"More Expensive than Us, Europe": Powerful Slams "Uncontrolled Hyperinflation" in Indian Real Estate
In a scathing statement, Union Minister of Housing and Urban Affairs Hardeep Singh Puri criticized the exorbitant rise in housing prices in India, stating that the country is now more expensive than many parts of Europe. Puri, who is also the in-charge of the Ministry of Civil Aviation, highlighted the urgent need for action to address the "uncontrolled hyperinflation" in the Indian real estate market.
"The current rate at which prices are rising is unsustainable and unsustainable," Puri said in a release. "We are already seeing prices in major Indian cities comparable to those in Europe, where people pay exorbitant sums for a square foot of space. This is simply unacceptable, and we must take immediate action to curb the hyperinflation in the real estate sector."
The minister’s remarks come as no surprise, given the rising concerns about the affordability crisis in India’s housing market. According to data from the National Housing Federation, the average price per square foot for apartments in major Indian cities is now more than doubled since 2010. In some cities, like Mumbai and Delhi, prices have more than tripled in just the past five years.
The consequences of this hyperinflation are far-reaching. It has led to a significant decrease in purchasing power, making it difficult for individuals and families to access affordable housing. Moreover, the rising costs have pushed many would-be homeowners onto the fringes, forcing them to opt for unaffordable and suboptimal housing options.
Puri stressed that the government is committed to addressing the issue, highlighting initiatives such as the Pradhan Mantri Awas Yojana (PMAY), which provides financial assistance to low-income households to purchase homes. "We are working tirelessly to ensure that our interventions not only stabilize but also reverse the trend of prices in this sector," Puri said.
The government has also announced a slew of measures to reduce costs and boost transparency in the real estate sector, including the Real Estate (Regulation and Development) Act (RERA) to regulate transactions and prevent fraud.
While the government’s efforts are commendable, more needs to be done to address the root causes of the problem. Experts agree that the root cause of the hyperinflation is largely due to lack of land availability, poor planning, and increasing land costs.
To combat this, Puri suggested that the government must focus on enabling land-use regulations, developing more inclusive and affordable housing options, and introducing policies that promote the development of underutilized land. The government must also incentivize developers to build affordable housing options, he said.
In conclusion, the minister’s statement is a wake-up call for the Indian government and the real estate sector to take immediate and decisive action to address the "uncontrolled hyperinflation" in the real estate sector. The consequences of inaction will only worsen the affordability crisis, further exacerbating the already significant housing shortage in India.
