I am of the opinion that the realestate prices may not crash as is being widely expected. The reasons are, Prime land is in the hands of biggies.. they r in no hurry to dispose it off. All this land ceiling act ... is only for common man & not for these biggies. Even people with small land / plot holdings are not disposing it off right now for reasons hard to understand. Interest rates are probably at their peak. They r bound to come down globally. Once that happens we can witness renewed interest in realestate. Our economy is growing at a very healthy pace. Given the tendency of industrialists preferring to put up industries in & around metros (for reasons of connectivity & better infrastructure) , a price crash at these places seems unlikely.
If at all there is a correction , it is going to be in the commercial space( malls,IT parks etc.).
RE:Artificial scarcity of land
by on Jun 18, 2007 08:54 PM Permalink
The solution is very simple.Increase supply and stop giving loans for land.(1970s to 1990 situation has to be restored).What all these bloody State develpment authorities and HUDCO are doing?.They are also part of looting.They acquire land and sell at auction prices.Were they set up for this? Why they are not releasing land and schemes en- masse? May be around 10 million sq meteres in the country at diffrent places, 60% of which can be commercial and price it at 1/3rd the current prices which is reasonable looking at mutation prices 4 years back. The whole market will come down and government should set off revenue spies after biggies to hound them out and fix them. Give me the charge and I will show you how prices are brought down in next 90 days.They just don't want to do it.It is a big scam.India has scams every third year. This is current scam.Lacs of crores have changed hands from poor to rich in last 4 years by low interest rates and now jrough property bull run.Let us stop kidding and face reality which is very serious. We are slowly moving to civil war conditions.Are we blind not to see it is already there in many states though at precipitating level? Do you people understand what happens when commercial property goes so high?Rents and risk increaes and so the business cost and prices go up.It is vicious circle.Get going before common man comes out and hits rich and corrupt. Have you not seen what happened in Rajasthan recently? Dump all these experts in sea.
