1. Suppose I build a project with say 100 flats and due to CARTELL policies i am able to raise the Sell price to 1 Crore, while the production cost might be 10 lakhs.
2. Generally MANGO people cant afford so not all the flats are sold, which is actually VERY GOOD, explain later how, however,there are always a few buyers, political black money, NRIs, Investers etc. Now suppose 50 are sold, so i have made a profit of 4500 lakhs.
3. Now in the mean time, my flat price has increased like 1.20 crore, now seriously no one can afford it, however, i will use it to my advantage, i will take BANK Mortgage for another project using my 50 flats as "colletoral".
And the cycle continues.
Recently the Maharastra Environment Ministry has banned the REMOVAL of sand from river banks, which is vital for construction on obivious environmental reasons, right ? WRONG ? it is working for the builders, so that no NEW builders can build CHEAP flats and disturb the exisitng equilibrium. So all activity has stopped, yes but not all, they have stopped here but they are going to other places away from Mumbai into further interiors.
We laugh China has empty cities, we are not THAT far !!!
These real estate companies have made super profits in past 8 years in connivance with the banks, government and media as dalal by exploiting the aam aadmi..they are the offshoot of the crony capitalism.
Re: Re: realty company
by West Indian on Oct 12, 2012 02:58 PM
The prices should've falled down by 75%, then. With their money power they are holding unsold flats and un-completed projects. Dear.
Re: Re: realty company
by Bhagwan on Oct 12, 2012 03:03 PM
Poor English...none......are not(?)...functioning now..but 4 ur kind info Mumbai has huge inventory of unsold property..where did it come from..further these companies may be functioning else where in India and looting the masses.
Re: Re: Re: realty company
by Bhagwan on Oct 12, 2012 03:06 PM
Also treating cheaply acquired land from the government as land bank and selling it without construction.. that too in connivance with the govt.
Re: Re: Re: realty company
by Roy on Oct 12, 2012 04:25 PM
It was a bad english,that i accept,when typed in between jobs it haappen.But i am costing engineer in Mumbai for a Realty firm,Here none of the Big firms in realty are performing now.Engineers facing the pre-2004 period.Ill treated.
