The way forward for Real Estate sector

Real Estate sector has been in the doldrums for quite some time. Over the last 3 decades, the prices have appreciated to more than 20 times. Whether you accept it or not, it is a fact that there were a huge amount of cash transactions in the real estate sector wherein the builder would reduce the price for payments made in cash from the buyers aka black money. This would reduce the agreement value and corresponding stamp duty would reduce. The builders used to divert funds from one project to another and used to increase the value on the completion of each slab. This way there were many projects which were not completed on time and the consumers had to suffer. They would stash this black money and use it without paying any tax. The builders would procure the plot of land for peanuts and develop the land after getting the requisite permissions from the authorities. They also charge a huge amount in the name of Development charges citing Landscape development, garden etc, from the consumer. The prices quoted per square foot are exorbitant and beyond the reach of the consumers. The flats offered are very small compared to the super built up area quoted and price charged on the same. To provide justice to the consumer, RERA was introduced with stringent measures to provide flats based on carpet area and completion of projects on time and not allowing to transfer funds meant for one project to another. This was also to reduce the price and get a proper flat measured on carpet area. However despite all this, the avaricious and greedy builders have increased the prices abnormally despite earning huge profits over the last several years and still procuring the land at dirt cheap rates. There are no buyers as the builders are quoting astronomical prices. You can call it Karma strikes back. It is high time the builders pass on the benefits to the consumers. To start with, the prices should be reduced by 70% for 6 months and then by 60% for the next 6 months and so on. This way over a period of 4 years the prices will stabilise and demand will pick up. The salaried consumer even after putting in 20 years service has not earned a crore. This is gross amount without deducting expenses. The prices have to come down drastically for demand to pick up.