Review : Investment in Plaza-106, Sector 106, Gurugram, Loss of Profit

Project Review: The Plaza-106, is situated in the sector 106 Gurugram/Gurgaon, close to the village Daulatabad. This project is under developing by the Viridian Red Group. Its mix land uses commercial property. This project Consist of commercial retail shops and furnished studio apartments/Condominiums.

Possession | Construction Update
This is probably the most uncertain query of the entire project. The Plaza-106 project is under construction. The project construction started in the year 2012. The promised date of delivery/possession was in the year of January-2015. But the project is still under construction and the possession is undefined, uncertain. However, as of now, the project construction has been moving at a snail’s pace with more work to be done. And to see the slow construction of the Plaza-106, it will hardly complete. This project can be delayed for a couple of more years (or even more).

plaza 106, sector 106, gurugram

As per Location
The Plaza-106 project is not exactly on the Dwarka Expressway. It is facing towards the Village Daulatabad.
The Plaza-106 project is in the front of a cremation ground. At present, there is no public transport facility for this project. The Plaza 106, is not properly visible and walkable from the Dwarka Expressway. So we can say that the location of the Plaza-106 is not impressive.

Drawbacks | Bad Factors
The Viridian Red Group builder has the extremely poor record of completing their real estate projects in the set time frame, not even a single real estate project in the Delhi-NCR is completed till date or in set time frame.

The entire New Gurgaon (Dwarka Expressway Sectors) is unplanned. Somewhere villages and somewhere unauthorized colonies and next to it is the group housing projects or commercial projects. The Plaza-106 is the perfect example of this shit. It seems very crappy. The Dwarka Expressway sectors are full of encroachment. The development of Dwarka Expressway will take more than 7-10 years or even more.

As we analyze that there are almost no development activities or very slow development in the entire Dwarka Expressway sectors (New Gurgaon). The development planning’s of the state government has also been moving at a snail’s pace.

The Dwarka Expressway (New Gurgaon) township has been under construction/development since last 08 years, nobody knows when it will be complete.

These days the developer of the Plaza-106, offering many attractive schemes to customers to invest in this property, like the 11% assured return, lease guaranty, and other greedy payment plans.

Basically, the assured return is nothing, the real estate developers sell their low money property at a very higher price and return your hard earned money in the name of the assured return & monthly rent to you in the form of EMI. Actually, they are making you fool.

The bank guarantee on the assured return is offered against the public deposit and that is for one year only. The developer has no stake to lose. It’s on his wish whether to complete or not or complete early or late depending on the profit and demand.

Actually, at present the sector 106, Gurugram is low-density population area, and low density is good for the living but not for commercial.

The construction and possession of this kind of project depend on the sale of shops/space/Condominiums, so the project may be the delay.

Advantages | Good Factors
That The ground floor retail commercial shops of the Plaza-106 are properly visible, so the investment in the ground floor main road facing shops can give good returns.

Key Point
It is probably not the right choice of investment for those who are looking for ROI in the next year or so. Given the doubts surrounding the possession date, there may not be a real appreciation of value for resale in a year. In fact, investors who are trying to make a sale of their property in the Plaza-106 are now struggling to reach their initial investment. Despite having brought their prices down, there aren’t any takers to buy these properties.

Advice
The drawback here though is the fact that the construction has completely slowed down. With a possession date set in another year’s time, the project has a long way to go for completion. It seems to have already outlived its past expectancy date of completion which has caused a lot of worry in the minds of investors.

The project has been re-launched several times already with new completion target dates and yet there has been no significant progress. There is not much help from the GMDA (Gurugram Metropolitan Development authority) as well on this issue. The investors who have their money into the project are already trying to sell their property and recover their capital. It has been a cumbersome experience for investors who deal with soft launch projects along Gurgaon or any other location along Delhi NCR. So at present stage investment in the Plaza-106 project is very risky.

Price | Lease Price
At present, the Plaza-106 retail commercial shops prices start at INR Rs 08K- per sq ft to INR Rs 10K per sq ft, depends on the floor and location plus other charges. The Studio Apartments/office space/Condominiums price is INR Rs 06K per sq ft plus other charges.
The price slightly high for investment in this location.

These days the developer of the Plaza-106, offering many attractive schemes to customers to invest in this property, like the 11% assured return and other greedy payment plans.

That builder/project who offers this kind of investment offers is not in the category of secure investment, as our experience most assured return properties are the investment of loss.

Conclusion
The property investment is a huge step and it involves a lot of money. It is therefore important that you review the pros and cons and weigh them before reaching a decision.
After analyzing all above facts that the investments in the Plaza-106 will take more than 07 years to grow (or even more). Overall The Plaza-106 Commercial project investments will take very long time to grow so invest carefully.

CPR Ratings *