Rapid
economic progress has had a significant impact on property in
India over the past twenty-five years. In the past all countries
that have liberalized their market, allowed FDI inflows, and started trading
intensely with the outside world have experienced a rapid rise in the standard
of living of it’s citizens. A rising standard of living has led to the creation
of new real estate that is more expensive than was real estate in these
countries at any other time in the past. Real estate in India is no exception, properties in India that
could be bought for 1 lakh rupees thirty years ago, will not be sold for less
than 2 crore’s today.
During
all this rapid progress that has led to a higher standard of living for
millions in India, the side effect of rapid economic growth is being overlooked
and is being brushed under the rug. Future challenges that India faces are as
follow.
Table of
content
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Urban Migration Leading to Chaos
Nearly
five hundred million or 50 crore Indians it is estimated will live in urban
centers in India within 8 years and nearly 6 crore will live in urban slums by
this time unless action is taken to provide slum dwellers with suitable urban
housing.
The
number of Indians expected to live in urban slums may even be greater than the
6 crore mentioned if the government does not begin to tackle this problem
sooner rather than later. Slum dwellers must own their own property in India and become a part of
the formal economy.
Poverty
Nearly
one third of the worlds poor, or 40 crore people, live in India. The number of
poor in India may actually have risen in several Indian states over the past
few years. Additionally, many of those who have escaped poverty over the past
few decades are in danger of once again falling into poverty. Owning realestate in
India is only a distant dream for many of the poorest of the
country.
Widening Inequality
Despite
the large number of Audi and BMW cars on Indian roads, there is a wide
financial gulf separating India’s rich from the poorest in the country. The Per
Capita GDP in India is a little more than $1,400 and is among the lowest in the
world. The difference in the per capita income also varies widely between
different states; it is $294 in Bihar and $436 in Uttar Pradesh, far below the
national average. The wide gulf between per capital incomes in different
regions leads one to infer that the poor of region may be regarded to be rich
in another region and these same rich individuals of one region may be able to
buy property
in India at a poorer region.
Rural Backwardness
While
many Indian cities have glass towers and glitzy shopping malls, rural regions
of the country are still decades behind the lifestyle enjoyed by the urban
elite. One third of rural Indians don’t have access to an all weather road and
three hundred million do not have any electricity. The ports, airports, and
railway’s are considered to be highly inadequate to fully serve the countries
needs. Infrastructure across many parts of India is reminiscent of the British
era and much of the real estate in
India suffers from a lack of a proper support from civic services.