a) All Major cities/Towns in India are converted to Concrete Jungles.
It seems to me that Builders, Politicians, Banks and Govt Personnel colluded and created/contributed to Real estate hype. Builders are converting fertile Lands, Dried Lakes, (even hills are destroyed) into huge apartments.
This deeply hurts Mother Nature and invoking the wrath of her in the form of floods, earth quakes and pollution.
b) Apartment prices in Indian Cirties are 2-10 times higher than well planned houses in USA/europe and other developed countries
Builders are quoting any where between 1 crore to 9 crores to buy a decent sized 3 BHK (or larger) apartment. These apartments are surrounded by Dogs (and other animals), have poor ventilation coupled with water scarcity. Also there is very less space between apartments (they share comon walls and terrace areas in most of the cases) with no concern for privacy.
For the same price, a person can buy an individual house in an acre plot that comes up with Basement, Garage and 3000 – 6000 sqft of carpet area with all amenities like Kitchen cabinets, Washer, Dryer, Air conditioning and Heating. All these houses come in a well maintained secured Housing Socities that are free of air/noise pollution.
So buying a house is not lucrative for NRIs anymore.
c) Only People with lot of black money and NRIs can afford the apartment prices
Apartment prices are so ridiculously expensive and they cater only to corrupt people or NRIs abroad. Strangely, most of the apartments are not occupied or rented out – but still real estate prices are only going up.
A common hard working person can never afford to buy a decent home. That means these real estate people do not want to make ordinary Indians (or least care) to own a home and lead a simple/happy life.
I do not know how ignoring the majority of the 1.2 billion population and catering only to few high profile corrupt wealthy people can help Real estate and India?
d) Builders are resorting to all kinds of false advertisements
Most of the apartments are quoting buzz words like eco-friendly, luxury etc. If you are a scientist or a research enthusiast then you can easily laugh at these since the selers do not know what actually eco-friendliness means? Also, if you live in a Individual House/apartment abroad, you will know the term luxury is grossly misused.
e) Builders are rising the home prices even if there are no buyers
Though Demand exists, affordability of buyers does not seem to exist in current market. However, builders keep rising property prices setting false sense of hope in the country. Honest home owners have fallen into a trap that their home which they might have bought for 12-20 lakhs five years ago will fetch crores of rupees
f) Rent prices, interest prices does not match the Home value
In all the countries, rental price for a house will fetch more than the regular interest price of the house value.
However in India –
If an apartment price is one crore – you may hardly get 23k to 35 k per month as rent. Where as if you put the same amount of money in a Bank, you get atleast 90k to one lakh per month as interest.
Only in India – the above false economics is surviving floating all rules of simple math, science, finance and most importantly the common sense.
Overall, the above causes a severe financial breakdown to Indian economy. One remedy (most people may laugh at me) I can think of is –
If you are planning to buy an apartment ask for 50-60% reduction. We will be ridiculed initially. However, if every buyer does that – these builders and home owners will eventually come down.
The above will help common Indians and Indian economy.
AM I DREAMING?
Published in indiaopines blogs