Properties are high in India. Yes. And this is more because of easy availability of loans. It is due to nexus among Banker –Developers-Investors. Just by investing 20% of property one can actually possess a property. Now days it is even lesser. Bank gives loan 3 times for the same land. Firstly to buy land, secondly to developer for construction and finally to buyer of readymade property. This is in turn making real estate sector a business for investing money just like any other investment. In India, moreover Developer –Investor nexus help even to convert black money. So it completes a cartel. If you see, the properties which are not eligible for loan – the rates will be minimum 30% less compare to market rate. That says all.
Properties are high in India. Yes. And this is more because of easy availability of loans. It is due to nexus among Banker –Developers-Investors. Just by investing 20% of property one can actually possess a property. Now days it is even lesser. Bank gives loan 3 times for the same land. Firstly to buy land, secondly to developer for construction and finally to buyer of readymade property. This is in turn making real estate sector a business for investing money just like any other investment. In India, moreover Developer –Investor nexus help even to convert black money. So it completes a cartel. If you see, the properties which are not eligible for loan – the rates will be minimum 30% less compare to market rate. That says all.
The real reason is corruption> If there was no curruption in the housing sector the prices would come down by about 10-15% . Second reason is the sleepy Execution of projects. Third is the the builders have an image of being poor paymasters who delay payments and nitpick when it comes to actually paying. That Increases the price of the flat by another 5% as those supplying inputs, factor in the poor payments to the prices quoted.
