How real are the real estate prices??

Today, the face of Mumbai is changing at all ends. What we are witnessing today in the face of infrastructure was a distant dream some years ago. With the advent of new technology and materials and the mill land converted to malls and high rise buildings, the infrastructure has changed remarkably. These massive structures do have an eye appeal and when one lands in the midst of these super malls, one feels the air of a foreign country. One forgets the doldrums of life’s drearies and is instantly transformed to a world of luxuries.

No doubt the fanciful things which were not affordable to the middle class society even a decade ago have brought many a colours in the lives of them today. With the economy on boom, the real estate prices have gone steeply high in the last 3 years. One wonders at such steep prices of the properties available today and makes one think; Are the real estate prices actually real? For this purpose, let’s take the case of the suburbs where the properties were actually affordable at good prices within the common man’s budget some years ago. Just when the malls market was opening up, things were going smooth with the prices, and suddenly after the malls opened to public the prices shot up twice and ever since they are zooming upwards. A 1 BHK flat in suburbs which was @ 10-12 Lacs is now available @25 – 26 lacs minimum in just 2 years time. Also, the rate of a brand new flat or a 15-20 years old flat are almost the same. Well, one can think it’s somewhat fair for a brand new flat as it provides all the new amenities, but what about the flats which are already old and even do not have the newer functions within them.

Isn’t the common man running into a high risk of purchasing an old flat at the price of a new one? Isn’t it unfair for the middle class to take huge bank loans and then keep on repaying for another 20-25 odd years? Isn’t it unfair that just because the malls have sprung up the value of old and new flats have become one?

Just because a group of working middle class has joined call centers and have IT jobs, they have disposable income at their end that they are chunking more than half of their salaries to buy a plush home and repaying all their golden youth repaying the banks.  Then there are these rehabilitation schemes available for the under privileged who are living in shanties or zhopadpatties and given a home in the building after the rehabilitation process. But, what about the common middle class of people, who are still at government jobs or in small private firms and who dream of owning a home in their life, saving all the money they earn to get that dream flat! When would their turn come? Aren’t we as free citizens of India feel that every common man should have a home above their head and it is equally possible for every living being to have it within his means.

Do these real estate agents / builders want to sell homes only who can afford at virtual prices or real prices ?

- Sushmita