700 psf.

They will give the monies today.

Anjana said...

Sansei, Why would your friends buy @ 2700 at Dwarkadish. They have sold recently @ 2500 to individual buyers. That is a high price. They may want to check again and re-negotiate.

I think people are trying to get few hundred off from quoted price and feel happy rather than trying to see market price.

If builders get customers like these with good money they will continue to sell @ higher price.

kamesh said...

Good effort Srini.


Hi All,


Created a google group for park street buyers. Join the group and tell ur friends also. We can consolidate all our ideas and get a good deal. I think the rate of park street should not be more than 2100 for under construction and 2300 for ready built house. I heard GK builders has reduced more than 600/sq.ft for group bargain (10 people). If we are more than 20, we can ask below 2000/sq.ft (ready possession). Any comments???




http://groups.google.com/group/park_street_group_pune?hl=en




Thanks

kamesh said...

Shalu,


Group bargain will be more effective. I had similar experience with DLF. We formed a group of 1000 buyers and fought with the giant and got our refund money back. If we are more than 30, I am sure we can negotiate with the builder and get a flat below 25Lacs. Serious buyers join immediately and we can do better....

Nilesh said...

Yes, I do agree with Kamesh.

Ravi Karandeekar said...

Hello! Please, read this:

1) Ashish Yadav invites you to join his group to book a flat at Rs. 2,525 per sq.ft. in Baner Balewadi!

2)

Ravi Karandeekar said...

Hello!
Please, read this:

Insignia - housing group formed by IT professionals working in Hinjewadi, Pune, finalizes their first scheme of 2 and 3 bhk flats and Town Houses

Train of Thoughts said...

Hi Srini,

I am looking for a flat and planing to finalize it till Jul 15th. It would be helpful if you can get in touch with me and include me in any group booking deals.

Thanks for your help

Regards
Priyank
priyanknaik@gmail.com

S.Hari said...

1. Nilesh - nileshkm at gmail.com
2. Sauchou - sauchou at gmail.com
3. j2eecommunity at hotmail.com
4. S.Hari - shari_9377 at yahoo.com
5. ....

Manu Vallabh Mishra said...

Hi Srini,

Can I have your numbder??

Mine is 9373260418. I will be available for the weekend in Pune. I just want to know the latest updates as I too am planning to book a flat asap.

Regards,
manu