Godrej Frontier, Gurgaon

At current prices, despite brand pricing of Godrej, this project can be purchased for generating average returns in the long term.

POSITIVES

• Almost on time delivery
• Tolerable customer experience
• Acceptable build quality

CHALLENGES

• Appreciation has not been as expected
• Finishing leaves room for improvement
• Godrej could have been more open in information sharing with the buyers
The Carpet area to Super area ratio (‘Loading’ or ‘Efficiency’ in industry Jargon) could have been better

LEARNINGS

• With a financially sound and process oriented builder like Godrej, deliveries are made to buyers without much inconvenience
• However, a trade-off for investors buying into projects from such Ivy League or A-Lister developers is that they get charged a premium for the brand name, which drives down the potential to earn higher returns. For example, a similar project by a relatively unknown developer could have been purchased for INR 2,800-3,000 per sq ft (and with lower side additional charges), increasing the earning potential for an investor.

RECOMMENDATIONS

• Buy from an A-listed builder if you wish to avoid possible pain of delayed deliveries from lesser known builders. However, be prepared to pay a brand price for the safety associated thus.
• More active and savvy investors need to dig deeper and find hidden jewels for better returns.
• At current prices, despite brand pricing of Godrej, this project can be purchased for generating average returns in the long term.