Housing prices increased in 12 cities in the second quarter of this financial year. Kolkata rose by the highest margin of 5.3%. Although prices in Delhi declined by 4.5% in this quarter they have risen by 6.7% year on year. If property prices in cities have touched zenith people with money, especially black, will look elsewhere
to invest and they are now buying up rural land. Guarav Jain, a real estate consultant says that the average buyer of rural land " is someone who is over 40, kids educated, has a house and is wondering what to do with surplus cash." In Vadicherla village in Andhra price of land was Rs 20,000 an acre 10 years ago. In 2003 it was Rs 25,000 an acre, by 2006-07 it had risen to Rs 200,000 an acre, to Rs 300,000 in 2010 and to Rs 1.2 million in 2012. The curious thing is that Vadicherla is a village of some 700 families, around 100 km from the nearest town, Warangal and 15 km from the Vijayawada-Hyderabad highway. The price of land in Ramavarapadu, a village near Vijayawada, shot up from Rs 700,000 an acre to Rs 70 million and in Mardi, which is 15 km from Solapur in Maharashtra the price has jumped from Rs 20,000 to Rs 1 million an acre in 10 years. Such prices are bound to make fundamental changes to villages in India. Farming is hard and dependent on fickle weather changes, so farmers are tempted to sell out by these mouthwatering prices and work as day laborers instead. The disappearance of agricultural land will lead to decreasing produce which, with an ever increasing population, can only mean disaster in the near future. When children of farmers see some of their friends driving around in cars they put pressure on their own parents to sell out and enjoy a life of luxury. This is fine while the money lasts but once it finishes they will find no work unless they are educated and will take to crime. This has already happened in Delhi. Shortage of land and surplus funds, along with the NREGA, has led to severe inflation which has led to a 40% drop in savings among urban middle class. " Poor households are unable to maintain the consumption at current prices while middle income families find their purchasing power erode fast, thus having far less surplus money," said DS Rawat, General Secretary of Assocham. Soon we will not be able to afford food or shelter.
to invest and they are now buying up rural land. Guarav Jain, a real estate consultant says that the average buyer of rural land " is someone who is over 40, kids educated, has a house and is wondering what to do with surplus cash." In Vadicherla village in Andhra price of land was Rs 20,000 an acre 10 years ago. In 2003 it was Rs 25,000 an acre, by 2006-07 it had risen to Rs 200,000 an acre, to Rs 300,000 in 2010 and to Rs 1.2 million in 2012. The curious thing is that Vadicherla is a village of some 700 families, around 100 km from the nearest town, Warangal and 15 km from the Vijayawada-Hyderabad highway. The price of land in Ramavarapadu, a village near Vijayawada, shot up from Rs 700,000 an acre to Rs 70 million and in Mardi, which is 15 km from Solapur in Maharashtra the price has jumped from Rs 20,000 to Rs 1 million an acre in 10 years. Such prices are bound to make fundamental changes to villages in India. Farming is hard and dependent on fickle weather changes, so farmers are tempted to sell out by these mouthwatering prices and work as day laborers instead. The disappearance of agricultural land will lead to decreasing produce which, with an ever increasing population, can only mean disaster in the near future. When children of farmers see some of their friends driving around in cars they put pressure on their own parents to sell out and enjoy a life of luxury. This is fine while the money lasts but once it finishes they will find no work unless they are educated and will take to crime. This has already happened in Delhi. Shortage of land and surplus funds, along with the NREGA, has led to severe inflation which has led to a 40% drop in savings among urban middle class. " Poor households are unable to maintain the consumption at current prices while middle income families find their purchasing power erode fast, thus having far less surplus money," said DS Rawat, General Secretary of Assocham. Soon we will not be able to afford food or shelter.
No comments:
Post a Comment