The Real Time Issues in Real Estate

Recently while anchoring a Real Estate conference, I came across several builders and investors who discussed issues pertaining to affordable housing. The term "affordable housing" seems like an oxymoron in today's times, especially when a one BHK apartment, in Mumbai, costs almost a crore, that too overlooking a gutter. 

The demand for housing is an ongoing dilemma for many.  Amidst several questions being raised, one of the things that rang a bell was the challenges people face for something so basic as a home. A home is one of our basic necessities, however with the real estate prices fluctuating every day, it would be safe to say that in today's times being a home owner is an achievement.  

Cities are expanding and untapped land in lost suburbs is being developed to accommodate the needs of the consumer.  Of course, housing in the suburbs may be much cheaper but it comes with a high price of commuting long distances everyday. 

Developers are busy acquiring land and clearances, while consumers are caught up trying to figure out how they can secure a house within their budget.  Even if the consumer is willing to shell out crores of rupees for a small apartment, there is no guarantee that the view from top will be easy on the eyes nor is there any assurance that the noise levels will allow for a peaceful stay.  

Despite the noise, the lack of view and several other issues such as water, security, sewage, easy connectivity to local transportation; the real estate market boasts of such high prices.    

In India, the concept of studio apartments is still rare.  Hence, for a young single person who is just beginning a career, that does not pose as an option.  Once a person starts a family he/she usually wishes to graduate from a one bedroom apartment to a two or three bedroom apartment, but this may not be possible because the prices are so high that affordability remains a huge constraint. 

Consumers are at unrest because of few options and major price hikes. Though we are inundated with information and our resources may be plentiful, it is still difficult to acquire space in big cities. Urbanization has citizens excited but the initial high is short-lived.  Once a person moves into a big city, he/she is highly disappointed due to these on-going housing issues. 

The debate on how the market is shaping up raises many pertinent questions, but do we have the answers?  Maybe... Maybe not...