We would like to present our view point on the project “Coral Wood” as follows:

1. Re-position towers F and G: All end-users (even if we sell to investors, the capital
growth of any residential property depends mostly on its acceptability and appeal to
the end user) want exclusiveness in their homes.
There are broadly two ways to make any residential property exclusive –
First: to give the owner the chance to customise it. Customisation in itself is the desire
to be exclusive.
Second: to make it very lavish, more lavish than other flats.
Option 1: where the product shall be marketed focusing on CUSTOMISATION. The
bedrooms would have NO flooring, the bathrooms no fittings, the kitchen too would
come only with a sink. The walls would be only plastered and would not be finished.
We have felt that most flat owners want to do up the place to their liking, which
includes the flooring, the bathroom fittings, the kitchen etc. Why make them spend
twice?
Option 2: where the product is given fully loaded. Air cons, washing machine,
exclusive wood work and the works. Mention the brand/s of the Air-con, flooring,
kitchen etc. which would be installed.
2. Following from the above precept, the two towers need to re-branded too. Where they
need to be given a new name (for example, we may choose to call those Prestige
Towers). This will make these exclusive and shall be concomitant to the above
strategy of re-positioning.
3. For Option 1, because of the almost “bare” nature of the flat, we expect the price to
come down to between 5000 and 5150 psf for a construction linked plan and a
proportional correction in the price of the subvention plan
4. For Option 2, you may choose to charge a premium of 1200 psf, taking the price to
6200 to 6350 psf
5. The biggest advantage of the above lies in the consumer-psychology. Consumers, no
matter what they are buying, are MORE likely to say YES to a product if they are
offered options. Car manufacturers mark up top variants vis a vis the basic variant for
most models. A case in point is Eco Sport, where they marketed it as an SUV, which
starts at 6 lac (for the petrol engine), knowing it very well that most buyers would opt
for the more advanced Eco-boost or for the Diesel variants which start at 7.30 lacs.
But, the very fact that a prospective buyer is being offered options guarantees
purchase.
6. We need 5 months time to sell all these flats
7. We expect 6.75% commission
8. The other details might be elaborated in the detailed contract.

Regards,

Salil Kapoor – Chhabra and Associates