Yogen Shah, director of the supply chain in Petrofac, raised concerns about the outbreak of real estate prices, wondering why there was no correction despite hyperinflation. In a LinkedIn post, he compared ownership rates in Indian metropolitan cities to those in the United States and Europe, highlighting the striking contrast in GDP and per capita income.
Shah cited a recent example of a friend who bought an apartment of 1,100 square feet with three bedrooms in a suburbs of Mumbai for 3.5 crosses. “How do they adapt to 3 BR in 1,100 exceeds my imagination,” he said, calling the Indian real estate market “hyperinflate”. He attributed this to “black money from corrupt employees”.
Expressing the frustration of the financial examination of other transactions, Shah underlined the lack of strict checks of the real estate agreements. “For real estate, there are no such strict requirements. You can buy a property in the names of different family members – who don’t even win. How?” questioned.
Shah has also made a comparison with the stock market, stressing that real estate prices are not correct despite environmental and infrastructure problems. “On the stock market, prices reflect the performance of a business. In real estate, nothing happens with the change in air quality, pollution, water shortage, excessive traffic. More of crowds, more prices 🙃, “he wrote.
Supporting its argument with economic data, noted Shah: “American GDP is 27 billions of dollars and that India costs only 4 dollars. The per capita income in the United States is $ 60,000 per year , while in India, it is barely $ 2500. ” By concluding his post, he said: “I do not put my money in Indian real estate, apart from primary residential requirements. Are you?”
The message quickly sparked a debate, users expressing concerns about inflated real estate prices and alleged market manipulation.
A user has criticized the state of urban infrastructure, saying: “I cannot even think about buying a property at prices that are more than double in certain places. No appropriate roads, of private water supply, D ‘Private electricity and electricity drops of 3-4 summer prices are through the roof!
Another user has highlighted tax evasion, writing: “In India, the colonizers created a parallel system to escape taxes. Almost all residential plots are sold double the recording value, with 50% of the payment made in cash ”.
Some users have suggested political interventions to limit investors focused inflation. “We must limit the number of real estate properties that can be bought in a city. Investors with black money tighten real buyers and inflate the market. The government should not record more than one property per person in A city based on Aadhaar “, a user proposed.
Another user called for more strict property regulations. “The government must limit” nameless real estate transactions “. The properties should only be recorded in the name of a person with a verifiable source of income.
However, not everyone has shared skepticism. A speaker underlined strong demand on the luxury market, saying: “Gurgaon sold apartments worth 100 crosses each, and the inventory was sold as hot cakes. The Indian real estate industry is in Full boom because people want accommodation within the city limits with all the luxuries and amenities nearby.
