I was fortunate enough to get a chance to stay in some of the happening cities of India and as I’m having keen interest in Home & land (the real estate segment) I have observed and tracked the real estate market of all those cities growing leaps and bounds.
I’ve fascination towards Real estate right from my childhood might be because we stayed in rented accommodations and government quarters till my father got retired and it was only after his retirement we purchased our own house. I always dreamed of owning a house (big enough) with a small garden and facing a big water body. Though a big water body is a dream come true in the cities I have lived in because of scarcity of water itself but still I dreamed of having a small water body (swimming pool) in my house if I’m not able to place my house is front of a big water body.
With a picture of dream house and willingness to compromise on amenities (which I feel are must for a house to be called as dream house) I started hunt for my own house. To my utter surprise I found that that the city I have been living in from so many years has grown beyond my imaginations, areas which were have a deserted look in day light now boast on swanky malls and excellent infrastructure, areas which use to be very cheap and people were reluctant to invest in those areas are charging a premium today and that too multifold.
The city has grown leaps and bounds and rapidly expanding its limits but no cheaper housing available no matter how far you are from the main city, all one can see is luxurious apartments and bungalows; construction and only construction is at sight. This made me to think; what’s that encourages builder to create luxurious housing, why there are so many sellers in the market, why there is huge demand, how people are managing to put money in the luxurious projects and if the common man is not buying then who are those peoples who are investing.
Though I haven’t got any concrete answers to my question but one thing I’m sure is that there is not enough of buying appetite in the market and price tag for the properties are highly inflated. The price which is demanded is based on an previous transaction occurred in the city/ locality/ building which becomes the benchmark for the future transaction. An apartment in a residential building sold for an unbelievable price ensures that the future deal of any apartment in the same building or in areas nearby will fetch a price higher than the previous deal. Such deal attracts more number of buyers to invest in the happening places, willing to pay a premium for the transaction and in term inflating the property prices.
These seems to be a never ending herd race; people who are richer gets more richer and common man remains a loser in the rat race; no matter he wins the race but he still remains a rat and stays on rent for his life.
I’ve fascination towards Real estate right from my childhood might be because we stayed in rented accommodations and government quarters till my father got retired and it was only after his retirement we purchased our own house. I always dreamed of owning a house (big enough) with a small garden and facing a big water body. Though a big water body is a dream come true in the cities I have lived in because of scarcity of water itself but still I dreamed of having a small water body (swimming pool) in my house if I’m not able to place my house is front of a big water body.
With a picture of dream house and willingness to compromise on amenities (which I feel are must for a house to be called as dream house) I started hunt for my own house. To my utter surprise I found that that the city I have been living in from so many years has grown beyond my imaginations, areas which were have a deserted look in day light now boast on swanky malls and excellent infrastructure, areas which use to be very cheap and people were reluctant to invest in those areas are charging a premium today and that too multifold.
The city has grown leaps and bounds and rapidly expanding its limits but no cheaper housing available no matter how far you are from the main city, all one can see is luxurious apartments and bungalows; construction and only construction is at sight. This made me to think; what’s that encourages builder to create luxurious housing, why there are so many sellers in the market, why there is huge demand, how people are managing to put money in the luxurious projects and if the common man is not buying then who are those peoples who are investing.
Though I haven’t got any concrete answers to my question but one thing I’m sure is that there is not enough of buying appetite in the market and price tag for the properties are highly inflated. The price which is demanded is based on an previous transaction occurred in the city/ locality/ building which becomes the benchmark for the future transaction. An apartment in a residential building sold for an unbelievable price ensures that the future deal of any apartment in the same building or in areas nearby will fetch a price higher than the previous deal. Such deal attracts more number of buyers to invest in the happening places, willing to pay a premium for the transaction and in term inflating the property prices.
These seems to be a never ending herd race; people who are richer gets more richer and common man remains a loser in the rat race; no matter he wins the race but he still remains a rat and stays on rent for his life.
Image source: psdgraphics.com
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