Paranjape Schemes wants to know your "rate expectation"!Can you help Rajesh, who wants to book a 3 bhk flat in Blue Ridge? Please!
I could have send and archive reply to his e mail like i usually do but i was impressed with the fact that Blue Ridge is asking the property buyer about his expectations!
If you had read my post "Do you fear your builder?", you can understand why i was so much impressed.
Read what Rajesh writes:
Actually, last year, I had a very strong desire to buy a residential property in Pune and was interested in the Blue Ridge Project. I made a short visit to Pune last June and visited their site and was quite satisfied by their construction quality. I was actually planing to book a 3BHK property in the phase 2 of their project which came up during Diwali time but found their asking price too expensive. Now I have received a mail from the builder asking my interest and my rate expectation. Could you advise what would be the fair value in Blue Ridge Hinjewadi? The reason for my interest in Blue Ridge is (1) Paranjpe Builders is reputed builder (2) I work in IT and may settle in Pune in the next 3-4 years.
What would be the fair value of Blue Ridge Hinjewadi?
How i look at property rates?For me it is not easy to answer this. Because I am not a critic or an activist fighting against the greedy builder lobby. I am real estate salesman who blogs to help the property buyers to book a flat in Pune real estate market and i announce it before i open my mouth.
I always try for the win win solutions. Because, the basic law of the real estate is to sell at a maximum possible rate. (Even you try to get a maximum rate when you sell your old flat. Right?) At the same time, rate increase should motivate the property buyer to book!
Remember the most frequently used sentences to motivate the buyer to book immediately? "Rates can go up any moment!" "My boss can call anytime!" "This is a current rate. I don't know about tomorrow!"
Why Blue Ridge was the best buy?But in last couple of years, rate increase has gone out of control. Instead of motivating, property rates started discouraging property buyers from booking.
Property rates in Pune reached to such a level where very few buyers can really afford.
Plus, if you read the comments on my old blogs, you will find that the property buyers, who can afford, were totally unhappy with the infrastructure development of Baner - Balewadi, Wakad, Rahatani and Pimple Saudagar.
Add to it, the poorly planned projects by the builders with no or bad track record who launched the projects before completing the legal and corporation formalities.
Exactly, at this point, Paranjape Schemes launched Blue Ridge, an integrated township of 138 acres which offered international life style - better infrastructure and long list of amenities - close to your work place in the 1st phase of Hinjewadi at the property rate of Rs. 3,200 and rest is the history...1 flat booked at every 84 seconds!
This could happen because at that point property rate in Aundh annex area was around Rs. 2,600 per sq.ft. where as at Baner it was around Rs. 3,000. Means though being located at an unusual but not unfamiliar location of Hinjewadi, Blue Ridge's pricing was competitive as well as attractive.
Of course, at Blue Ridge, like other projects launched at that time, formalities were not complete, sample flat and site office was not ready but the track record and reputation of the builder - Paranjape Schemes - was exceptionally good. Which motivated property buyers to book at an unbelievable property rate of Rs. 3,200 per sq.ft.
Pre Launch Property Rate of Blue Ridge:However, at Paranjape Schemes' office couple of weeks before the project was launched officially, pre-launch booking of Blue Ridge was happening at the property rate of Rs. 2,700 per sq. ft.
Basic Property Rate According to Paranjape Schemes:Considering that the American Dream is over and henceforth we can't use Uncle Sam's credit card to fuel our GDP growth, we should be responsible and realistic. I think, we should accept Paranjape Schemes' basic pre- launch property rate of Rs. 2,700 per sq.ft., not only for the 2nd phase but for the bookings of the 1st phase too.
Ramesh T Jogani's advice:Besides the property rate, i am sure, Paranjape Schemes' would be happy to follow Mr. Ramesh T. Jogani who is their financial advisor and one of the most respected real estate marketing professional in India.
As per Mr. Jogani's suggestion, on their own, Blue Ridge Hinjewadi will cancel covered car parking charges of Rs. 1,50,000 and floor rise of Rs. 20 per floor for 8Th to 20Th floor and bring down the premium rate, Rs.3,800 per sq.ft., applicable for 21st to 25Th floor to Rs.3,200 per sq.ft.
However, you can't expect Paranjape Schemes' to reduce the infrastructure charges of Rs. 1,00,000 because they are going to provide you infrastructure services like water, electricity, waste management, security and all.
What about maintenance and the sustainability?For sure, sustainability of Blue Ridge is a big issue! Till now, it is not clear to me how this township is going to sustain? Because SEZ is not a part of Blue Ridge Township and hotel or mall and multiplex may not generate enough revenue to make this township sustainable. Every property buyer should visit DSK Vishwa to understand the importance of sustainability.
Be realistic and reasonable:You can't expect to get the property rate of Rs.2,700 without making few changes in the original plan of the township. For example 2 level under ground car parking, few amenities, open space may be canceled. In fact more than making few changes, Paranjape Schemes and Arc. Aniruddha Vaidya and Associates must look at the planning of the entire township in the new light and rework on it.
Globalization, Indian growth story, fastest growing economy, emerging markets and all is over, gone, finish. World is in "deep recession". India may go into deflation. Whenever we will come out of it, world would be different. "Buy American" is just the beginning.
Point is nobody dreams of becoming a world citizen anymore. But citizen of Paranjape Schemes? Any time!
What is your take on the rational rate of Blue Ridge Hinjewadi?Dear Rajesh, according to me Rs.2,700 per sq.ft. + 1 lakh infrastructure Charges + Stamp Duty @ 2% (approx) + Registration fees 31,000 is the right price for Blue Ridge at Hinjewadi.
Which means that total cost of C type 3 bhk flat of 1730 sq.ft. would be Rs.48 lakh (approx) and 2 bhk flat of 1335 sq.ft. would be Rs.37,35,500. Rajesh, this pricing will make Blue Ridge attractive and safe investment destination for you.
This is my suggestion to Rajesh. What would you like to suggest? What is the rational property rate of Blue Ridge according to you? Please, quote your rate and your reasoning in the comments (Comments Policy), forward this blog post to your friends - ask their opinion, post this on your company intra net and help Rajesh to book a 3 bhk flat at Blue Ridge. Thanks!
Feel free to call me:I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 5 minutes!) Call +91 98600 44110
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