As a 15-year-old I could never imagine, that one day being 25, I would even think of buying land or houses in the range of crores. Otherwise, I would have had the answer to Amit Ji's favorite question for the winners of " Kaun Banega Crorepati? ".Nonetheless, let's talk about the hot real estate in India.
The 200 gaj plot that cost a mere Rs. 7000 in a semi-urban city in the 2000s, is today touching the Rs. 100 lakh mark. The data that I present is not even Mumbai or Delhi, etc, this is just a tier-2 city where 20 years ago the properties were just lying cold. There are numerous residential projects going on date by both private and the respective development authorities in the suburbs at a rate faster than the migration rate to these suburbs. This is based on the hopes that one day the properties are going to bring in 50 times more profit to the respective investors. But will this turn into the same situation as those met by Ghost Towns of China?
The idea developed when a cluster of some 50-70 habitable societies with acres of land and multiple houses in rows stood un-dwelled and abandoned. Every country has some or other kind of ghost town but China has had maximum investments in these in the booming period of the real estate in their country. The circulation of money stopped when the artificial boost to the economy went away and there wasn’t any investment happening into the housing plans and real estate of the particular projects. Many reasons play a part in sanctioning and building of such towns and unprecedented failure at even one such factor can make the whole thing go to a standstill.
Today India is having the same kind of dynamic changes and it is so huge that many people talk about the risks of the future. (https://www.livemint.com/). India and China pose a lot of similarities in terms of population size and the Asian equation comes into play. But, Can India afford the loss of such vast land and houses as China could, given the same size of population? The answer, in my opinion, is, No.
The reason is that in India, real estate, driven by the growing demand for houses still has a majority who don’t own a proper residence of their own. Until this situation of having at least one fixed home is found in every household this scenario will not change. This might be the reason that builders and contractors today are earning on par with doctors and engineers. This ferocious market is not stopping any soon.
Not to ignore, the kind of government India has had where welfareism has dominated the backstage despite capitalism being the anchor. Therefore we can safely say, that with the chunk of land in India in proportion to its population and the kind of housing in cities shooting up, there won't be a situation where there are colonies where no one will ever live.
Talking about the worst-case scenario, we may have the problem of technical and authoritative delays in handing down promised houses and the inconvenience associated with it. But despite the real estate crash or boom, the Indian housing sector is never large enough to lay useless and barren.
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