Property prices set to rock the sky

Property prices from most of the major cities in the state have been booming exponentially. And there is no sign to get them down as our economy set to take big leap. At the same time a section of society have that much purchasing power to take up the matter of buying property with less financial stress. But, as usual middle class families are running in to distress and having tough time to dream in order to purchase property for their living.
Couple of days back British national Indian origin businessman bought a flat on the incredible price of 34 crores rupees in Mumbai. Even, Reliance Industry’s owner Anil Ambani and one more prominent businessman bought three plots in Mumbai at three thousands crores rupees. These are some bright examples to depict how property prices from some growing cities from the Maharashtra rocking the sky.
If you go to real estate market to purchase one BHK flat, it will cost you around twenty to twenty five lacks rupees even in the outskirt of city. Forget the dream of having small home. It is only possible by buying agriculture land from any village. And if you are not a farmer like Amitabh Bachchan, you have give up this idea. Owning property in city is not an easy going thing now. Majority of population relate to salary class. They are earning ten to thirty thousands per months. In other wards, they must be getting eight to twenty five thousands in hand. How can they purchase plat on installment and simultaneously meet expenses of their family. As they have to pay thousand rupees as an installment for per lack loan.
State government has taken a strong cognizant of this prevailing situation and initiate action by coming out with couple of measures. Government successfully scrapped Urban Land Ceiling Act (ULCRA) in on-going winter session at Nagpur. The out come is the result of Central Government’s stern warning to withhold around 10 thousands crores of grand mend for development of cities. The repealing of ULCRA will prevent individuals to hold more than 500 square meter land. This figure varies from city to city like in Pune the limit is 1000 square meter. The possessors of excess land have to either hand over their land to state government or construct homes for poor and let the government sell them. It will substantially scale down huge land holding in order to take advantages of rising property prices. Due to booming property prices some rich individuals go for property investment rather than putting funds in share market. Now repealing ULCRA will have adverse impact on such dead investment and remove major hurdles. State Government also planned to table another Act related to vacant land. It will prevent people to keep their plots vacant for more then three years. If they do so, they will have to pay 40 percent tax of entire market value of the plot. So, it will be beneficial for them to construct their plot rather than paying huge amount unnecessarily. This decision will bring down property prices as most of the people will throw their vacant plot in the real estate market. And rapid urbanization will be possible after that. Recently, state government passed Pune Corporation’s proposal to enhance upper limit of height for construction of buildings. It is now take up to 34 stories. But, major barrier is that Indians don’t like to live in multi-stories building more than normal five to ten stories. But this move will be beneficial to construct business centers like some western counties. So our cities will looks like western cities like New York and Washington.
Meanwhile, renowned social activist Medha Patkar has take strong exception of the government’s move and threaten to launch state wide agitation. She said that the scrapping of ULCRA has been done on behalf of some builders as now they will get large land from the heart of the city and villages adjoining to these cities. They were running out of scarcity of land for construction. That’s why they have pressured government to scrape this Act. Farmers from these villages will be having tough time to continue with agriculture activity. And they would not get proper market value as they are not well aware of the present market rates and trends.











