Unbelievable, but true. A Pune-based builder offers apartments at half the existing rate; Mumbai builders say it's not possible here
Unbelievable, but true. A Pune-based builder offers apartments at half the existing rate; Mumbai builders say it's not possible here
A leading builder from Pune has done the unthinkable. Krome builders is offering 1BHK and 2BHK flats on the outskirts of Pune at half the existing rate in the area.
Krome is planning to construct a 425 apartment complex spread over 400 acres in Vishrantwadi, which is a 20-minute drive from Koregaon Park a posh Pune locality.
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While the rates in Vishrantwadi are between Rs 2,800-3,500 per sq ft, Krome is offering flats at Rs 1,500-2,000 per sq ft.
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Quality conscious
Nainesh Nandu, managing director, Krome, said, "With the slashed rates, the profit margin will be a little less. But we will buy construction equipment in bulk and optimise our resources.
We plan to use vitrified tiles, aluminum windows and sanitary ware of the best quality. If people think we will compromise on quality, they are mistaken. They can have a look at our other projects."
Krome's competitors are stunned by the move. Michele Arora of Property Help, a brokerage firm in Pune, said, "Buyers will be attracted to the project if the builder offers flats at 50 per cent discount."
Meanwhile, builders in Mumbai say it's impossible to adopt a similar strategy here. A realty expert, who did not wish to be named, said, "Builders in Mumbai need huge profits. That's the only reason they are unwilling to reduce the rates."
A prominent builder said, "We are here to do business, not charity." Rajesh Vardhan of the Vardhaman Group says land rates are too high in the city for a similar move.
But Vibhoo Mehra of Mumbai Properties, a brokerage firm, said, "The land rates are a lot cheaper in the suburbs. I don't understand why the builders can't slash rates in those areas."
Free BMW, gold with bungalow
Krome builders that was earlier known as Kubix Realties had offered buyers a BMW car, two kilos of gold or a year's EMI free with their 5,400 sq ft, Rs 2.98-crore bungalow in Pune in November.
The bungalow had four bedrooms, a servant's room, three parking lots, and a password protected personalised elevator. The door locks were also password-protected.u00a0
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