REAL ESTATE -MUMBAI
Ever since i was a young boy the buildings and the landscapes interested me. I would wonder how they made this , what was the thought process behind this structure, and later as i grew up my questions were of the tone “ how did this affect the neighbourhood?” , “Who would buy here?”
After i completed my Bachelors of Engineering from Mumbai University , i did my masters in Advanced Construction Managment from NICMAR, Pune one of the premier institute in India. There i learnt a lot and now i have been working with K.Patel and Co a private developer with 60 years of legacy.
Now with my blogs here i want to question everything that i observe in my field, use this space as more of a board where i can bounce my ideas off of, writing helps me clear my mind and in the process i think it will help others to get a sense of how things work in our industry ( well in India Real estate industry does not have an Industry Status , but with so many laws and Regulations they should offer it the industry status).
In the past seven years of my work i have things change a lot. Well real estate is location specific but in India it strongly is. We have a very few Pan Nation players and those who are are mainly a branch of a conglomerate . In Mumbai the development rules have changed twice and we calculate the potential of the plot has thus been changed. In Real estate i have figured that you make money going in , the real estate developer has to essentially be a visionary of sorts to see the growth of the region atleast 3 years looking into the future and well with so many variables it is not an easy ride. The profitability shrinks considerably with every policy change which triggers the change in the premiums to be paid in this highly regulated non industry business .
With new taxes coming in people will hardly buy under constrution apartments , as buying an under construction apartment would involve paying as much as 15–20 percent tax on the agreement value. I think this will again trigger the flow of black money as people will want to get taxed for the minimal amount, i do not know how it aids the government policy of eradication of black money from the system, the entire business will go for a jolt.
Well i would like to end this post here , but please write in your comments of what you think, i am new to this and your feedback will help me improve. i plan to write more on this topic in the future where in every post will look at a particular aspect of the business.