Around 300 buyers seeking to exit the DLF Garden City project converged at the DLF office on Saturday evening (28 March 2009) and refused to leave until DLF agreed to refund their money.
After schools like PSBB, PSBB Millennium and Vidya Mandir (Mylapore) offering to be features in prestigious real estate projects of L&T Eden Park, DLF Garden City and L&T Arun Excello Estancia respectively, now, it the turn of schools to offer homes as part of their campus.
Read more about Vael’s Billabong High’s plan and why (I think) Infosys may be the next to jump into selling homes within their campus.
Homes for 5 to 10 lakhs
Yes, you read it right. Five Lakhs to Ten Lakhs is the range.
Following Real Value Neel Kamal and Provident Housing CosmoCity, it is now the turn of Unitech to offer low cost apartments. Unitech proposes to offer housing options in the range of Rs.5-10 lakhs. On a related note – the next step in this quest among builders to offer low cost housing, will probably be to take the Laurie Baker route.
To know more about the project and related note on “Laurie Baker route”, read Unitech plans to offer apartments for Rs.5-10 lakhs
DLF is not a bank
DLF has started making refunds to buyers on a case-by-case basis. Buyers say that around 561 have submitted letters seeking exit from the project. But DLF says..
DLF Spokesperson :
“This is not a current account that you put in the money and withdraw whenever you want to.”
Read more at : DLF starts refunds ; 561 of 1800 in queue, say buyers
Even when existing players are finding it hard to sell their inventory, Hyderabad’s BSCPL is launching a mega township of 4500 residential units, named Bollineni Hillside, very near DLF Garden City. The size of the project and the location would likely draw comparision with DLF Garden City project.
It seems only DLF did not factor the changing economic scenario, reducing costs of construction and lowering interest rates, when it had fixed the prices for its projects. They sited those reasons when they made a price cut recently.
All other builders were wise enough to forsee the problems and had priced their projects right. Some go to the extent of suggesting that reducing the prices can only result in reduced quality and hence they will not reduce prices in their projects.
Justifying the need to retain old prices seems to be a problem at hand for the builders. Either they need to come up with convincing answers on why they will not reduce the prices or they will have to bite the bullet.
Read about what some builders have to say..
Recent Posts in my other Blogs..
Estancia Integrated Township, at Maraimalai Nagar, is all set to get an exclusive BSNL telephone exchange within the complex, enabling “Total Telecom Solutions” to all the residential units, as per the MoU signed between the promoters (L & T and Arun Excello) and BSNL.
The Economic Times
As per the MoU, BSNL would extend copper-optic fiber connectivity with 100 per cent redundancy to all buildings inside Estancia to deliver its services including voice and data services, high speed broadband, centrex facility, mobile services, wi-fi hotspots, MPLS-VPN and Internet lines.
BSNL would give the 1900 residents a deposit free telephone connection with STD facility and supply the telephone instrument free of cost.
Full article here [economictimes.indiatimes.com]
While the proposal of setting up telephone exchanges is an obvious necessity for such large townships in farther suburbs, it is always better to have provision for multiple players.
In our 10 year old apartment complex in Velachery, BSNL does have underground lines running to all blocks and into the apartments. Enabling a new connection in an apartment is as easy as plugging the phone into sockets (after the line is configured to go live).
But, all other lines including Hathway (cable internet), Airtel Landline, etc.,. have their wires hanging between blocks and running through windows into the residential units. So, it is important that additional concealed piping is made available for other competing service providers to route their land-line services, at a later date.
Hope such MoU-s do not have clauses for blocking out additional provisions for competing services.
The official press release on the MoU between L & T Arun Excello and BSNL adds..
‘We have signed around 100 such agreements with real estate developers so that they can offer a telecom-ready building to their customers,’ he added.
L & T Arun Excello will construct and offer BSNL 2,500 sq.ft building for running a telephone exchange on annual lease rent of Re.1. For the telecom giant it is a winning deal as the township project has 1,900 residential apartments, an IT special economic zone (SEZ), hotel, mall and other facilities.
‘We will recover our investment of Rs.60 million in a year’s time,’ said Velusamy.
Full Press Release here [indiaprwire.com]
Wow !! The six crores spent is to be recovered in a year’s time !!
That works out to billing each apartment nearly Rs.32000 / year or around Rs.2650 / month (considering 1900 residential units).
(This post is part of the discussion thread on L&T Arun Excello Estancia)