Why are real estate price increasing in India?

Hello friends, once again welcome to expand wisdom. You must have heard it telling the people of your house that if we would have bought the land of that place earlier or had bought the house, then at that time its value of 500000 has become 500000 today We get profit. Yes guys today we will talk about “Why are real estate price increasing in India? “.If you look at the graph of the last 6 to 8 months, there has been a lot of boom in real estate. So stay with us till last.

real estate

What is real estate? History of real estate.

Land and building assets; Property like land, property etc is called real estate. This is in 1992 when the Government of India gave an opportunity to NRIs to invest in Indian real estate. Then the price of real estate in India started increasing very fast. In the 1990s, there were some scams, due to which the price of real estate in the market started rising rapidly.

Greed came in the minds of the people and in India too the same trend started burning very fast and the prices of real estate started increasing. Suddenly 2008 saw a huge downfall. Then as soon as the price of real estate was coming up slowly. Downfall was seen again due to GST and some policies but now again the price of real estate is increasing.

How corruption increasing real estate prices?

If we take the example of an industrialist, if he has a profit of about 8 crores, then he assumes that 600000 profit is being made and 20 million tax has to be paid. Those industrialists prepare their list to save their taxes by doing some extra work like installing new machines and inflating the salary.

Due to which their tax is saved. But if this tax of theirs is ringing, then black money of about Rs 8 crore is generated. And now that black money cannot be invested everywhere because if any money is not accounted for with you then it becomes very difficult to invest it in the stock market and everywhere.

Because of which they invest that black money in real estate. Investing in real estate increases the value of real estate. And because of this type of reservation, the price of real estate is increasing.

Other factors that increasing real estate price

Demand – After covid-19, there has been a lot of demand in the real estate sector. Most of the salaried people who used to live on rented house now want their own house so that they can live in their own house and after three to four years if they have to move somewhere else they can migrate with profit. Due to which he buys in real estate, its price is increased.

Cost of raw material– If you look at the platoon price of steel in March 2021, it was around Rs 51 thousand per tonne. Today, if you see the price of the same, then it has become about 11 thousand rupees for 1 ton. Apart from this, the price of cement has also increased, which has become about 460 a bag. Which is an increase of about 25%. Plot prices in real estate are also very high. The plot which was available at a price of 60 to ₹ 70000, about 1 year ago from today. Today he is trading around 120000 to 130000.

 Low return in other sectors – In other sectors like gold share market, silver etc., in today’s date, the returns are getting very low. There is a lot of stability in the stock market right now. Due to which liquidity is coming towards real estate. As the money from other sectors is coming towards real estate, the prices of real estate are increasing. Real estate was a good return sector in the past and there are very high chances of giving good returns in future as well.

Should you buy house or not?

If you buy a house, then the cost of maintaining it comes to about ₹ 100000 annually. If you live in the same house, then your annual rent comes to about 2 to 2.5 lakh rupees.  you do not buy a house, you will invest the same money every year in mutual funds and share market etc. So you will be able to see that you will have more money than the valuation of the house you wanted to buy.

What if you want to invest in real estate?

If you really want to invest in real estate, then you should wait for some time, at such a time in which the real estate price decreases to a great extent, then it is more appropriate to invest money on real estate at that time. Buying a house is also very important for every person.

So pay attention to this too. If you are looking to buy real estate properties in big cities, then buy at reasonable prices and only after getting an idea and observation of the nearby location price.


So this is all about “Why are real estate price increasing in India? “.Always invest money in real estate on EMIs so that you can save money and never invest money in more than one real estate.

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1 What is meant by a real estate?
private property in the form of buildings and land

2 What are the 3 types of property?
residential, commercial, and land

3 What is the most popular type of real estate?
Residential property

4 Is real estate a good investment?

5 What does a real estate agent do?
help people buy, sell, and rent homes and other properties.

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