Our population is growing at the rate of under 2%. So , demand for food, shelter and other basic amenities also grows at the rate.
With in a span of 10 years ,the prices of every thing have increased by 300%. Compare today's prices with prices prevalent in 2007 or 2008. You will be shocked to see that even food grains - prices have shot up by 200%. Vegetables ? about 500%.
This was caused SOLELY because of real estate.
- Ruthless conversion of lands into concrete has reduced agriculture fields - More and more farmers abandon agriculture and kill the golden goose by selling lands to realtors. - Due to inflated real estate there is demand for higher wages thereby increasing operational expenses of every industry there by increasing cost of production and hence prices.
Unless the government steps in and dismantle the real estate mafia, there is no way the economy will improve.
Look at the situation -any Metro , any 2 BHK costs one lac US$ a piece in decent areas. That is 0.1 Million US$ for you. YOu take ten thousand such units and you are talking about a BILLION US$ worth of real estate. There are lacs of such unit and the so called 'MARKET PRICE' ( inflated by at least 200%) is TRILLIONS OF US$. There goes your entire economy - sucked into the real estate.
Indian real estate is at least twice over priced ( inflated ) - ARTIFICIALLY. At least twice.
WHole load of foreign remittances by IT services is sucked into real estate.
People earn good money in IT and other high paying industries and dump their hard earned money into buying these INFLATED properties there by draining the economy. Now, they are stuck because they can not resell them at that price.
The result is pretty much every thing in INdia has become expensive.
Unless the government steps in and dismantle the real estate mafia, there is no way the economy will improve.
Look at the situation -any Metro , any 2 BHL costs 100000 US$ a piece in decent areas. That is 0.1 Million US$ for you. YOu take 10000 such units and you are talking about a BILLION US$ worth of real estate. There are lacs of such unit and the so called 'MARKET PRICE' ( inflated by at least 200%) is TRILLIONS OF US$. There goes your entire economy - sucked into the real estate.
Indian real estate is at least twice over priced ( inflated ) - ARTIFICIALLY. At least twice.
WHole load of foreign remittances by IT services is sucked into real estate.
People earn good money in IT and other high paying industries and dump their hard earned money into buying these INFLATED properties there by draining the economy. Now, they are stuck because they can not resell them at that price.
The result is pretty much every thing in INdia has become expensive.
Did any one decrease there prices .. i am from Chennai and i dont see any reduction , even a bit in house prices .. I actually want to buy one , but the cost is out of my reach
