THE OTHER SIDE OF THE REAL ESTATE BOOM

Real estate is considered as the best investment option nowadays. That is why we find a mad rush to buy plots and houses without a thought whether the price quoted is justified or not. True, in a market driven economy, any market is available for a man to invest, develop, grow and profit. But this is not always good for a developing economy. It requires a level of maturity and responsibility in an individual to invest in such kind of instruments. Housing is a basic need of the human being to be provided by the State in any kind of economy. The State must aid the individual, at least, indirectly, if not directly, to live under a roof.

What happens when in a developing country like India, people are allowed to invest in real estate and housing. It becomes a plaything in the hands of the rich and the well-to-do. The rich is allowed to buy indiscriminately any number of houses or plots, often more than the one he & his family can comfortably reside in, as a sound investment option and to rake in profits. For every one such person there are probably 10 or even 50 person going without a house. Does it not create an imbalance in the society?. Why can’t there be a ceiling that a family can own, at best, two houses only?. Two houses, because, in many cases, a man inherits a house in addition to the one he has built. Housing as a sector should be only in the hands of the Government interested in the welfare of it’s subjects and not opened to private participation.

Land ceiling act came into being to help small farmers who are a big vote bank for our politicians. But, in spite of such an act, are not big and rich farmers thriving now?. Look at the unbridled havoc caused by the real estate boom. Private Enterprises with an eye on the profits are buying farm lands from the farmers to convert them into housing plots and houses. This in effect reduces the amount of land available for cultivation, thereby reducing the food grains production. Apart from that, it causes a migration of the farmers from rural areas to cities which can cause a social catastrophe later.

Housing and plots are developed by the promoters with a pure profit motive and do not consider the infrastructural faciltities available at the sites. Are the resources like water, roads,sanitation facilities available at the site?. Clearance is obtained from the local Government offices often by the payment of bribe. Are the soil condition fit for building houses at that place?. None of these considerations are taken into account either by the promoters or the rich buyers, because profit is their sole motive.

In a welfare state, the Government must always consider how to bridge the gap between the rich and the poor. The society must balance these two classes in order to create a peaceful life for its citizens. Housing, Education and health must be provided by the State (not necessarily free) if a balanced and peaceful society is to be built.