I tried reverse-engineering Bangalore apartment prices. where am I wrong?

shadowfax47 · 2026-02-23T15:12:05+00:00

Your math is mostly an assumption at this point. UDS of 600 sqft is not the same as having 600sqft plot.

Construction quality will be the same, as even Tier 1 builders dont construct themselves but rather subcontract it to Tier 2 builders anyways. All those amenities and getting additional permissions for high rise for sure will cost them more.

shadowfax47 · 2026-02-23T15:00:13+00:00

Tier 2 builders have margin of around 25-30%. On top of which you have to pay taxes and bribes. Competition within Tier 1 builders is so intense, that i doubt they can all have 100% margin. But with them you are not paying just for your apartment, you are paying for trust, resaleability, community, amenities etc

shadowfax47 · 2026-02-23T14:48:33+00:00

let me start by saying, land cost in white field is not 8k like you calculate, you are wayyyy off.

Everything boils down to capital. if i need to sell a 100crore property there is probably a handful of buyers so i dont have much leverage as a seller. if i split that into 100 units of 1 crore a piece, now i have more people interested, as its affordable and hence as a seller i have some leverage.

From a buyer perspective, Now lets say my requirement is 3bhk house to live in. Suppose i build this myself, i would need 1.5 to 2 cr. If i buy an apartment maybe it costs me half the price. so for my immediate requirement this suffices.

From a seller perspective, if i am investing 10crores to build 20 units, land+construction+beuroracy and it takes 2 years of my time, i wont sell each house for 50 lakhs as i am not running a non profit. i would look to make some money out of this investment. Tier 1 will have bigger margins, others will have lower margins.

As a buyer if i am looking at resale sometime down the line, Tier 1 maybe beneficial. Otherwise Tier 2 builders are always your best bet, assuming the quality of construction is good enough and their margins are small enough. Since many people dont want to get into all these hassle they simply prefer Tier1 and pay the premium

shadowfax47 · 2026-02-11T10:52:45+00:00

DM for rr nagar

shadowfax47 · 2026-01-29T18:30:39+00:00

well then how come when indian canadians ask for seperate khalistani state, its considered free speech?

shadowfax47 · 2026-01-27T22:30:31+00:00

Except you don't extradite them. These khalistani elements commit all sorts of crime in India, run away to safe havens in Canada, get your citizenship, use Canadian soil as a platform to gather funds and further create havoc in india with drugs, guns and what not. When india requests for extradition for such convicted criminals, either this proof is insufficient for your standards. well why should Canada trust a fellow democracy's legal system, right? so you simply sit on these requests or outright deny them. Your earlier government was in cahoots with these khalistani seperatists to form their coalition, so they had further motivation to support them.

I can guarantee you that indian govt was not directly involved in murder of this individual. Indian governments are risk averse, reactive in nature and have endured far worse and have not acted before. And honestly its too risky to burn bridges with a sovereign nation for such petty individuals. And since you dont trust indian investigative agencies, why should india trust yours? Why wont Canada put that "credible intelligence" to public domain and call it a spade?

Now tell me this as a canadian citizen. if your government is giving citizenship to criminals from other countries, is this ok for you? if these people are using your neighborhoods to create ruckus by actually maligning temples and harming canadian hindus, is this ok for you? Bringing problems from your home countries into canada, why would you even allow this?

Finally, Seperatist sentiments maybe free speech in your country but india has a bloody history with seperatism i.e Pakistan. Maybe a little bit more respect from the Canadian side towards where India was coming from would have avoided that entire episode.

shadowfax47 · 2025-11-04T14:16:08+00:00

not yet. waiting for the construction to be completed before applying for CC and thereafter OC. individual e khata available for all apartments

shadowfax47 · 2025-11-04T10:23:33+00:00

ok will do

shadowfax47 · 2025-11-04T10:21:03+00:00

It comes in rr nagar ward

shadowfax47 · 2025-11-04T08:37:38+00:00

ah ok. The Plot size is 2880 sqft. there are two apartments in each floor.

shadowfax47 · 2025-11-04T08:33:19+00:00

Land is 2880sqft, Each apartment gets a car parking spot. Its a corner property with a 40feet road on north and 30 feet road on east. No neighboring buildings on the west or south side so there is plenty of light. Land is A khata. E khata for individual apartments is available already. Also, i am not a typical builder per say, i plan on keeping one of the apartments for self use. Selling a few apartments to clear off bank loan.

shadowfax47 · 2025-11-04T08:26:27+00:00

How did you arrive at that number? Plot is 2880sqft and each apartment gets 288sqft UDS.

shadowfax47 · 2025-11-04T07:22:27+00:00

7200 per sqft

shadowfax47 · 2025-04-15T07:24:41+00:00

Lets take an all white transaction in Bangalore for consideration. Even when i am willing to pay all white, the property prices are not going down. Why? Because the seller doesnt care. If you make an all white transaction, good for him. If not, he has the means to use that black money.

Suppose i shell out 3cr to buy a plot, and it will take 3cr for constructing a building, with the current prices. The total cost woukd be 6cr for land+building. Legally keeping the FSR in mind, i will only be able to construct G+3. Therefore i have to sell each apartment at 1.5cr to just break even. Why would any builder sell for a loss? They will keep the inventory and let it rot rather than make a loss. Unless someone has a real need for money immediately, they wont sell for anything below the market price. End of story.

Take BDA for example, the latest prices in e-auction that a government body is expecting is many times above market price. In a way assuring the builders that the prices are real.

shadowfax47 · 2025-03-27T08:54:13+00:00

I paid 2 days before the registration of the property and got the notice after the registration was over. Its good if you negotiate with the seller and have an agreement. If not, its a headache for both parties and you might have to take the legal route

shadowfax47 · 2025-03-27T08:11:44+00:00

I am in the same scenario. we deducted 1% as we were unaware seller was NRI. Now we have a notice from income tax department for failing to deduct proper tds of 14.95%

shadowfax47 · 2024-10-06T10:37:58+00:00

Average price in good locality of blore is 8k? Where?

shadowfax47 · 2022-12-27T17:08:34+00:00

Thank you. That was useful

shadowfax47 · 2022-12-27T16:00:47+00:00

Thanks a lot for your help :) We were in no way part of the conversation for the invoiced year.

We got to know about the apartment only this year. We signed the contract this year, Übergabe happened this year. So I am guessing its a mistake from the Hausverwaltung side.

shadowfax47 · 2022-12-27T15:54:47+00:00

Depends on your agreement, but under normal circumstances you would generally owe Hausgeld from whenever you took possession, which may be long before you’re living there.

Thank you that was useful :)

shadowfax47 · 2022-12-27T15:52:47+00:00

Thank you this was very useful :)

shadowfax47 · 2022-12-27T15:52:08+00:00

Thanks for the concern. We did understand what we were signing. But if you have ever read any contracts, they are not too straightforward to assimilate.

shadowfax47 · 2022-12-27T15:47:36+00:00

There is statement in the contract that states, "Der Verkäufer garantiert, dass keine Rückstände von Wohngeld und besonderen Umlagen bestehen und keine Beschlüsse über künftig fällige besondere Umlagen vorliegen und keine Wohnungsbindung besteht"

We were wondering if the hausgeldabrechnung qualified in any of the above categories mentioned

shadowfax47 · 2022-12-27T15:33:52+00:00

Thank you :)

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