Housing is very expensive mainly for three reasons. The land cost in
India is very high. We need to go through
the reasons why the land cost is very high.
Secondly, construction cost is also high. It’s not as high as compared to other parts in the world, but thzt is also because the quality of construction overseas is a lot better. Quality in Indi has been improving lately, but not to the level where the costs can be justified.
Third, is the cost and time involved in getting sanctions from the government, and the amount which the developer and the architect have to spend for speeding up the work.
Why land cost is very high? It is because the return on FSI [floor space index, a ratio which determines how much floor space you can have as a proportion of the land area] is low . If you look at Dubai, Hong Kong and other countries, FSI starts from 4 and goes up to 20 – in some countries it remains unrestricted. So FSI should be increased, so the cost of the flat or commercial areas can come down.In Kolhapur city the FSI ranges from 0.8 to 1.5 depending on the type of property and location of use and can by increased by some value by paying money for the transfer of development (TDR) with a floor limit restriction of 11 floors only.
Then there are many restricted areas, land which is in possession of MHADA [Maharashtra Housing & Area Development Authority] that should be opened up in a proper way. SRA [Slum Rehabilitation Authority] schemes should be developed in a proper way whereby the benefit goes to the occupants, the government , to the land owners,to the flat purchasers, and also to developers or builders.
Then there is the construction cost factor. The government can reduce taxes and the restrictions on cement and steel. That will reduce construction costs. And lastly, there is an interest cost for the time taken in getting all of the sanctions of the projects, which ultimately is passed on to flat or office purchasers. If that the procedures are shortened, then the cost will reduce, and ultimately it will bring the prices down.
Secondly, construction cost is also high. It’s not as high as compared to other parts in the world, but thzt is also because the quality of construction overseas is a lot better. Quality in Indi has been improving lately, but not to the level where the costs can be justified.
Third, is the cost and time involved in getting sanctions from the government, and the amount which the developer and the architect have to spend for speeding up the work.
Why land cost is very high? It is because the return on FSI [floor space index, a ratio which determines how much floor space you can have as a proportion of the land area] is low . If you look at Dubai, Hong Kong and other countries, FSI starts from 4 and goes up to 20 – in some countries it remains unrestricted. So FSI should be increased, so the cost of the flat or commercial areas can come down.In Kolhapur city the FSI ranges from 0.8 to 1.5 depending on the type of property and location of use and can by increased by some value by paying money for the transfer of development (TDR) with a floor limit restriction of 11 floors only.
Then there are many restricted areas, land which is in possession of MHADA [Maharashtra Housing & Area Development Authority] that should be opened up in a proper way. SRA [Slum Rehabilitation Authority] schemes should be developed in a proper way whereby the benefit goes to the occupants, the government , to the land owners,to the flat purchasers, and also to developers or builders.
Then there is the construction cost factor. The government can reduce taxes and the restrictions on cement and steel. That will reduce construction costs. And lastly, there is an interest cost for the time taken in getting all of the sanctions of the projects, which ultimately is passed on to flat or office purchasers. If that the procedures are shortened, then the cost will reduce, and ultimately it will bring the prices down.
 |
| Hongkong skyline with maximum skyscrapers |
Very useful information for every Indian citizens. Really, property prices are skying up in an unexpected limit. Something wrong in the India real estate market. Thanks for sharing.
ReplyDeleteDreamz Infra Reviews
Hi. Fantastic job. I did not anticipate this. This is a great story. If you find same related blog or total real estate solutions India just visit today.
ReplyDeleteYes,In India the prices of property is increasing day by day.So,some relevant action should be taken.
ReplyDeleteReal Estate Noida
Nice post. I think Noida is one more metro city located in ncr region of India where people can buy housing but in expensive prices.
ReplyDeleteParamount Floraville is place where flats are available in affordable price.
This was a really great read, appreciation for taking the time to put it together! Touched on some very good... row houses in bangalore|bangalore villas
ReplyDeleteIt maintain construction solutions...
ReplyDeleteReal Estate Construction Solutions
Great pieces of advice! Thank you, guys.. Real Estate Solutions really great and informative post. You are doing good and I like your blog post.
ReplyDeleteI think, this is really very well and informative content provided about Tata Primanti Sector 72 Gurgaon. Thanks for given this information here about this blog.
ReplyDelete2bhk Flats in Dwarka Sector-4
Wow, Very Useful information.. Thanks for it...
ReplyDeleteReal Estate Developers in Lucknow
Plots in Lucknow
Residential Properties in Lucknow
Residential Plots in Lucknow
Thanks For This Amazing Blog.
ReplyDeleteBoulevard by Bramhacorp Builders is the Best Upcoming Commercial Complex Project near Pune railway station with Premium office spaces now for sale!
Nice blog,Thanks for sharing with us.
ReplyDeleteRamky One Galaxia
Ramky One Galaxia Phase 2
Ramky One Galaxia Nallagandla
Ramky One Galaxia Gachibowli
Ramky One Galaxia Hyderabad
Nice post! Thanks for posting.
ReplyDeletePuri Diplomatic Greens Phase II Sector 111 Gurgaon is the right place for you if you are looking for a home that touches the benchmark of beauty and offers a comfortable atmosphere to raise your standard of living in Gurgaon. After satisfactory implementation, it is one of the best planned residential projects in Sector 111 Gurgaon. We always provide services in 3, 4, and 5 BHK houses and villas, which you necessitate for your dream home. This shopping mall project spans 20 hectares, providing residents with an abundance of open areas.
Click here Puri Diplomatic Greens Luxury Villas
for more.
Great posting.
ReplyDeleteA serene and fashionable existence property in Gurgaon is offered by M3M High Rise Apartments in Sector 113, which have endless amenities. Those who enjoy food would go to the quaint cafe, which sells a range of snacks and baked products. The multi-cuisine restaurant offers delicious gourmet treats to customers. The sports field's climate control keeps locals happy and healthy. The opulent lodge in this neighbourhood, Club Elevate, is a great spot to entertain guests because it has spaces for a variety of enjoyable activities and socialising. You won't get bored with the outdoor chess set with life-size pieces or the pool room.
For more click here M3M Sector 113 New Launch