Hiranandani Palace Gardens. Is it worth the risk?
The entry of big time property developers like Hiranandani, Purva into Chennai Real estate market was an exicting news for me. When i first met folks of Hiranandani at a property fair in 2005 at chennai, I was told that they are going to start a project within next 6 months. My wait for nearly 5 months for their project to kick start went in vain. So i moved over to some other property. But i consider my self lucky for not investing in Hiranandani properties.
HIRCO started with a bang in chennai with bigs advertisements in hindu for their new project Hiranandani Palace Gardens.For starters HIRCO is the UK listed company and is not the same Hiranandani in mumbai but its group company. This is Hirco’s first investments in india and they have started their indian story with a Palace Gardens in Chennai.
HIRCO claims that Palace gardens is spread over 500 acres with 250 acres dedicated to residential development, rest being amenities and SEZ. The recent goverment restrictions on SEZ has stopped HIRCO’s sez plans here in Chennai. But the black cloud sorrounding Palace Gardens now is that the major portion of the LAND acquired for this project is in dispute with none other than Government of TamilNadu.
PLEASE CLICK HERE TO READ HINDU ABOUT THIS
I got to know that the following 2 are the main areas under dispute
1. Former Triveni Academy - Economics Offences Wing has interfered wrt the depositors money.
2. Areas surrounding the property, bought from open market at the market price by the developer – Nisssan car factory has been promised this area by the state govt. Some of the areas are catchment areas as described in the DCR book and so not developable.
Coming back to the project.Palace Gardens is located near sriperumbadur and the proposed is mix of G+3 and G+15 complexes.While i hear that they have received approvals for G+3 and awaiting approvals for G+15. Its really a surprise that a company of such a reputation has started booking flats prior to approval. As of now i haven’t seen any cmda approval doc yet and i have asked for the same.
The housing complex is being developed purely on the growth of industries in and near Sriperumbadur. While i am sure that any one considering to buy a flat here would do so as an investment rather than a place to live. I visited the site some time back and lot needs to be done with respect to roads and other essential services. Remember Palace gardens is not exactly on the chennai – bangalore higway.
As far as the price goes, i feel Rs 2400 (Early bird price with Rs 10 up for every floor increase)is way above considering that it takes almost 30 months to complete the project.Not sure if you are aware that maintenance is Rs 2.50 / sq ft. So one has to shell out an average Rs.2000/ month for maintenance (for 1 bhk flat).
Considering the fact that propective tenants come from manufacturing industry, where an average per month
income is Rs.25000, i feel it would not be possible to rent it out above Rs 7000 for an 1 BHK house. It would be a difficult sell for a 2 BHK which comes to Rs 46 Lakhs. I feel people would think twice to rent an apartment with a monthly maintenance of Rs.4000 (2 bhk apartment 1618 sq ft * Rs 2.50 per sq ft), leave alone the rent.
While i am sceptical at this point, not sure how things would change after 2 years. It should attract investors when the SEZ plans take shape within the complex. This is my simple analysis based on the facts best known to me and
While tamil nadu is actively promoting the Mahindra-Renualt-Nissan car project, there is this proposed housing complex which got floated without CMDA / DTCP Approvals for entire project. It again reminds us to be guarded when investing in chennai real estates. Remember Sahara city homes in chennai, which was proposed in 2005 and has not yet started.
Happy Investing
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As I mentioned before customer service is EXTREMELY DODGY and UNHELPFULL with total lack of knowledge and IRRESPONSIBLE ANSWERS
Dear Ms Jyoti
Could you answer the following Three issues please…
1. Has the project been OFFICIALLY LAUNCHED AND has HIRCO GOT APPROVALS FOR ALL THE BUILDINGS?
2.Can you give us in Writing about when the project will be finished and handed over?
3. When will the sale agreements be issued?
The payment demand letters state that if the customer pays after the due date, they will have to pay an additional 18% as penalties. Since you are holding the customer accountable for the payment delays, what is Hirco’s accountability for delay in sale agreement and apartment handover. Hirco seems to very particular about demanding the interest, which is attrocious. I’ve already paid 40% of my total amount and it has taken over 1 year to complete 1 floor. I think if the project keeps getting delayed indefinitely, Hirco should give the 18% interest on the payments that they have collected to the customers.
I’ve booked for an apartment in Palace Garden too. HIRCO customer service has already started talking of Oct 2008 as the probable month of finalising agreements. As SRINI rightly pointed out, HIRCO, on the strengh of the provisional allotment letters that have been signed by unsuspecting buyers, is demanding interest for delayed payments on the one hand. On the other hand, HIRCO feels itself under no obligation to make the basic documents available to customers. Isn’t this a restrictive trade practice to deprive customers of the right to choose the banker / financier for lining up funding, by not making the documents available? Tri-partite agreement with banker and HIRCO is like a pair of double edged sword, with the buyer’s neck inbetween. I’m afraid the deal is getting murkier by the day.
Friends, Could someone help me in deciding whether to invest in Hiranandani Upscale or Palace Gardens? Which one is preferable from the point of view of investment and from the angle of staying there? I would appreciate your comments.
Dear Mr.Rohan,
Hiranandani Palace Gardens is better due to the following reasons.
1) The rate in Palace Gardens is lower than Upscale and is located in a developing area. Hence there is good scope for appreciation.
2) Many new projects are coming up in Oragadam area and hence there will be good demand for housing.
3) Palace Gardens is close to GST road and hence you will have easier access to train and airport.
It is expected that Palace Gardens will change the skyline of the area and will become a landmark for Madras in future.
Rohan & Raghu…….
Looks like this is a built up message by HPG Guys…..
When the forum members were asking too many questions and were not happy about the HPG proceedings regarding the way that Management is handling the case, and as the rating of HPG is going down ,shamefully,the message from Rohan & Raghu (I suspect is from the HPG) is trying to boost its HPG advertisement through this media.
“It is expected that Palace Gardens will change the skyline of the area and will become a landmark for Madras in future.”
Any evidence for this ridiculous speculation????
I am one of the frustated investors of HPG, also had a poor customer service, like most other investors in HPG.
There is no sign of development, when U are claiming
“will change the skyline of the area and will become a landmark for Madras in future.”
A BIG JOKE…………
Following is the note written by Jyoti Masand(Hirco Rep) in another forum, regarding the lock-in period. I have a feeling that this has something to do with the indefinite delay in executing the agreements.
As per Hirco’s policy, Company will not give transfer letters if the apartment is transferred or sold by the original buyer below prevailing card rate.
Also, the lock in period is reduced to one year provided the resale is done at prevailing card rate.
Best Regards,
jyoti
I think Mr.Jyoti Bakshi should reply to Mr.Chandra’s accusation.
I do not know about Raghu who has responded to my query but I can clarify that I am genuine NRI investor looking for investing in either of the two Hiranandani project. While I have not got any comments about Upscale, all your comments about HPG makes it clear that I should probably avoid this.
Hi Friends
Can some resident of Chennai go and check personally on the progress and on the status of sale deed which will give some handson info on the situation please!!!!!!!!
Dear All,
I understand your concerns and worries. I am a part of Hirco Sales Team.
The Master Plan for entire Phase-I is approved. As an industry norm (in the real estate sector) Government authorities approve buildings (especially high rises) in phases. We have received approval for all low rise buildings and the next approval for additional floors (for high rises) are expected shortly. The hard copy of the approvals received from the Government are available at our Mumbai Corporate Office.
We request you to inform us two days prior to your visit to our Mumbai Corporate office so that our legal team can show you the documents once you are at our office.
We are in the process of finalizing our agreements and we will share a copy once we have the final version ready. However, we can provide you with a current version of these agreements – drafts which are subject to change.
Hi Mr Baksi
Thanks for the note.
But, Hirco has been claiming the same for the High rise buildings, for the past 18 Months. Could you please confirm , UPTO WHAT FLOOR LEVEL HAVE you got the APPROVALS -PLEASE?
Also, as regards to “We are in the process of finalizing our agreements”- Has been heard for long time……..; Also, it has been postponed for quite a few times aswell. We all have been repeatedly “? Reassured ?!!!” regarding this without no actual dates for the past 12 Months.COULD YOU PLEASE confirm the dates for the same?………
Dear Mr.Rohan,
Do not be influenced by any single person’s observations. Please enquire about Hiranandani in Mumbai if you know anyone there. Also go through all the observations made by other bloggers in this forum and decide for yourself.
Also, go through comments from
THE SAME DISCUSSIONS REGARDING AGREEMENT AND APPROVALS……. JULY2007…..hI hI HI hI ……………still no change
“hkjamal
Junior Member
Join Date: Sep 2007
Posts: 1 Hiranandani Palace Gardens
——————————————————————————–
Hi There,
I would appreciate if anyone could let me know if there has been any progress with regarding the approvals for Hiranandani Palace Gardens. I have bought a flat in this project, however the builders are not forthcoming in giving information about the progress of the Project
Thanks
Regards
Hussain
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09-03-2007 #2
hmayoob
Junior Member
Join Date: Sep 2007
Posts: 1 Hassan,
I too have booked a flat at HPG and awaiting further information. I’ve spoken last week with one of top HIRCO officials who’s mentioned that the 15 storey to rise to 27 and approvals in hand.
I am keen to hear from someone who knows exactly what’s happening with these projects.
Ayoob
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09-08-2007 #3
kannan infratech
Member
Join Date: Sep 2007
Location: Chennai, India
Posts: 8 Quote:
Originally Posted by hmayoob
Hassan,
I too have booked a flat at HPG and awaiting further information. I’ve spoken last week with one of top HIRCO officials who’s mentioned that the 15 storey to rise to 27 and approvals in hand.
I am keen to hear from someone who knows exactly what’s happening with these projects.
Ayoob
Chennai can have max 60 m height buildings (20 floors) and certain areas like Ambattur where upto 70 m height (23 floors) is permitted (out of Met Radar funnel area) if Helipad is provided at the top.
Generally Chennai builders apply for either 15 metres (stilt + 4) (to launch a project) and then enhance to 60 / 70 metres later after obtaining NOCs from 18 depts (as this takes a lot of time). ”
Courtesy;http://www.indianrealestateforum.com/bangalore/t-hiranandani-palace-gardens-1841.html
Beware HPG Investors!
Rohan brought up the topic of investing in HPG.
I would like to draw attention to those thinking of investing in the HPG project and I highly recommend that these aspects be checked and probed into , regardless of if you are a short term or a long term investor.
I read a recent post that that they will allow a flat to be transferred within one year *provided* it is sold at a prevailing rate. This is total crap.
While Hirco has not mentioned this anywhere, they will do every effort to not allow anyone to transfer the property. The way they do is that the *Transfer Fee* charges will be bumped up to a ridiculous amount (something like Rs 500-1000/- psf). So if you book a flat at the prevailing rate of say Rs 3450/-, and the price at the time you decide to sell is Rs 4200 – 4500 (if at all), you will gain absolutely nothing because of high transfer charges. Even though the current policy says something like 2% total amount as the transfer fee, it is *subject to change* at any point. The same happened in their Thane project. When I wanted to sell my flat at the time of possession, they hiked the transfer fee to Rs 500 psf. So please be careful. These guys can hold you hostages. Infact, they may continue with the transfer fee policy even after giving possession of the flat till the society is formally formed.
Dev
http://sify.com/finance/imagegallery/galleryDetail.php?hgallery=14739072
1 ground plot avaialble for sale adjacent to Hiranandani Palace Gardens. 1 km from triveni academy junction. Any one interested ?? Price Rs 600 per Sqft. contact EMKALR@gmail.com
Ms bakshi, we have been waiting for ur responce for the following
“Time: August 18, 2008, 9:02 am
Hi Mr Baksi
Thanks for the note.
But, Hirco has been claiming the same for the High rise buildings, for the past 18 Months. Could you please confirm , UPTO WHAT FLOOR LEVEL HAVE you got the APPROVALS -PLEASE?
Also, as regards to “We are in the process of finalizing our agreements”- Has been heard for long time……..; Also, it has been postponed for quite a few times aswell. We all have been repeatedly “? Reassured ?!!!” regarding this without no actual dates for the past 12 Months.COULD YOU PLEASE confirm the dates for the same?………”
No Responce regarding the dates …………..
Also, We note that rather than clarifying the querries, U are using THIS ASWELL AS other medias (Forums) for promoting your HPG…
This Blog is for the customers of HPG and others to discuss the issues and not for PROMOTING THE SALES OF HPG.
IF YOU DONT MIND ME SAYING SO…………
Also You have mentioned that
” we can provide you with a current version of these agreements”
Is it possible to send one through e mail?
Customer service has stopped replying to emails. They have not answered 3 emails from me over the past 1 week regarding the sale agreement. I am going ahead and cancelling my booking.
I have an appartment at Windsor. I had a reply from customer services claiming
“We wish to inform you that we are in the process of finalizing our agreements and we will keep you updated as and when we are ready to execute the same.
We have received approvals till the third slab level for the entire project. It is an industry norm where Government authorities approve high rise buildings in phases and the next set of approvals is expected by Oct ’08.
Expected construction schedule for your apartment is as follows :
Ø Plinth completion – January, 2009 ( Approx date) .
Ø Slabs – Between Mar 2009 and July 2010 ( Approx date) .
Ø Possession – Nov, 2010 (Approx date) .”
HPG has price reduced to Rs 3050/sqft to motivate more sales
Th reduction of price by HPG is rubbish. Some brokers are misguiding you. The price is Rs 3425 to Rs 3475 for high rise and Rs 3500 for low rise.
Jyoti, I am not a broker. This is the information I receievd from AXIOM ESTATES, London. They quoted the price as Rs 3050/- Please check with Axiom Estates.
Mr Realm
Is it a resale or price from Hirco? As Hirco is denying the statement?
It will be great for a new investor, but bad for excisting…
But, I understand Hirco dosent allow similar low second hand sales?
It is not second sales. But sales through Axiom estates
I booked a flat in G + 3 last year. I went purely by the Hiranandani name.
The lack of transparency as brought out in this forum is really worrying. When i booked the flat, i was told that the price was high because construction quality will be world class. I was told that the flooring will be Italian Marble and bathroom accessories will all be Jaguar brand. REcently i learnt that the flooring will be “Compressed Marble” – have never heard about it and dont know whether it is superior/inferior to Italian Marble. Moreover, in one of the documents available at the site, bathroom accessories is specified as “Parryware” or equivalent!!!
I am really worried about my investment.
Mr Anand
I am one of the investors.
I wont be too much be put off with the speculations.
The location is good. Sit on it……….
It will reap u good results in Long run………..
Why does the palacegarden website send a TROJAN when anyone wants to open website. Whenever one tries to see the material the Antivirus software detects this and blocks the site
Come September … Go August 2008, 2007………..
No news yet regarding approvals???
18 months Big Silence for WORLD PEACE
To all HPG neighbours,
Enquiry made to Customer Service about the High Rise
Response received From Shilpa Sharma:
Construction is in progress for the high rise buildings. We will revert to you shortly with an updated construction schedule.
See today The Hindu for a Half Page ad, Shows things have started to roll on.
Hi HPG investors
The foll. news appeared on 3rd Sept. Chennaionline page which says that as Chennai city’s populations and development grows so fast and high, the master plan has been redesigned to enable high rise buildings upto 100 floors i.e. there is a saturation for growing horizontal, so vertial development is approved removing the earlier slab. The Govt. has also increased the FSI has been increased from 1.5 to 3.5 times for non-multi storey apartments.
I posted this message immediately in the web, but to my surprise it didnt appear. So took the copy from my saved file and resending it. May be this is the reason, why Hirco was silent, and some activity has been started for high rise…..
NOW I WONDER, IS THE WAIT STILL WORTH ITS PRICE?
2-??? ??????? ?????? ????????
Add This | Recommend | RSS | Font Problem? A A
Ms.Shanthisubra, I think you have pasted tamil font article, that is the reason it is not displayed.
But you have added the web address of chennai online in the write a comment, this has enabled to have a hyperlink on your name.
I have read the news by clicking on your name.
But in the end why have you written as
NOW I WONDER, IS THE WAIT STILL WORTH ITS PRICE?
Dear Prabhakar
Thanks for your query and comments. Yes, the fonts are in tamil, there was no option to change the language in the chennaionline web site. Thanks that the hyperlink provided helped you to read the message.
M/w, I ended my msg with a statement “Is……………. price”. The wait has increased the burden in the pockets of investors. All the prices of raw materials have gone up, meaning the excess will be compensated either with the possibility of quality of construction coming down (as mentioned by Mr. Ananth on 27th August above) or by increasing the additional fixtures’ cost. But the real estate / property market is coming down and price has not increased for the property……… if I am right.
So I look forward to hear from you and all other investors of HPG on the present market value considering that demand for software companies’ business is coming down and the distance from the city.
Your anxiety is true as an investor, hope you are a investor.
But as far as Hirco I don’t think they will compromise on quality. They have started this company and listed in UK stock market (correct me if I am wrong). The project is designed by Hafeez contractor (one of the best designer in India), and it is planned by HOK (one of the best project planner internationally), you can google it and vist both the sites and know the projects they have done. The construction contract is given to L&T.
And If you had seen the Hiranandani projects in Bombay you will remove this doubt.
For Hirco this is the first project I am sure this is going to be a master piece to show case it for other projects, like right now on sale in Panvel. For Niranjan Hiranandani and his family (almost all his family members are directors in Hirco) this is a begining of a huge project of this size.
Let us hope for the best.
In between for 3 to 4 weeks, no one has bloged why?
Neighbours of HPG let’s share or blog out our views, so that one information shared to me by you and another information shared by me you to turns into two information, this way we come to know a lot, hope you all agree with me.
Thank you, signing off……………
Hi Prabhakar
Your comments definitely have a very positive impression on the project, which is very good. I am keen to know if you are one of HPG investors, or one of Hirco group members?
Yes I have invested in HPG Belchamp.
We are interested in booking a flat in HIRCO. But the comments on the blogs are apprehensive also equally encouraging. I s the customer service in HIRCO is very poor? I have enquired an official there with whome we are dealing and he says sale agreement is in final stage. Also regarding registration, they say that it would be possible only at the time of handing over. But by that time the UDS value may more. Also till registration there is no title on you for the amount invested? Is there policy right in this regard?
Also I was told that they have not sent any notice for payment of 20% as they have not finalised the sale agreement. which is true?
I am really interested in booking a flat there because it will be a good investment and also should evolve a good place to live in peacefully. But, these concerns are to be genuinely addressed by the HIRCO.
Yes. customer service is poor
20% is to be paid in 30 days only. nothing to do with sale agreement
I am buying 2 x 1 Bed apts in Longleat I @ 3250 base rate + 25RS per sq.ft per floor ? This investment is not good for short term…but I think its good for long term atleast till 2011 when its completed. Lets hope it pays back…
All I got was 40days instead of 30 to pay the 20%. But no room for any other negotiations.
Malik
I am surprised. The website claims that the current rate is 3475?Sq Ft.+ 25 Rs PF.
How did you get at this price?
Have they reduced their prices?
The project as it is good…….
But, The overall impression from MOST customers is that the CUSTOMER SERVICE from MUMBAI is extremly and horribly CRAP.
I am not sure whether the management is aware of this Customer service issue. Probablt they should be knowing this , But they are much focusing on the sale of the HPG rather than who have already registered it?????!!
Uday,
Well i dont think so…cos my brother booked it 6 weeks ago at 3250 (incl. floor rise) & i got it at 3800 all inc….& from what i got 1bed are selling out very fast even in phase 2…So far in UK they are good lets see if they change colours now…but to be honest with you its the same in dubai..not great after sales service….but for those who are complaining about sales contract my brother got them from chennai already…
Ms Jyothi
Any comments on Mr Malik………
Why double standard rates in the prices?
The rate ranges from Rs 3425/- to Rs 3475/- per sq. ft. for different high rise buildings and it is Rs 3500/- per sq. ft. for low rise. Floor rise is Rs 25/- per sq. ft. per floor
Hi,
What do you think are the rental opportunities in HPG, if you book 3BKH flat.
Hi Everybody..
Returning to this place after a long time and of course i can understand the curiosity friends have on this blog. If giving a clean view or honest view on Hiranandani and experiences of Powai or Thane means you are hands in glove with Hiranandani is childish.
Meanwhile all i can further state is that the investment of 2500 per sqft to 3500 per sqft in Hiranandani or anyother top builders in not a loss at all, considering the rising construction cost. The amenities available in Hiranandani are great.It will be difficult to explain, but am sure a major percentage of friends who have booked in Hiranandani Palace Gardens chennai could be who have lost the oppurtunity to become 4 crore patis in Mumbai.As i told you earlier in my posts, the guys who became superrich in powai were all middle class people, The rich never came to powai when it started of. Nobody wanted to go to powai.
But after the building proped up, the amenities, the class and quality of construction,..everything changed…suddenly.If you are going to look for this blog to change your mindset it would be not so good idea. Take a trip to powai or thane..and see for yourself.
Check who lives out there, the price, and how you would wish you had a Hiranandani apartment in Powai.
Lots of south indians became super super rich in powai, tamilians, malayalees, who went on to buy 4 apartment just with one flat of Hiranandani…
Meanwhile it luck too..to become super super rich..but at the same time..you are not going to poor..nor is your money going anywhere..its a great investment at the current rate..no loss at all.
Regarding the school, no point in checking …from your side..its the best infrastructure needed for a school, the ambience will be there..rest is later…Teachers ..i mean good teachers etc…
If you miss the chance in chennai…you will be like me…who had to rush to chennai..from mumbai..who knows..I MIGHT JOIN YOU ALL IN THE SUPER SUPER RICH CLUB in chennai..palace gardens..
Take the oppurtunity now..if price rises , even to 5000 per sqft it will be difficult getting in..You can only come as a visitor to hiranandani then as millions of people do in mumbai..they come to see hiranandani powai..everyday..and powai is going to improve further..in another five years..the plan is to make it like marine drive..churgate..seaface..
Hiranandani will not come to chennai …just like that from mumbai..of course the plan will be on higher scale than the prievious projects..
So come on in..book a flat..
Dont worry i am not a agent…you can check with hiranandani..
I have booked an apartment ..thats all..
Take care,
Take care..
Philip Thomas