Comments on XS Real by Mr.Suresh -Vice President marketing – XS Real

We have being hearing quite few comments on XS Real Padur project -Bella Tuscany. Mr. Suresh, VP Marketing ,XS Real took time to come to our blog and had patiently put his side of views to us. I am feeling bit comfortable seeing his argument. Believe me after seeing some comments from a forum on problems with Pune builders, i thought builders in Chennai are much much better.
 

Need less to say, i am not justifying the practice of builders starting the project as soft launch and make folks wait for approvals.They should stop that and there should be strict laws to prevent it from happening.

Dear Friends,
I introduce myself; I am Suresh. This post is in my official capacity as Vice President – Marketing at XS Real Properties Private Limited.
Thank you all for pointing out your grievances on the way we had handled the situations in Padur project, I am sure you all would appreciate to know our version of the situation, before you form an opinion on the company
For the past several weeks, I have been observing indignant and resentful remarks about the way XS Real had handled customers who have booked in our Padur project.
While we were not present in this space we were continuously addressing the grievances of every customer through emails and telephone calls.
Many customers had come directly to our office and were apprised of the situation.
Now I wish to participate in this forum and address all of you guys out there about the current misconception on the Padur project. What I shall do is to state all the facts and leave the case to rest in your hands.
Allow me to explain the whole saga of booking in Padur which happened from December 2006 to March 2008, for your understanding. The 80 apartments were planned out in 5 different blocks. The sequence which we followed for the release was D,E,B,A & C. Once the 80 apartments were booked we also opened up the 12 apartment in the adjacent Precinct 4. The entire sales were completed by the first week of April, 2007.
We were expecting to publicly launch the project at Rs.3600/- per sq.ft. after obtaining DTCP approvals. We had wanted our existing customers, their friends and acquaintances to benefit from the project. As a gesture of thanks giving for having been with us for long, we wanted to offer substantial discounts to the launch price, to these special people.
Even during the pre launch, we had given a detailed floor plan, specifications inside the complex, amenities coming up in the complex, a detailed price list which showed all components of the price, a payment schedule and a car parking plan from which people could select their car parks. Buyers had spent time with us to compare each option and only then book. Every buyer was offered the same levels of information, consideration and respect.
As you know real estate developments could get delayed for a number of reasons- delay in approvals, title issues …whatever. Delays have happened many times before to projects and they may happen yet again to other projects in future. But what would differentiate developers is the manner in which such delays have been handled.
We had, time and again, through communications on –
April 30, 2007, June 20, 2007, October 13, 2007, November 29, 2007, December 24, 2007, February 15, 2008 and February 25, 2008-
– Informed about delays and the options available for home buyers – including withdrawals.
Our intention on communicating such delays was that people who were becoming uncomfortable could decide on withdrawals. Since there were other projects going on in the market, we wanted people not to miss out on opportunities. In fact, we even suggested a few developers where people could look at properties. Also on our own volition, to those who wished to leave, we had paid compensatory interest of 8% from the date they booked till the date they withdrew.
Even though we had constantly communicated this delay, our people were working diligently in the back ground to set things right and take the project forward. That is how the decision to launch in February 2008 came about.
One of the most difficult situations which can arise because of project delay is cost over runs.
The mistake we made was in assuming that home buyers would be able to bear the cost overrun. Accordingly we had sent a communication to all customers, both existing and cancelled, (even for those cancelled apartments, we wanted to first offer the apartments to the same customers – only if they refuse were we thinking of offering those apartments in the open market) about a suggestive price increase of Rs. 475/- per. sq.ft.
When well meaning customers pointed out that it is not correct to ask home owners to bear the cost increase, we immediately rectified the situation and withdrew the entire increase.
Is there not a saying, ` To err is human’? What else is a company but a collection of human beings?
Please understand that the crux of situation is that XS Real has rightfully absorbed the escalation in input material cost which has been quite steep in 2007 and 2008 as you may have observed. Our Padur customers who had booked from Rs 2570/- per sq.ft onwards will all get the benefit of the market appreciation.
Not only have we NOT increased the price for all our previous customers, but even for those customers who left in the meantime, because the delay was getting difficult, we have offered the same apartment that they had previously booked, at the SAME, ORIGINAL price.
XS Real is a customer sensitive organisation. Never ever would we do any thing which affects our customers- EVER.
Mistakes may occur but once they are pointed out XS Real will take every effort possible to correct itself.
I could understand all this if we are not open to dialogues. Every single customer has access to concerned officers in the company.
We fully understand the frustrations of our customers because of the delay. We only want to say we will do all that is possible to see that they gets their apartments at the soonest possible time. Development of a large residential project calls for collective cooperation from all concerned—developer, customers, vendors…all.
XS Real has always been a customer friendly company. Our endeavour has always been to provide better value for the time, trust and money, which people invest in us. We intend to continue in the same path by offering many more exciting products and excellent customer care, in the days to come.
Let me sum up dear friends,
XS Real has never done anything unlawful.
Whenever there were grievances or misunderstandings we had taken a number of steps to address all of them within time.
In our past projects we have provided amenities which people even did not ask for.
We have gone beyond the call of duty like helping people (especially NRIs) to rent or resell their apartments, a service which is not part of the original scope.
Even our attempts to provide uniqueness to our developments were to make people proud of their possessions. Of course we had our commercial considerations but they were always in tune to what we had offered as products and services.
You need not take my word here. Please check with anyone who has purchased with XS Real in the past.
Hopefully esteemed people like you would understand the truth. My sincere and respectful thanks to all members who have addressed their grievances in this forum thereby giving me an opportunity to publicly clarify.
Thanks and Regards,
S. Suresh
Vice President-Marketing
XS Real Properties Private Limited

Dear Shruthi,
Thank you for your continuous involvement in XS Real Padur.
By expressing your grievance you have given me a chance to help address it.
Like everybody else, I understand that you also have undergone difficulties, because of delays in the project.
Let me assure you, XS Real has not done anything atrocious!
Let me remind you … your brother actually booked an apartment on January 23, 2007 for a net price of Rs. 2770/- per sq.ft.
We announced the P4 opening and you had booked one apartment at Rs.3400/- per sq.ft on March 29, 2007. This was the prevailing price at that moment. (We were about to go public with the launch at Rs. 3600/- per sq.ft. We were just waiting for the approvals). Please note that along with you,10 other customers also had booked apartments in P4 at similar prices. All our records are there to prove it. Also between the dates of these two bookings, there is a clear gap of 72 days (10 weeks) and not two weeks.
You could see that the entire booking sequence was based on demand at that point of time. People have been entering the project at various timelines at various price points. It so happened that you had arrived along with the last batch of customers.
When we found that Precinct 5 approvals are going to come sooner, and when a few cancellations in Precinct 5 happened, we did inform you and assist you to book in Precinct 5.
Also along with all others, we had kept you informed periodically about all the activities which are happening at XS Real Padur project.
How is it logically possible for us to offer you an apartment at a price point which is lower than what customers in block A, C or the erstwhile P4 have paid? Will it not harm the interest of other people who had booked with us?
Especially when, in the meantime, a number of other people had purchased from us at various price points between Rs 2770 and 3450?
Please understand Shruthi, as a responsible developer we are duty bound to take care of the interest of all customers equally and collectively.
You always had the option of deciding what to do with your investment, yet I am thankful for your continued involvement in XS Real Padur.
Shruthi, XS Real never wanted to send away customers who had booked at low prices. If that was our intention we would never even be in communication with people after they had cancelled. Even though you had cancelled, are we not offering, the same apartment, at the same price which you had booked in March 2007?
We would humbly like to know, where we have done any crookedness.
We had told all homebuyers who had booked with us that this is a pre launch and as such construction dates could vary based on the ground realities. People accepted and have booked at the attractive price levels offered.
Just because the project has not taken off, it is patently unjust to call us crooks.
Please look at the actions we have taken..
Have people been periodically informed about the delay? Yes. We had informed.
Were attempts been made to rectify the delay situation? We had and we continue to take actions.
People who had wanted to leave- was there some compensation offered? We had offered a reasonable 8% interest on their booking deposit from the date of their booking till the date of their withdrawal.
People who have booked at the earlier prices continue to have their bookings at the same price itself- without a single rupee increase. In fact we had informed every single customer who had or had to cancel also about the same apartments being offered to them at the same price as before.
Shruthi, we understand your pain and frustration. Within reasonable limits we would always want to satisfy customers. Our only recourse left today is to provide you with a magnificent apartment which you would feel truly proud of. I am sure by the time Bella Tuscany takes shape and you visually experience it, all the present ill feelings would melt away like a bad dream.
Thank you once again for bringing your grievance to us.
Suresh
Vice President – Marketing

32 Comments

  1. Viji

    Mr. Suresh, I appreciate you clarifying the points patiently and professionally. However, I fail to u’stand one thing – why should the builders collect the money and carry on with the booking before putting everything in order. Believe me, for the big builders it could just be another project or usual delays but for buyers like us buying a home is a dream and the mental torment such a delay causes to a one time buyer like us is awful. In my case with Jain Housing, I would hv made atleast 50 Phone calls from the U.S to the builder after having diligently done all the paper work for the loan processing etc. Needless to say, we lost umpteen oppurtnities during this delay and ended up paying 15- 20 Lakhs more to buy a similar flat. Hope builders will realize this and stop marketing their projects before obtaining all the approvals.

  2. Dear Uday and Viji,

    Uday thank you very much for treating my comments with prominence.

    Viji thank you for sharing your experience through your post.

    I agree with both of you 100%. Without having approvals and be in a position to start construction, it is not correct to do Pre- launches.

    But not all Pre launches are done with any crookedness in mind.

    See- there are different shades of developers. There are developers who have not even acquired land and yet do pre launches.
    There are others who have not even applied for government sanctions, yet do Pre Launches.
    Then are others who have tied up the land, applied for Approvals, followed up with Institutions concerned for the Approvals and only then Pre Launch.( If you ask me whether this is a fine thing to do, with hindsight, I`d say no. But in the past, if approvals were forthcoming within a reasonable period of time, say 3 to 4 months, Companies do take this risk.)
    Take our case in XS Real. We had completed land registration of the land needed for Padur Project, In the name of our SPV, Helios Estate Private Limited, by August 2006. We had applied for Approvals with Directorate of Town and Country Planning by September 2006.Normally the Approvals take 3 to 4 months. We were expecting the Fee Order in December 2006 and so we launched the Project in December 2006.( Fee Order is the Order given by the concerned authorities asking the Company to pay development charges. This is issued only after all queries have been properly answered and all due diligence completed. Once the Fee Order is issued and payments made, then there is generally only a procedural time gap before approvals are passed on from DTCP or CMDA to the Local Body, and then to the Company. 99% – if the Fee Order is through then the approval is through.)

    We had planned our public launch on January 18 2007, confident that the approval would be ready by the time of the public launch. In fact we even released two large corporate advertisements in The Hindu and the Economic Times, during the first half of January 2007!

    To repeat what I had mentioned before, we had given home buyers, as much information as possible before the bookings were accepted. Front Elevations, Floor Plans, Detailed Specifications, Payment Schedule, Detailed Price Lists, Location Maps Site Maps etc., We had also told every body that the approvals had not yet come but were expected soon.
    Then the delays struck. Let me not go into it again. This link should illustrate one of the reasons.

    http://www.hindu.com/2007/06/05/stories/2007060516220100.htm

    At least in our case there was no working capital augmentation through Pre Launches. Our finances were tied up and we had already started spending huge sums of our own money. In Padur, the entire property was levelled and elevated. We had started laying large internal roads 60 feet wide, crisscrossing the property. The roads are there even today. We had started constructing a model apartment and marketing office. We had tied up with large contractors, architects and landscaping companies…… and so on and so forth. In fact we have to take up the road work afresh.

    One of the most expected events for 2008 in our Industry is the Appointment of a Regulator on the lines of SEBI for the Financial Markets, TRAI for Telecom and IRDA for Insurance. As a Real Estate Organisation following right corporate practices, we welcome such a Regulator. I personally believe once a Regulator come on then Pre Launches could cease.
    Hopefully the Regulator could speed up approval sanctioning time as well. I am sure every one from the Industry would in one voice be welcoming reduction in Approval Time!

    However, as you all have pointed out we shall definitely adopt corrective measures from now on.

    Thank you and with Regards,
    Suresh
    Vice President- Marketing
    XS Real Properties Private Limited

  3. Viji

    Thanks Suesh for taking time off to give your prespective. Your answers look reasonable to me. The so called word of mouth is getting more and more powerful in this enthralling internet world. As long as the builders are cognizant of this fact and work within ethical boundaries, they are going to be more and more successful.

    Side note: After my bitter experience with Jain Housing, I booked a flat with Ramaniyam thru’ my friends ref. In the last 1+ year of my experience, Ramaniyam mgmt and their staff continue to impress me, although I don’t know much about their reputation in the market. Their attitude and flexibility towards personalization and changes is clearly the highlight.

  4. Prem Kumar

    Mr. Suresh,

    I am very much impressed by your time and effort to explain your point of view.

    Uday,

    Keep up the good work and thanks a lot for your efforts

  5. Raja

    It is sad to note that Mr.Suresh had gone silent after Shruthi’s response to his clarifications under the original article. Does that mean something ;0)

  6. Dear Raja,

    Thanks for your comment. It is definitely not because we have any thing to hide! It so happened that there was a Property Fair organised by Citibank on March 21 to 23, 2008 and XS Real also was participating. I got tied up with helping my colleagues with the Propfair.
    Now what Shruti mentions about he having received the letter from me is true.It is also true that he was kept in touch during that period in February and March 2007.
    Now Shruti rightfully chose to pass up an opportunity to book the apartment at a higher price and chose to come tio us when the price level were to his liking–then– at Rs 3400/-
    One of the most complicated things in Real Estate Marketing is price discovery. Why, you may ask?
    For the simple reason that there are no known proper, realiable historical indices available for real estate markets in India.All you have is some trend indicators compiled by the likes of JoneslangLaSalle or Colliers. But these are broad market indicators and I am not too sure whether such companies agree with one another on their compiling.
    Look at the confusion in prescribing guideline values. Sometimes we see adjacent streets having very different values is it not?
    Or to make it even simpler, just look at the real estate prices today prevailing on the OMR-you have prices ranging from Rs 2800/- to Rs 4150/-all within a 6 to 10 km radius.
    Now, this is in a market which has substantially corrected. Imagine the confusion in an upwardly trending market.
    Why don`t we fix the price on a cost plus basis you may ask…that is land cost+construction cost+expenses+margins?
    That is because unlike the past decade the real estate players all have some financial or land owner partners or worse they are answerable to the stock market on a quarterly basis…It is the same as in any other industry–we try to find the best price that the market can bear.
    What is the tool which developers use for this?The Pre launch period of course. Prices are tested across buyers and the best prices are selected for the launch on a public platform. Established developers always settle the price differences for all their previous buyers at higher rates.
    We did have people who had booked at Rs 3945..when we gave Shruti his apartment at Rs 3400/- every other person who had booked at higher rates also was given similiar advantage.I do have records to prove that.
    Once again Raja, people like Shruti are very important to me. Unless they point out my deficiencies how would I ever know?
    Maya and Shruti were mentioning about providing further discounts to all people from the previous rates.
    See ultimately this business is all about a win win situation for both the home buyer and the developer. If the proposition becomes unviable for the developer then also it will not work is it not? We have rightfully absorbed the cost increase and are offering the apartments at the same prices. We are NOT reducing the quality of Bella Tuscany. In fact right now I am engaged in asking people to compare the prices in all their components and tell us if there are any discrepancies.Many of them have responded stating that they are fine with the prices in all components.
    We are getting ready to construct the apartments.
    Maya let me respectfully state that I am not looking to absolve our responsibilities from the situation. Only because we are a responsible Corporate Citizen are we coming up and stating out reasons. Do not think we are defending ourselves. It is not really easy for me to come out up front and converse in this manner. Let me reiterate XS Real is doing this because we truly value our customers and our relationship with them. Whether we live up to this intention, only time will tell. At least I can state that we will do our very best.
    Thank you Shruti, Maya and you Raja for your continued interest in XS Real.

    Suresh
    Vice President- Marketing
    XS Real Properties Private Limited

  7. Dear Raja,

    One more thing–I am not looking to get into any arguements with any body! Wherever possible let me address real concerns, that is all.Neither am I trying to convince any body. When some people felt hurt by our actions I just felt that better clarity would emerge if I came along and stated my version.
    Any ways it has been great knowing people through this forum.

    Regards,

    Suresh
    VPM- XS Real

  8. Srini

    Hello Viji,

    Read your comments on Ramaniyam. What project was this could I ask? Does anyone else have comments on Ramaniyam? Projects: Rhythmm, Gaurav etc.

    The note from Mr Suresh is really good. Inspite of complaints if the company has people like Mr. Suresh who can come and give such detailed explanations, I would be satisfied.

    Even big builders like Sobha Developers in Bangalore take their customers for a ride…..similar stories….. I only wish they had half the sincerity that Mr Suresh seems to share here.

    Does anyone know more about the Registrar for Real Estate Companies, that Mt Suresh has referred?

  9. Viji

    Hi, It is Sanjivini.

  10. Hi, Srini,

    Thank you for your comments. I was referring to a Regulator for Real Estate Markets, an Authority who would look at the interests of the consuming public, in residential markets.

    It is widely expected to have the Regulator in place in 2008. My feeling is that the Regulator will be appointed in 2009, after the General Elections.

    Please see the links below to get some idea.

    http://www.livemint.com/2007/11/28165654/Real-estate-regulator-to-start.html

    http://economictimes.indiatimes.com/Markets/Real_Estate/NHB_be_made_real_estate_regulator_Parekh/rssarticleshow/2687042.cms

    http://economictimes.indiatimes.com/Home_buyers_face_smaller_penalty/articleshow/2155204.cms

    Thank you.

    Suresh

  11. Raja

    Suresh, Thanks. Atleast there is some agreement of the price offered in Jan end and March end which was 2770 & 3400 respectively. I agree that you will have to be profitable and answerable to the stock market if you are listed.
    Your first apt was sold @2770 sq. feet which was the price decided by you taking into account the land cost, construction cost, margin etc. etc. If it is not reasonably profitable, you wouldn’t sell an apat at this price. Then within 2 months you are taking your price to 3400/sq feet. That is a whopping 25% increase in 2 months!!!! Because response was high and demand was more. Any businessman would increase the price when the demand is more. Agreed. But when he increases it by 25% in 2 months on a product that costs 50+ lakhs, it is called exploitation in my view. Pl. don’t say that the construction cost has gone up by 25% in 2 months. Somewhere I read about corporate citizenship. I wonder if this is what is extected out of a corporate citizen. In my view the reason for the unreastic increase in the real estate price in Chennai and elsewhere in India is because of this greediness. I appreciate you answering most of our questions in public. But these are the simple questions running in everyones mind. Maybe there is something that the builders see and we as consumers do not see. My apologies if I sound rough.

  12. uday

    True Srini,

    With lot of builders lacking even basic ethics, it is at least good to see some one like Mr.Suresh coming and take so much pain to explain their stance and keep buyers informed on all things.

    I think it should go a long way in retaining their leadership and becoming a preferred buyer one day.

  13. Dear Raja,

    Thank you for your comments, which I have reproduced below:
    Comment from Raja
    Time: March 31, 2008, 1:47 am
    Your first apt was sold @2770 sq. feet which was the price decided by you taking into account the land cost, construction cost, margin etc. etc. If it is not reasonably profitable, you wouldn’t sell an apat at this price. Then within 2 months you are taking your price to 3400/sq feet. That is a whopping 25% increase in 2 months!!!! Because response was high and demand was more. Any businessman would increase the price when the demand is more. Agreed. But when he increases it by 25% in 2 months on a product that costs 50+ lakhs, it is called exploitation in my view. Pl. don’t say that the construction cost has gone up by 25% in 2 months. Somewhere I read about corporate citizenship. I wonder if this is what is extected out of a corporate citizen. In my view the reason for the unreastic increase in the real estate price in Chennai and elsewhere in India is because of this greediness.
    ===========================================
    Please do not think I am trying to justify my point of view.

    When we had private- launched our Padur Project in December 2006, ( starting from Block D,E,B,A and C) I sold the first few apartments in Block D at Rs 2570/-We were absolutely clear in our minds then itself that the public launch will be for Rs 3295/-These apartments were offerred to our existing customers and well wishers at Rs 2570/- as a token of our appreciation for their continued support. In fact we had mentioned this fact to all prospects who visited us in December 2006.
    This is an extract of my mail sent to prospects on December 17, 2006:
    ”As a beginning, to exclusive people, we had opened up Block D in Precinct 05. Very few apartments are left in Block D. We shall also open up Block E soon but at a different price point. ”
    This is from a mail sent on January 2007:
    ”A Block apartments are offered at Rs 2946/- per sq.ft. Do note that the launch price (February 13, 2007) in XS Real Padur is expected to be at least Rs 3295/- per sq.ft.”
    So contrary to what you think we were not arbitrarily increasing prices to satisfy any pangs of greed.
    You say that only with a reasonable profit we would start selling? Not necessarily Raja.When we sold for Rs 2570/- we were not making profits and we were aware of it. Since we were doing a very large project we wanted enthusiastic participation from our existing customers- (and touch wood, they were all there when we needed them.)We were looking at an avaerage realisation of Rs 2770+ for which apartments have to be sold at prices higher than Rs 2770/- because we had given a number of apartments for prices between Rs 2570 and Rs 2770.
    For a person looking at this scenario one year hence it may look like an exhibition of greed but in reality we were only working towards the launch price of Rs 3295/- per sq.ft.
    Let me also tell you this -as we progressed towards the close of sale in this 80 apartment complex we found that most of our known circles had come in and we were getting people who were a little removed from the first level of our close circle of customers.
    Meanwhile in February 2007, markets were moving up and peaking ( of course no one knew this then) and we revised our prices from Rs 3295 to Rs 3400/-
    So let me humbly suggest that we were not at all hiking up because of construction costs going up. In our case since, as a rule we begin construction only after obtaining approvals, the actual impact of construction costs would have sunk in only later any which way.
    Even today the customers who are with us are mostly people who know they have got a good deal with attractive prices starting from Rs 2570 onwards. As you know by now we have absorbed the increase in costs between December 2006 and now so our current group of customers are quite satisfied.
    I reiterate that only because we think we are a responsible corporate citizen do we come forward and explain our point of view.Also it is important for me to tell netizens like you that what apparently looked like arbtirary price hikes were in truth not so.
    Raja, also let me add that we have ironed out all diffences in our approval for Precinct 5 ( which contains these 80 apartments ) and are going forward with the construction. We have finalised our contractors and we will begin construction during the first week of May 2008. We expect to deliver these apartments within 15 to 18 months time which means Bella Tuscany Fontana Apartments would be a reality in the third quarter of 2009.

  14. Dear Raja,

    To continue further, in a different vien,
    this whole matter of greed is a view point which has not been thoroughly analysed.
    When land owners increase the price suddenly from Rs 3 crores an acre to 5 crores and then 8 crores within weeks what are developers supposed to do?
    When Government agencies promise to give approvals in 2 to 3 months and then make developers run from pillar to post for 9 to 12 months what happens to the enormous escalation which happens to the project in terms of time delays and contractor/consultant penalties?
    What we do when input costs become subjects of run away inflation and whatever budgets were originally planned all go awry, yet projects have not started or are in their embryonic development?
    Would the buyer fraternity accept escalation clause in their agreements? Wouldn`t there be great resistance?Then what are developers supposed to do?
    To top it all our Planning Agencies still do not clear doubts about development norms.Many rules are subject to arbitrary interpretations.A case in point- car parking. Basement constructions are frowned upon, yet we have to give as many car parks as possible according to EIA.
    Raja I am not justifying price increases by developers. Sometimes there are other factors also which add up to give a wrong overall perception.
    Having said all this I also would like to join hands in comdemning in the strongest possible terms any tendencies of profiteering or plain greed by any one, with respect to any commodity.

    Warm Regards,

    Suresh S
    Vice President Marketing
    XS Real Properties Private Limited

  15. Uday,
    Thank you very much four comments.It is a pleasure for me to participate in your forum. Another matter of great pride is that for our La Celeste Project off Mount Poonamallee Road, we have obtained all CMDA approvals, including planning permit for the total 9.85 acres and we have commenced construction as well.So our current selling propositions are grounded on true blue ethical realities!

    Warm Regards,

    Suresh

  16. Siva

    Hi Suresh
    Though i just came across this forum, this is something which gives me immense satisfaction with a feeling that all is not lost… with special reference to the ways you have handled the core issue…which will give a new insight to people who have been losing hopes on our system…and give them an idea “all will be well if you reach out to the right kind of people..”Pl keep the good work going.. u hv been doing a great job..God bless you

  17. Raja

    Suresh, Thanks for your response. As a matter of fact I called XSReal much before the launch of your Chesterfield project couple of years back; Neither was I referred by any of your existing customers, nor did I know anyone in XSReal. I was offered a pre-launch price. Does it mean I was considered exclusive and offered a profitless price?
    Anyway I leave it to the judgement of the readers. Please don’t read me wrong here. I’m not singling out XSReal here. I just saw it as an example of how such a price hikes ultimately lead to the current state of Real Estate market in Chennai.

  18. Dear Raja,
    Thank you very much for your response once again. You are possibly right in saying that you were offered pre launch prices for Chesterfields.
    You see, what has been happening is that over a period of time, between two projects people who contact us are maintained in a database and when the project is ready for launch, these people also are offered the same pre launch prices. It is in this count that you were possibly offered the same price.
    Raja, the point is as long as the projects start within the stipulated time, there is absolutely no problem either for the prospect who gets a special price or for the company. Complications arise only when there is delay in project kickoff.
    Let me be honest in saying that we have decided not to get on with pre launches any more specifically because of the bitter experiences we have had with our Padur project.
    Let me be honest in also saying that for other projects like Chesterfields we did offer pre launch prices. In every instant we could begin the project on time and there was no problems.
    If you are alluring to the point that there aren’t any differences between a previous customer and a totally new prospect, let me respectfully desist from agreeing with you.
    once a relationship builds, we always try and maintain it, not always with financial factors. Many a times, we had spent money in terms of maintenance support.
    All said, your point is well made – pre launches are not really a comfortable route for doing this business especially with too much of delays coming from approving agencies. Thanks once again for your comments.
    Please see this link:
    http://www.indianrealtynews.com/real-estate-india/chennai-realty-projects-in-limbo.html
    Regards
    Suresh

  19. Dear Siva,
    Thank you so much for your wishes.
    Regards,
    Suresh

  20. Raja

    Suresh, Thanks. You are not answerable to Tom, Dick, Harry & Raja. Whether we agree with you on everything is different but the fact that you take the feedback +vely, try to incorporate it in your system and respond to the points with your perspective is truly appreciated.

  21. Srini

    On a different matter and since Suresh you are in the real estate business, I am taking the liberty to ask a professional source a question on most peoples mind, How does the Builder Community see the state of real estate in Chennai in terms of sluggish vs demand, transparency, flats / plots sq/ft rates, guidance values steady?, plot Vs flats around Chennai, builders and new real estate builder entrants from abroad and their impact, govt policies, and on hot areas of Chennai. is OMR? GST?… hot these days?

    I also address this to others who are more knowledgeable or have information based on current facts from Chennai. Would like to know given the rise in inflation, food riots, gas prices hitting the roof all over the world, the crashing real estate market in 2007/2008 in US and now in Europe other places..

  22. akj

    I am planning to buy Xs real property at OMR – AMITY project.
    Rate is 1895 / sq. ft.
    is this investment is safe ?

  23. Ingly

    Suresh,
    What about the Amity project? Do you have all the approvals in place? Can you confidently say that there wont be issues of cancellations with that project?

  24. Dear Ingly,
    I am Suresh here, Vice President Marketing of XS Real Properties P Ltd.
    The DTCP has verified the technical aspects and approved the plan and has directed Mahabalipuram Local Planning Authority [MLPA] to issue necessary Planning Permit. Our Approval number is 96/2009. Based on this technical approval the MLPA has asked to pay the necessary fees vide their letter 81/2009 dated 03.06.2009 for the issuance of Planning Permit. We have already paid necessary fees as directed by MLPA.

    We are yet to receive clearance from MLPA. This is because of one common issue pending between all Developers of Chennai and the Government. We refer to payment of Infrastructure and Amenities charges which amounts to Rs.500/- per Sq.mtr or Rs. 46.50Ps/ per sq.ft to the government. Please refer to the article link here: http://timesofindia.indiatimes.com/articleshow/4641934.cms

    As you can make out from the article, CREDAI [Confederation of Real Estate Developers in India] which represent the developers has gone to court challenging the collection of Infrastructure and amenities charges. The Chennai High Court has stayed the collection of Infrastructure Charges, and currently the case stands adjourned.
    We expect some development in the next three weeks.
    • If the High Court gives verdict in favor of CREDAI there will be no Infrastructure Charges payment, we will receive planning permit from MLPA and will start construction –by the first week of August 2009.
    • If High Court gives verdict in favor of the government then we will pay the necessary Infrastructure charges, collect the planning permit from the MLPA and proceed with the construction as planned by first week of August, 2009. In such an eventuality we shall be constrained to collect the fee of Rs.50/ per Sq.ft from you and pass it on to the Government.
    • If the case gets further adjourned / delayed/ or not decided, then also, we shall pay the requisite fee, collect the planning permit and proceed with the construction as scheduled, by first week of August 2009. This is because we have a delivery schedule to meet and can ill afford to wait endlessly for the Infrastructure fee issue to be sorted out.
    Ingly,we are presently waiting for Planning Permit clearance patiently because we wish to save our customers Rs.50/- per sq. ft but if there is further pussyfooting from the Government, we intend to get on with the construction on the date mentioned above.

    I shall be sending a similar communication to all our FairSquare customers today.
    With the reference numbers given above you are free to check out with DTCP itself.
    Ingly, as on date let me assure you that Amity is a great and safe buy.
    Taking the market situation into consideration we had offered a bargain price of Rs 1895/- per sq.ft. I think for a property on the OMR, for the quality offered, for the design and for the completion period (fourth quarter of 2010) this is a fine price. (This is strictly my opinion-please do not mistake it for any promotion.)
    Let me also tell you that this price is unsustainable and we will be increasing it shortly.
    True to our values, I have attempted to answer your question as honestly as possible. Any errors in understanding, comprehension and explanation are solely mine.
    Warm Regards,

    Suresh

  25. Satyanarayan Patra

    I am a buyer of XS Real Amity. My experience with XS Real has been very disappointing.

    I was in search of good 3 bhk apartment around 25lakh for all most one year now.

    I was particularly interested in XS Real and approached them during June-July 2008. At that time I was told that there is going to be only 2 bhks and not 3 bhks. After long, during April-May 2009, I found out that they have some 3 bhk blocks as well and block L was open for booking. I wanted L3B but it was already booked. I could not understand why other blocks were not open for booking.

    Then I got interested in the G block and had asked a lot of marking guys to tell me know as soon as it releases for booking so that I can book as per my preference. I wanted G3B. But since they were not sure when it was going to open for booking, I had booked I3B for rs.1895/sq.ft. so that I would exchange once G block was open. This was during June 2009.

    When the G block opened, I was informed only after a couple of bookings already done and that too with rs.2095/sq.ft. Actually, before the G block was opened to public, some flats were already booked. I don’t understand the transparency here. So I could not get my preferred flat.

    At that time my friend was looking for the 2 bhk apartment within 15lacks. Then there was a change of plan with the 2 bhks and so my friend didn’t seem interested any more.

    Now, I hear that the 2 bhks are got converted to 3 bhks. Now I am very interested in C3A or F3B but they say both of them are gone.

    If a new customer comes and books at rs.2095 and I am also asked to book in the same rate then what is difference between us. I have continuously followed up with them from the beginning on the Amity project and have also booked a flat, with the then price of rs.1895, temporarily as per their suggestion so that I can exchange it as per my preference when they release all the blocks.

    So, every time I am forced to change my preference as per their release of blocks, plan changes and sudden unavailability. This is very disappointing as I am supposed to choose my flat and not them. I have kept calling them to get the latest updates so that I can first in queue but all in vain.

    My family and I are really disappointed with XS Real as even after my regular request to them and continues touch with them (to be the first in queue so that I could take the preferred home), I still didn’t get a home as per my preference.

    I don’t think other promoters make so many changes in plan, release just 150 houses (500 or more house is understandable) in phases at different prices in the span of few months and make it difficult for the customer to choose his preference.

    Now, I am not being given preference to book the blocks I want (F3B or C3A) and at rs.1895/sq.ft.

    Thanks,
    Satya

  26. Ramesh

    Suresh,

    what is the status now …have u received the approval ….when the construction is going to start .

    It would be great if you can reply.

    Thanks.

  27. Ramesh

    Suresh,

    What is the current status of the approval .when will the approval will be obtained for the amity.

  28. Ashok Srinivasan

    Hi

    I booked appartment at XS Real on June 2009 when the opened for H BLock and also I paid my cheque that day itself and also I received the payment receipt after 1 month
    After 3 months they are coming and say that it already blocked for some one else so I need to cancel your booking
    But I already arranged for loan and all .
    I lost credibility about the builder .
    They not even come up with other solutions
    I am not sure How many of them faced this issue .. Please keep in touch with me ashok.srinivasan@isgn.com

    Thanks & Regards
    Ashok Srinivasan

  29. Anu

    Hi Suresh,
    i have booked a flat in G block P4. I received the mails that all the approvals are through. when is the construction going to begin? I am a bit disappointed to know that the construction is not yet in full swing as the registrations are still going on. I don’t see why the construction work is pausing when registration work is going on.
    We would in fact be very appreciative if we got our flats even before Dec 2010.

  30. LOGANATHAN

    Dear Mr Suresh

    clrification required on below points

    1. is it true that XS real offers free maintence through out
    2. if it is yes, applicable for all you projets
    3. If not all what about laceleste (yes or no)
    4. if it is not covered what will be the monthly charges or yearly charges will come for lacelest porur

    thanks you very much
    Loganathan

  31. sharvari gore

    I’m frustrated customer of Cookscape – Orchid design Pvt Ltd. Bangalore. Cookscape – Orchid design Pvt Ltd is subsidary & part of XS Real Properties Private Ltd
    My kitchen cabinet (wood work) order was dated back in July 2010. As per calculation it is 4 months now i.e. 120 days since I have paid my 1st cheque for this order.

    Cookscape – Orchid Design Pvt Ltd as given in writing promises of completing the order in 30- 40 days.

    But my kitchen cabinet order is still incomplete. It is not completely delivered as confirmed and not yet installed.

    After 4 months i.e. 120 days, I am still waiting for my Kitchen cabinet to be completed, still there is lot of work pending and it is half done.

    I am extremely unhappy with this experience.

    There is absolutely no professionalism and courtesy shown as response. This was not expected from cookscape as company who claims to be in this business for years. As a customer i have to make several calls to enquire every time to check on the progress.
    Mr Prabhakar, Mr. Sudhakar, Mr. Wilson who works for bangalore Cookscape(orchide design pvt ltd) are total impossible and unprofressional people. Mr Raaja from chennai branch of cookscape & their VP/Director Mr. Srinivas– all of these people are fraud and and dont bother about the customer order and exhibit unprofessional and money minded approach. I have all these people phone call details, sms communication and & mails track of the order details & date promised. I can attached all scan & mail communciation as proof as reference

    I’m upset with this attitude and in future will not ever recommend cookscape to any of my friends/ acquaintance. I’m puuting this a official complaint on the comsumer forum.
    I’m cheated by Cookscape- Orchid design pvt ltd, bangalore. I caution all the people not to and take services of Cookscape i.e. Orchid design pvt ltd bangalore branch

    – From Mrs Sharvari Gore
    Koramangala Bangalore

  32. Anand

    I just came after looking at XSReal Siena project next to Bella Tuscany.
    The price they quote is Rs.2995/-sqft with regn, EB, etc., all extra. Delivery is 2 years time.
    And the car park is quoted at 1,82,500/- (!)
    The most interesting part is they expect 40% of the total flat cost to be paid within a month’s time EVEN before the first foundation stone is laid.
    The rest 60% has to be paid over 2 years.
    So, essentially, they start the construction ONLY with our money.
    I argued with them that i will pay for Land UDS price and regn costs alone (7 lacs), and once they start building the project, i shall see their progress and then pay.
    They refused stating “policy”.
    However, it needs to be remembered that in OMR, there are many unsold properties and resale properties (only UDS regn) available for sale at Rs.3000/- to Rs.3200/-st ft. And these are ready-to-occupy houses.

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