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Mathematics on Pricing of Land

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Mathematics on Pricing of Land

Last updated: August 5 2009
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  • Re : Mathematics on Pricing of Land

    Big bears are going to miss the bus as Nataraj says. India has lot of young population which you (old) people are not considering at all. There will be huge number of nucleaus families for which house demand will be tremendously high in the coming years atleast for another 15 years. AFter then you may see a big fall like happening currently in US and other developed nations.I personally feel , you can get 5% (maximum) reduction by negotiating while buying flats which was not possible sometimes back while demand was high. That doesn't mean flats prices has reduced.

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    • Re : Mathematics on Pricing of Land

      One of the foolish comments of bears here is, WHO WILL PAY 2CR TO BUY A PROPERTY. Now let us discuss the subject further.
      Nobody is selling 100sqft for 2cr. We are talking about affordable housing, where the concept is not lowering cost per unit area but REDUCING UNIT AREA. In the same light, if one has a large costly plot, then it can be converted into multiple housing units which might each cost a song!
      Take the example. 3000sqft in Saligramam. One can build 4500sqft at the minimum, but even the simplest rules will get you 1.8x3000=5600sqft of flats. Now with the 6 kitchen rule one can create 6 flats of 900sqft. If independant blocks are created then it can be 12 flats of 450sqft. Each flat of 450sqft at RS 6500 psft will mean 30L per flat and 12 flats mean 3.6cr.
      The point I am trying to make is not about the specific price but the fact that the idea of TWO BEDROOM is not meant for all and sundry. Many years ago a flat itself was infradig. One bought a house.
      In early 90s it was 800sqft 2 bedroom as norm in Bangalore and Chennai. In BOmbay it would be lesser area for the same. Then with affordability in 2000s the concept of 1600sqft flat was created. When price rises the size of the skirt reduces! So will the size of the flat reduce.
      So one can always get his so CALLED HIGH price even if one individual cant pay 3cr or 4cr. Everything depends on who buys it and how he buys it.
      The problem is some of the Liar Bears are creating the illusion as if only salaried loan bearing individuals can buy. This myth has been broken multiple times on this same board in recent times with folks mentioning how PSU, Govt and Business folks are floating around with huge money. Their entry will trigger such a big rise in due course that the fools who talk bear stories will look like THE BUS MISSERS as they ALWAYS HAVE BEEN.
      Finally think of a Wiseman telling us that he is unable to sell rounds in RK Salai. Does it sound like truth or is it an imaginary sale? I will leave it to the imagination of the reader!!

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      • Re : Mathematics on Pricing of Land

        As per Nabhishek flats in 25L- 40L is getting sold like hot cakes. This is the genuine segment of Govt, SW and other industry folks buying capacity. Also prices beyond that were forced because of 4 kitchen rule and now with 6 kitchen rule flats can be smaller and cheaper as far as Chennai is concerned.

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        Tags: mathematics
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