Here are some things that you must know about the Orange Properties offer at Devanahalli:
1. The proposed location of the property is off all main highways and is in fact further away from the Intl Airport. Guess where that puts you in terms of commute time to the city! The location does not fall within 48 kms of the city center making it out of purview of even the Bangalore Master Plan 2015... you will have to wait till 2020 (with Abdul Kalam's vision!) for some proper infrastructure around the place.
2. There are only TWO (!!!) villas priced at about 69 lks in the entire project that is on offer - that too without including the VAT and club-house charges that must be paid for. Of course, you have to bear the registration costs as well! The other villas are priced anywhere between 70 lakhs to 1.1 crore without the other additional costs of course. Psst... the 69 lakh villa comes on a 997-sft parcel of land - hardly any place for what I would term a "villa". And yes, its only a 1500 sft "Villa" - just a tad bit bigger than your standard three bedroom apartment in the city. I also note a sudden disappearance of the D category villa priced at over 1.6 crores which I am sure was there when I visited the website the first time round! Wonder what happened to that! ;) Curiously, the number of smaller villas has gone up to 195!
3. There are supposedly 800 apartments and 195 villas in the project with one club-house! And, Eureka!, the company collects Rs. 5 lakhs from every villa buyer and 1 lakh from every apartment buyer for the same club's membership! That's a cool 17.75 crores for just the club-house facility that on closer inspection can be set up for less than one-sixth of the money collected (the land comes free, remember?!)
4. Lets look at another interesting aspect of the apartment offer - There is an offer of a rental of Rs.5000/- a month (for an as yet non-existent and unfinished apartment!!!) until completion - two yrs in timeline. Now, lets dissect, you pay 2 lakhs in booking amount and the company pays you 5000*24=1.2 lakhs over a period of two years! Wow - magic - you got rent!
5. Now - coming to the most interesting piece of them all! The Mercedes Benz! :) Another thing to keep in mind is that given that the company will book delivery of at least 20 vehicles at a shot, it is possible to get a discount of 40% on the cost - lets just say that the cost per car for the company is down to about 19 lakhs. Now, how does the company fund this whole thing? Some cool math below:
Given that the cheapest villa is what you buy (No. A-37), here is what you pay:
At Booking: 10 lks
Land Cost: 19.94 lks (at a massive Rs. 2000/sft for land that was probably acquired at less than Rs.400/sft - Foolhardy if it has been acquired at a price higher than that so far from the city!)
Construction Cost: 39 lks (Wow! At Rs.2600/sft for construction, this should qualify as the MOST expensive builder in town! Any good contractor worth his salt should be able to do a decent job for about 1200 a sft - all inclusive - Raw material prices are falling yet)
Development Cost: 9.97 lks (What was that again?? You are charged for the land, you are charged exorbitantly for the construction and then you pay for "Development" - Excuse me??! Most plot promoters in the city provide all "development" like compound walls, underground cabling and drainage as part of the plot's cost.)
Here is what a regular builder would charge - You would probably get the land for about Rs.600/sft (am willing to bet!), construct at 1200/sft, spend on approvals and other stuff like compound walls and motors at maybe 200/sft. Comes to 30 lks in all for the property. Leaves a good 39 lks for the freebies - "Mercedes BENZ" :) which is acquired at about 19 lks and 20 lks for the balance sheet and the ad campaign! Ah yes, you can get membership at any one of the multitude of clubs on the NH for a far lower price - I checked.
6. A look at the payment schedule, the company proposes to entirely fund the cost of construction of the complex (and the cars) out of booking and agreement amounts received! The booking amount is only adjusted on completion of the flooring, when you have already paid 80% of the total price!
There is little, if any, indication of the execution capabilities of Orange - they have branched out into multiple business lines solely on the strength of their marketing ability. Some who purchased furniture from the company's other venture have had to wait long for delivery and have been at the receiving end of goof-ups in the production, logistics and after-sales service departments. The problems with all the holidays that were booked (through another division) are only unraveling now.
Net-Net Orange is a group of clever marketers that dwells on the enormous hype it generates to attract customers who will be blinded enough not to read the fine print until later! The short time period of the offer (which I don't believe holds), the massive ad campaigns (running in crores!) and the attractive price points (that are not all encompassing with prices often higher than market for their "other" eh-options!) all point to a strong marketing team but speak nothing of the execution behind the promises made. Beware! :)
*Note: All data provided above has been taken from the Orange website, various newspapers and promotional material distributed by the company and a little bit of analysis by yours truly!