No Reality In Realty

Sent by a Reader to Editor

Next time,you find any article in newspaper or TV programme saying realty /property Prices will go up. Remember it is a paid article at the instance of some big developer/builder.

HUDCO or Govt Deptts should stop heaping any further or bigger insult and making mockery of lower or middle class population by twisting , tweaking and defacing the definition of Affordable House.

Correct Definition of Affordable House is as under :

Affordable House = 3 or 4 x Average Annual salary of Mass of particular City.

Importantly budget house should be decent in terms size, shape and dimension ( 2 BHK admeasuring 900-1000 sq.ft) and made up of standard building materials with all basic amenities nearby.

As per recent report, the national average per capita income in India is approximately Rs.33,400/- per annum.

For Instance, If Ahmedabad has a population of 60 Lakhs and the average annual salary is Rs. 40,000. Still taking Rs. 70,000 on higher side :

Affordabale House = 4×70,000 = Rs. 2,80,0000

This is indicative of the part that shows that majority ( 50-70%) of Ahmedabaad population can not afford to have House priced over 3,00,000 for 2 Bhk.

However, some of the organizations with a bunch of fools or wicked persons are abusing the word Affordable House by saying

400 sq.ft of 2 Bhk = Rs.4-5,00,000 for Slum Dwellers.

They should better go to understand the basics of Affordable Housing rather making such insolent and absurd comments via different forums and print or electronic media.

Does it not surprise you when you hear that a 2 BHK flat with 1000 sft is priced at Rs. 22-30 lakhs depending on area whereas the equal area in a mall is now being sold at Rs. 4.55 to 8.55 lakhs depending on area in Ahmedabad. This itself shows that residential units are all overvalued to a great extend merely with the intention of looting people.

Affordable housing word was coined with a vision to give House for all and its price can’t be different for different strata of society . It simply means the house which can be purchased by masses . It does not mean houses purchasing power depending on individual financial strength.

Moreover, it should be ensured that it does not fall into the clutches of multiple house holders and rather it should go to the hands of genuine house seekers so that Inflation and Recessionary trend can be arrested by increasing the purchasing power of general mass.

Reducing bank’s home loan interest rate does not enthuse house seekers as learnt from our past experiences. Only remedy to bring cheer on street is to lower the house prices . Governement should build at least 3-5 lacs affordable houses for general mass in Ahmedabad.

Since some builders are trying to fleece money from house seekers by comparing Ahmedabad with cities like Pune, Mumbai, Kolkatta or Bangalore . Most of the time, comparison is drawn with Mumbai. Importantly, property prices’ of Ahmedabad can not be compared with that of Mumbai housing prices on knowing the start difference between the two :

a) Mumbai has tall structures/skyscrapers/high rise buildings because of paucity of space. Ahmedabad has a large track of open land in the mid of Ahmedabad city at various places.
b) Mumbai’s builders and rich class people even live in flats whereas Ahmedabad higher class society lives in Bungalows or Villas.
c) Mumbai sees Vertical Development ,Ahmedabad witnesses Horizontal Development.
d) Mumbai’s streets are crowded and even millionaires commute by local trains. Ahmedabad affluent class people use their own person cars.
e) Mumbai have a large street vendors who offer affordable food whereas Ahmedabad is city of Restaurants and Hotels with a very few street vendors.
f) Mumbai has a lot of business or employment opportunities , Ahmedabad in comparison to major cities has lesser opportunity.
g) Over the years, Mumbai population has exploded whereas Ahmedabad population is increasing very steadily.
h) Mumbai does not show largely any units in buildings unoccupied, Ahmedabad’s most of the buildings shows 50 or less occupancy. In last 5-6 years, the units added have remained largly unoccupied and idling in Ahmedabad even in posh areas like S.G Highway, Satellite, Vastrapur, Science City etc.
i) Mumbai has a very few multiple house holders in comparison to Ahmedabad. First time house buyers are neglible inAhmedabad.
j) Mumbai shows a fast track construction, whereas the project started in 2004 is still at many places not completed in Ahmedabad at a posh location because owners don’t feel that there is enough buyers at this price in market.

Therefore , Let us not make the mockery of whole building systems and various house seekers.

Though India being an agrarian country , its economy is largely dependent on Housing and Realty and Infrastructure sector. One can say, Construction is the backbone of Indian economy and it has cascading effect on all tiers of other sectors .

Malls and Multiplexes are failing constantly because their heads/CEO were duffers who did not do proper studies that their format will be successful only if there is enough purchasing power of common men. MORE, Subhiksha, Next etc retain chains have already closed their shutters and many are in pipeline.

Who is responsible for increasing unemployment and mass unrest leading to burgeoning of evils like chain snatching, burglary, loot, theft, kidnap, murdars, suicides, fights , etc.

As per Times of India newspaper report, average 19 burglaries a day has been found in year 2009 in Ahmedabad. Just see the meterioc rise in crime. Certainly, Ahmedabad is not known for such things. We are apeing the infamours cities like Bihar perhaps surpassing them just because poors and middle class people are being suppressed..

Is Ahmedabad known for this evils say 10 years back. It is all because of loot been done by higher class society and abnormal rise of housing prices and essential good prices.

Realtors & their connies like brokers are responsible for bringing India to the brink of very big recessionary period because of their inflated housing prices no genuine buyers are coming forward and investor are shying because they are not able to sell their units.

No construction , No India. If India has to be saved from the cruel clutches of Economic Slowdown and downturn.

Construction has to be carried out sustainably which is possible only if genuine house buyers come forward in masses and this is possible only with
True Affordable Housing— A house which at least 70% of city population can afford to purchase without going to financial institution.

Inspite of knowing that Cement sector still has not seen any competition and there is cartelisation, why Govt is sleeping over the issue and not allowing more cement companies to come up so that prices go down drastically of cement and then construction.

Sustainability can exist only if there is affordability, accessability, availability and equality in society.