The Classe Reviews

Not so long ago, a CFO of a very famous TV channel called me for a simple favor. He wanted to buy space in an under-construction commercial mall in Hyd. Some of his friends have invested in the project and were promised a pretty good return for their investment (if I recollect correctly, it was around 10-12%). He called me to check if I can get any discount on the price and to see if he can get a better unit allotment. I told him the mall will never get completed and it is better he invests elsewhere. Like a typical media guy, his ego got hurt, he thought he knew better and went ahead and invested in that project. It has been 5 years since, the project didn't even move a step ahead. Not even a single basement was constructed so far! After 5 years, all he has is a hole in his pocket! He is not an exception. Across the country, hundreds of working professionals have invested in under construction commercial projects which only exist in brochures and never see completion. If you look at the typical real estate portals and even reddit subs, there are a lot of posts by agents advertising these projects. And most of the time, these projects never see completion. Even if they are completed, the delay is so huge that the return on investment never makes sense. This episode explores how people are being cheated in the name of Pre-leased Commercial buildings. The Bait: The bait for the usual buyers is very simple, invest a low amount (sometimes even as low as 10 lakhs), get an assured return from Day 1! The assured return is always higher than that of Bank FD, going as high as 12% in some cases. For a typical buyer, this is a crazy offer. He can have the benefit of assured rental and also property price appreciation. No one wonders, if it is too good to be true, is it really true or just another marketing scam. The Marketing Story: To understand the scam, you need to understand why these developers come to you in the first place - because no one else will give them money! Developers need funds for 2 purposes - tying up the land and construction related. If the developer has decent background, he will be able to take a loan from banks for construction. He should also be able to tie up the land on Joint development. However, if the developer doesn't have any credentials, the land owner will not be giving it on JD and would rather offer it only on sale. Even the Banks will not lend him money towards construction. He won't be able to raise money from HNIs as well, so these guys will go to the easiest target - the middle class with disposable income. They sell a sweet story of second income source in the form of rental income. How once completed, the commercial building will be leased to an MNC who will pay rents on time. They will even say that they are in advance discussions with few clients for lease. Sometimes, to sweeten the deal, they will promise to pay the rent till the completion. They seek smaller investments, as low as 10 Lakhs, promise higher returns. The Scam: Most of the cases, the building will never see the light of the day. As the sales are for smaller amounts, the developers will not even be able to collect sufficient funds for approvals. The developers simply run away after paying rent for few months. Then the buyers are stuck with nothing but a paper which has no value. I know of buildings which are still under construction after 7+ years. If you are lucky and they are able to collect enough money to construct, they will complete construction and try to find tenants. No MNC will lease a strata-sold building — one where 100 different people own 100 different units. Corporate tenants need a single point of authority for lease agreements, maintenance decisions, and access control. When ownership is fragmented across dozens of individuals, any one dispute can hold up the entire lease. Corporates know this. They blacklist these buildings. As no MNC will come forward, they will try and lease it to smaller tenants, and wash off their hands. The tenants will vacate soon and these buyers will now be in the market hoping someone will come and take it on lease. There is a building in a prime location of Kukatpally (near Lulu Mall) which has been mostly vacant for most of its life! Atleast here, the building is completed. Reasons for failure: The developers usually are new and have no clue on how to develop and what to develop. Commercial buildings are not just boxes, there is a lot that goes into the design and planning. Some of them are stuck in legal cases (they buy litigated land hoping they could clear the title), some else in construction (they will never have enough money to complete the project). No Credit. As these developers are new, no supplier would give credit to them. These guys have to follow cash and carry for the materials, which further would pressurize their cash flow situation. They will always be under cash crunch. Broker margins. The marketing agents charge high for these projects. I heard as high as 10% in few cases. Greed. I have observed that these new developers always tend to divert cash to tie up other projects. And they always screw up both the projects as they won't have enough money to complete any one of them. Takeaways of the story: To the customers: Before you invest in any pre-leased commercial property, ask these questions: Show me your last completed commercial project. (Not residential — commercial.) Why are you raising money from retail buyers instead of a bank loan or HNI funding? Is the lease agreement with the tenant signed and registered, or just "in discussion"? How long will you pay us rent if the tenant vacates or if you can't find a tenant? (agreements can be for a longer period, but the obligation of the developer will expire once the lock-in period ends. Find out how long the lock-in period is.) To the agents: Your commissions on these deals won’t be worth the phone calls you will receive forever. When the customers lose money, you will be the first guy they will come after. Have you or anyone you know invested in such projects? Do share your experience so far. Also sharing the links to the previous posts in the comments.

Beautiful property nestled in a cozy location.

I’m currently looking for a 4BHK in Hyderabad for end use and would appreciate inputs from those familiar with this segment. Requirements: Budget around ₹4.5 Cr (prefer not to stretch much beyond this) Minimum 3000+ sft (In areas around financian district, kokapet, narsingi , puppalguda and surrounding only due to vicinity to work) East or West facing only High-rise, preferably higher floors Completion acceptable till late 2028 / early 2029 Strictly 4 bedrooms (not interested in home theatre layouts) Below are the projects I’ve visited and my notes: SMR Vinay Iconia – 4BHKs available in Everest Tower. Forest-facing units. Quoted ~₹10,700/sft all-inclusive at OTP. Layouts not ideal. Pricing higher than nearby Aurobindo projects offering similar views and facilities. Vasavi Atlantis – High density. Mixed unit inventory. Graveyard adjacent. Not considering further. Vamsiram Niche (Shaikpet) – ~₹11,000/sft. Single tower, 8 flats per floor. Layouts are good. Graveyard nearby. Pricing feels high for the locality. Srias IWA – Layout and location are good. Still assessing feedback on execution and delivery. DSR Classe – ~₹10,500/sft all-inclusive (landlord units). Layouts are good. Currently my primary option. DSR Valar – Strong location and design. Lake-view units sold out. Road-facing units (33+ floors) take total cost to ~₹4.8 Cr+, which is above my comfort range. My Home Apas – Larger configurations are mostly 3BHK + home theatre. Prefer a proper 4-bedroom layout. Lansum Elena / Encanto – Appear solid, but not fully confident about timelines aligning with my requirements. Moonglade (Narsingi) – Competitive pricing. Concerns about density and ORR-side flooding during heavy rains. Sumadhura Olympus – Quoting ₹13,000+/sft. Higher than other comparable options. Myscape – Songs of the Sun – Only select higher-floor units are strong. Floor-rise and additional costs increase overall pricing relative to completion stage. NCC Urban One* - they're selling at all incl OTP rates as well ,but I feel their layout is quite different and the costs rn compared to when I initially inquired about the project are lesser ,do lmk if there's some feedback about the value of this project. Pease do suggest: 1.Other high-rise 4BHK options in the ₹4–4.5 Cr bracket that fit these criteria. 2, feedback on DSR Classe,srias iwa and Valar Any practical inputs would help. Househunting here has been overwhelming considering how inflationary these prices have come for decent end use apartments.

Good quality construction at an amazing location.

The CLASSE location and project plan are well conceived. One of the best projects in the city by DSR group.

https://timesofindia.indiatimes.com/city/hyderabad/any-form-of-solicitation-for-unregistered-project-is-illegal-says-d-srinivas-reddy-secretary-of-telangana-rera/articleshow/128409331.cms#

Very very bad behaviour of security staff near the gate, didn't even get a chance to go to sales office.

The areas that seem very promising to me right now are: - Tukkuguda- Raviryal- Lemoor- Mankhal- Maheswaram But how do you think the ultra‑luxury projects in Mamidipally will perform? It still feels quite remote today. Oh, and I also think Satamrai looks like a great location, especially considering its proximity to the new High Court. I was just told that a mutual friend is launching a project with 1,000 square yards per villa, and about 11k - 12k square feet built‑up area. The price pre‑launch is reportedly around ₹12–14 crore per villa. When I asked how it could possibly go from there, and what the final cost would be once the project is completed, he said it would be launched at ₹16,000 per square foot and by the time of handover it would be ₹22,000–24,000 per square foot. I just can’t even process that kind of price per square foot; it feels insane. However, I don’t think everything he’s projecting will actually happen, and I believe they’ll struggle to sell this particular project, no matter how many marketing gimmicks they use. Now, coming to Mokila and Shankarpally: I’ve heard that there are a few projects in Mokila offering half‑acre and one‑acre plots, with some developers even doing built‑to‑suit options within a defined square‑foot range. I think this is brilliant because people paying such huge premiums won’t want every villa to look the same. This pocket seems like the next logical place where all the ultra‑rich Telugu families and especially joint families will want to move. On the other hand, the upper‑middle class will likely move into the Tukkuguda vicinity if they’re going for villas, and to Neopolis or Kokapet if they’re opting for apartments. The uber‑rich will probably gravitate toward Mokila for villas, while for apartments, there are already too many options and, in that category, there doesn’t seem to be much scope for strong asset‑value appreciation. Below is a gpt analysis of the above word vomit of mine - Mamidipally: remote now, but not “stuck” foreverMamidipally is still perceived as “far” because it’s south of Shamshabad, off the ORR, and largely plotted/luxury‑villa driven. • Connectivity: It’s closer to the airport (~8–10 km) and has ORR access, which is what large‑scale villa projects are banking on • Ultra‑luxury runs: There are already 300–550 sq.yd plots with 4–5 BHK triplex villas targeting HNIs and NRI money, with built‑ups in the 4,000–18,000 sq.ft range and prices starting from mid‑Crores to 8–10 Cr+ per villa. So, yes, it seems “super remote” today, but the entire south‑Hyderabad airport‑belt logic is that long‑distance comfort is offset by low density, privacy, and low‑tax land. If ORR‑linked corridors like Tukkuguda, Adibatla, and Mankhal keep heating up, Mamidipally will keep getting pulled in as a “peripheral‑premium” pocket. Satamrai and the new High Court playThe new High Court is coming up in Rajendranagar, which is not Satamrai, but they’re in the same general south‑west belt. • A 100‑acre HC complex means government housing, staff residences, and support infrastructure will grow around Rajendranagar over the next 5–8 years. • Satamrai sits as a “semi‑premium” entry point into that ecosystem: it’s close enough to benefit from the HC‑related demand but still has relatively cheaper land and clearer development scope than older, choked pockets like Secunderabad or old city. So in your framing:• Premium villas → Tukkuguda / Mankhal / Maheswaram side. • Strategic legal‑hub‑adjacent play → Rajendranagar‑Satamrai‑Vijayawada‑Orangegarden corridor for apartments and mid‑high‑end plotted. How do they quote 16k–24k psf for a 1,000‑sq‑yd villa? Let’s de‑mystify the numbers on that 1,000 sq.yd, 11k-12k sq.ft, 12–14 Cr pre‑launch, 16k–24k psf “by handover” project. First, reconcile the magnitudes:• 12–14 Cr pre‑launch implies ~1,050–1,230 psf at the initial stage. • 16k psf at launch on 11,400 sq.ft = ~18.24 Cr. • 22k–24k psf at handover = ~25–27.36 Cr for the same built‑up. This trajectory is not unusual in the “ultra‑luxury plotted” segment, but it’s extremely aggressive and highly dependent on: Location cherry‑picking If it’s carved out of a “break‑away” micro‑location (e.g., Mokila, premium Tukkuguda edge, or a gated‑only enclave off ORR), promoters position it as “land‑only‑buyers” + “lifestyle‑only” people with no comparables. Psychographics of HNIs and NRIs Inflation + construction + scarce land Sharply rising expectations for “amenity‑rich” gated communities. But your skepticism is healthy: The project is in a true scarcity zone (Mokila, premium Tukkuguda edges, or a new “PR‑created” enclave). The target buyer is not comparing with mass‑market ORR apartments, but with other ultra‑luxury villas and estates. If the project is in a generic‑looking area with no real differentiation, sales will lag, and they’ll quietly discount or renegotiate psf once the market map gets clearer. Mokila & Shankarpally: the next ultra‑rich hub?This is probably the most solid call in your entire thesis.• Mokila‑Shankarpally is already a “villa‑only” narrative:• There are fully gated communities with 99 premium villas, 4–5 BHK designs, and projects sized around 9–20+ acres, explicitly targeting HNIs and NRIs.• 1‑acre and half‑acre plots are openly traded at 20–25 Cr per acre, which implies that land here is already being priced as ultra‑premium plotted, not mass‑market.• Why your instinct is right:• Ultra‑rich Telugu families and joint families don’t just want size; they want:• Privacy (no dense apartments staring into their compound).• Plot size flexibility (built‑to‑suit, different layouts).• Space to entertain, host events, and have “compound‑life”.• Mokila‑Shankarpally, together with parts of Tukkuguda, Maheswaram, and Mamidipally, is becoming the primary catchment for these buyers who are willing to pay a huge land premium and accept longer commute distances.

Can anyone suggest which new/recently launch project I should invest. typical salaried class self-end use bigger size 3bhk/2000 sqft good connectivity with Hitech City area (45 mints drive in office hours) Grade 1 builder as it’s a end use budget around 7k per sqft Checked out DSR altitude last week found the size good. Area decent. Vasavi Atlantis has good location. Pristina did not like due to location.

Not great....They say this as premium apartments & quote higher prices but not at all worth. Take decisions wisely and many quality, good & reputed constructions are available in this area. Take the reviews of people already residing in their past projects(Bang & Hyd), then you will know better about their construction quality.

not at all "premium" , frequent power and water cuts and high costs, basic facilities and clubhouse, power cuts are irritating, worst community, how can this even be a premium community, doens't even deserve a star, power cuts every 5 minutes, frequently water is stopped, maintenance fees should be 0

Facilities are nice.. Apartments are Costly.. Maintanence is nice