Real Estate Madness

real-estateIndians are capable of outsmarting anyone in the world. With the growing number of millionaires and billionaires there is a skyrocketing of real estate price. More than the value of the land hype and sensationalism built around the real estate pushes price to unimaginable level. This is clear from the rental of mere 133 sq.ft shop  on Delhi’s Ramgarhia, Safdarjung Road which is opposite to AIIMS for Rs.12,09,000 per month. This is Rs.9,022 per sq.ft a month. This higher than New York’s Fifth Avenue which charges Rs.10 lakh for the same piece of shop, Hong Kong’s Causeqay Bay (Rs.9.8 lakh) and Avenue des Champs Elysees in Paris (Rs.6.25 lakh). Even in Khan Market of Delhi which was charging the costliest rent till yesterday got Rs1.45 lakh for the same size of shop in rent.

 

Steep Rates

The rates at which shops are

Rented out in the world’s most ritzy locations

 

Country                     City               Street                        Rental

India                          Delhi             Safdarjung Road       Rs.12,09,000

USA                           New York     5th Avenue                Rs.10,15,000

Hong Kong                Hong Kong   Causeway Bay          Rs.  9,80,000

France                        Paris              Champs Elysees       Rs.  6,25,000

Italy                            Milan           Via Montenapoleone Rs.   5,40,000

Ireland                        Dublin          Grafton Street            Rs.  4,50,000

UK                              London         New Bond Street       Rs.4,45,000

Japan                           Tokyo           Ginza                         Rs. 4,40,000

Switzerland                 Zurich           Bahnhofstrasse          Rs.  4,00,000

 

 

Source: The Times of India 23.1.2009, p.1 & 3

 

Is this world’s costliest shop for rent announces the arrival of economic giant? If someone thinks India’s economy is decided on the basis of high rents then it is misleading. India cannot be this alone. It can be this and that. Along with this world highest rented shop it also houses poorest places. Slumdog Millonaire showcases the other side of the nation. For the drip down welfare there should be a moderation of real estate prices. Government intervention may not be the best idea but at the same time private sector is not the complete solution. A mix of both without red tapism should be unveiled at the earliest to smoothen the real estate prices.

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1 Comment

  1. RECGuy said,

    +00002010-05-15T03:13:26+00:00312010bUTCSat, 15 May 2010 03:13:26 +0000 2, 2008 at 7.27 p05

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