We have seen it all in Real Estate in Kerala. It had a sharp raise, the graph of which went past the limits, then came down sharply to stay in a state of stagnancy. Experts say that the boom that we saw in Kerala property sector was a bubble, created by the so called Real Estate brokers or realtors. It became a habit among them, even among the smallest of brokers to buy lands with mortgaged money and sell them at double the price they bought within a week or month’s span. They did not buy the land in fact, they kept the land owner on a three-month agreement period and to the amusement of the land owner, or rather to their shock the brokers sold the land twice or thrice the agreement rate. This was a routine that we used to see in Kochi one to two years back. That bubble was bound to bust and indeed it did, albeit with the global recession. Now, the brokers have left the buying to the needy. Only those who desperately need plots to build a house or a flat to live, is keeping the industry alive. This sort of consolidation is there in every flied and it will not take long for the Real Estate sector to bounce back even stronger, even without the contribution from the brokers with their “three-month agreements” period. The so called “three-month agreement.” robbed government of so much revenue during this period. If it had not been for the government intervention to increase the stamp duty and nullifying the value of agreements, the land price would have rocketed sky limits. But do you really think government should have intervened to curb the growth in Real Estate?. Do you think the government intervention has hampered the growth of Real Estate in Kerala, which in a way hampered our economic growth? Has it dented people’s investment opportunities?. Why cannot government leave the Real Estate as a sector and allow it to grow?.
Share your views in this blog…………..we are listening.
By ligith
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