A  Value  Far  Exceeding  the  Price

Currently Underpriced : Spurthi gives a value far exceeding it's price. In other words, Spurthi prices are cheap, it should have been much higher than what it's now. It's underpriced and hence is probably the best option in Brookfields to buy. Let me explain why.

Inherent Vs Market Price : For anything in the market, there is an inherent price as well as the market price. This is how all markets operate, be it the commodity market or stock market or real estate market. When the inherent price exceeds the market price, whatever is the excess becomes profit for the buyer. It's only a matter of time when the market price catches up with the inherent price. There are many factors which make this catch up faster of which marketing efforts, which makes the market aware of the difference, is the most important. You may recall brokerage firms running detailed analysis of company stocks to finally suggest buy or sell. Spurthi being an already sold out apartment, there is no marketing efforts at all. On the other hand, real estate companies through their marketing efforts, keep the market price higher than the inherent price for their new projects.

Inherent Price Calculation : Now let's see how the inherent price is calculated based on land value (stable) and rental income(changing). The land prices in the area around Spurthi is between 25 to 35 K. Land prices take a relatively longer time in comparison with the built-up area price or the rent on a sqft basis to change; either increase or decrease. With an undivided share of the land (UDS value) of 697 and a built-up area of 1362 sqft, the price of the apartment can be assessed at more than 2.1 Cr  ( average).  Similarly the price can be assessed at more than 2 Cr based on rent.( And the rent is fast increasing) every year. In spite of all these calculations, Brookfields is poised for a rapid growth following the division of BBMP into 7 corporations. . So let's fix the inherent price of the apartment at around 2 Cr while the price I am requesting is only 1.65 Cr (negotiable). Also the property in question is well maintained and in excellent condition. The buyer is set to realize a profit of more than 35 lakhs, in the near future, assuming stable conditions. In the light of favourable conditions like BBMP division, the profit can be still more.

Best Buy : All the above factors make Spurthi an excellent choice from the investment or usage point of view. The prices are set to go high in the near future, the clear indication of which is the price quoted by builders in nearby areas of Brookfields for their new projects. Though we are not giving any  pointers to the new projects in the nearby areas or even remoter areas where land is really cheap; the information can easily be accessed through the internet. So get the information, do the analysis and be convinced for yourself about the value of the Spurthi complex. Spurthi has a definite advantage in terms of UDS over probably all the comparable apartments in Brookefields. Also Spurthi is free of any legal hassles as faced by some other apartments in Brookefields.

Expected Price : On the basis of the above analysis, my expectation is 1.65 Cr (Negotiable).  Spurthi units continue to be lower priced probably because of the lack of marketing efforts to make the market price catch up with the inherent price.