Saturday, February 23, 2008

Review of property rate of Queenstown, Mindspace Realty's township of 3bhk and 3&1/2bhk luxurious flats at Chinchwad Railway Station

Reasonable rate

When i asked you to guess, even I did not know the property rate of Queenstown.

I know the real estate rates in almost all locations of Pune. If you are reading my Pune real estate market news blog regularly, you know Amit's Bloomfield at Ambegaon on new Mumbai Bangalore bypass is asking Rs.3,800 and Rs.4,000 per sq.ft. Property rate of Amannora Township on Hadapsar Kharadi bypass is Rs.3,500 and Rs.4,000. At Balewadi and Bavdhan Koolhomes's property rate is Rs.4,000. Midori Towers of Pimple Nilakh, was launched at special rate of Rs.3,000 per sq.ft.

But all these projects were in undeveloped areas. In last couple of years, not a single township was launched in the developed area of Pune and Pimpri Chinchwad. Why? How can you have a township in the city if the big plots are not available?

Where as, Queenstown is a township of more than 25 acres and Queenstown is in the heart of Chinchwad. Now, tell me, how can i guess the property rate, when i know how impossible it is to find a plot of that size and if you did find, how expensive it would be!

When i visited the well done sample flat, everybody received and explained to me the project in detail but nobody talked about the property rate till i sat with the real estate salesman.

When salesman said property rate is Rs.3,200 per sq.ft. i did not believe what i was hearing. So i asked him again and again. Yes, up to 5th floor, the property rate is only Rs.3,200 per sq.ft. Floor rise is conventional Rs.25 per floor. For 10th and 11th floor floor rise is 75 Rs. and for 12th floor Rs.100 because of the higher construction cost. Including all floor rises, property rate of my 12th floor flat is Rs.3,800 per sq.ft.

Value for money:

After the multimedia presentation and visit to the sample flat, if you ask me, it is not at all difficult to feel that you are getting your money's worth. Even for you, who has not seen the multimedia presentation and not visited the sample flat, it is easy to find the rates and other charges, standard and normal. Because, they are at par with the projects on the out skirts. For example -
Club and infrastructure charges of Queenstown are Rs.1,54,000.
Corpus fund is Rs.1,25,000.
MSEB charges are Rs.90,000.
Oh! you have to pay Rs.12,500 for the piped gas and Rs.10,000 as legal charges.

What i do not like is car parking charges - Rs.1,25,000. No amount is OK. But the amount is for the open car parking! I find it difficult to believe that covered car parking is not available on the next day of the launch of the project. True, in my tower most of the flats are already gone. I expect, good projects should have 2 car parkings per flat. Shouldn't they?

What is your take on property rates in the Pune real estate market?

Some of us were hoping for the slow down in Pune real estate market. Most of us were sure that real estate prices would not rise anymore. We all wanted property rates to come down. 'Is this rate justified at that location?' was the most frequently asked question. But did you ever think that a luxurious township of 658 flats would be launched in the heart of the city at a reasonable rate? Do you think you are getting value for your money in Pune real estate market? Please, express your views in the comments!

6 comments:

  1. Looks like very reasonable rate with respect to Pune. Btw, how close Chinchwad is to key hospitals / FC /MG /JM roads?

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  2. thanks for asking. i will write a post on this. From MG, JM, FC roads distance is between 12 to 15 klms. But traveling time is short because of the old Mumbai - Pune highway. Hospitals are at the corner. Adity Birla 3 klms.

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  3. dear ravi i have read your blogs and value your feedback. i have liked the website of dwarka in chakan talegoan and they quote for 2 BHK 2150/sp ftt can i know if this is the current rate and if it is okay to go ahead with this project thanks

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  4. Ravi are you a hardcore real estate agent, coz no matter what rates quoted by builders on you site ,you tend to agree that the prices are fair.

    Do you seriously think that everyone can afford rates like these.

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  5. Hello Ashvin! Thanks for the comment and complement. But i am not an agent or a broker. I do not blog to sell any project and i do not earn any commission or any kind of a remuneration for writing about any project. I talk about real estate rates because there are no rates in the ads. But property rates is the first thing about the project everybody wants to know. When i talk about the rates, i compare them with the current rates in that league. I do not say this is the right price or affordable rate. In free market, everyone is free to price his product. At the same time buyer has the power to negotiate or not to buy. Real estate prices went up because there were buyers who were ready to pay that rate. Prices will come down if people will stop paying hiked rates. Now about affording - personally, i feel sad for throwing out the typical first time buyer, 2/3 year at a job - planning to get married - had couple of lakhs in FDs - can pay rs. 15000 emi if he manages his expenses well - comes with his friends or parents and books a flat! These people created the boom. But now they are not in the market. I feel sorry and sad. But i do not think this is unfair. Because in the dynamic market it happens. There is nothing like fair or unfair. There is only demand and supply.

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  6. Hi Ravi,
    with the current share market trend which is going down to 13-14K, Slowdown in the IT sector (people r being FIRED on every Friday- due to slowdown in US) do u still belive that property rates in Pune will Not go Down.

    The same flat for which I used to Pay 3000 rent per month, I am now paying 8 k which is just due to the IT sector Boom in Pune, Now IT is moving down like hell then in this situation what u will suggest about future of real estate rates in Pune.

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