Real sad state of real-estate in India.

Recently, my brother forwarded this article about the cons of the housing market and the related mafia in India, and of course, I felt compelled to say something in response to it--don't worry, this is going to hurt just a little bit (A biggg thank you, dear O.Nash, if it weren't for that wonderful phraseology, I am unsure of how I'd be expressing myself in oh, so many situations!)

Anyway, I digress ('course, you say?) Read on...

Well, I think that the fact of the matter is that this article is written, not based on an expert opinion, but more along the lines of assimilated information for the layperson. It talks more about why, when there is definitely available land, the average property owner pays 4x to 5x what is necessary. It is a brief, albeit coarsely presented, summary of cost estimates that go into the basic costs of an apartment or a house-from land costs, materials and construction, to most importantly, amenities.

Even if there are more costs involved (I am sure I don't know all that there might be going into the final finishes and details), they shouldn't add up to such a lot that it presents a falsified picture to the public about the land and property estimates. And micro-corruption. I think that's the base, the underlying crux of the whole issue--there are so many people (government, regulatory boards, developers, contractors, etc.) that need to be paid (off) that after you go through every person on the hierarchical structure, you end up shelling out exorbitant amounts for a house.

And household furnishings? Well, we could probably account for 2-5% of the property value to go into fittings, cupboards, etc., but even the most reputed (or should I say popular?) builders bring in only the basic necessities these days. Just the other day, I was reading something about how builders always seem to focus on high-end housing for the urban dweller, particularly within the metros of the country--where does that leave the middle class? The sad truth is, there is NOTHING OFFICIAL about the housing market in India--land rates are mostly flat-rated by the govt., and builders hike up prices for below-average homes that are "within the city limits" but are actually suburban, with poor amenities because the "area is still expanding". Compared to the average cost of a house in the US (where amenities and location are excellent and provided you are not looking to buy in the heart of San Francisco), the price is about $200, 000-$300, 000. (90 lakh-1.5 cr rupees). A "posh" fully-fitted apartment with private terrace, car parking, and swimming pool in Madras that's at a fairly convenient location with "pure, 24-hr water supply" costs as much!!! (Source: realestate-chennai. com, 99acres.com) .

Probably implies that the Indian economy in terms of real-estate is not expanding and maybe even dwindling down.

Guys (and by that I mean gals too, of course), comments are most welcome!