Why Are Real Estate Prices So High Right Now?

[@asun468]

Prestige selling 5.5cr 4bhk apartment on lake bed and they say it’s conservative. Like every family earning 3cr a year. Any prestige 4bhk in whitefield is above 4.5cr. They are taking away your next 5-7 years of appreciation. They have ruined the market and environment single handedly.

[@ramalingamsadasivan2835]

True that and no cauvery connection only tanker mafia and environment disaster

[@tattvamasee]

thieves ..Chor hai ye ..Politicians+Crooked Business + Local agency + create FOMO by demand/supply = high prices

[@riyainteriordesigners7]

Haha bangon truth bro...

[@jjrmech]

For the same price Dubai with better infrastructure makes India apartment pricey. Builders and politicians in nexus to create short supply

[@JaihindGM]

Only black money holders, dirty money and greedy NRI’s spoiled middle class dream of having a home

[@akshay3143]

You don’t build wealth for us, you are not doing us a favor. It’s just your livelihood, so stop considering yourself as someone who is contributing a lot

[@RamasArrow]

Real estate is not for common man. It is for people with tons of black money. Politicians, IAS officers earn crores per day. As long as they make black money they keep buying.

[@gen-zmultibaggers141]

@@RamasArrow police and judges too. In Bangalore, BBMP officials are the most corrupt.

[@amithabv1060]

Even if every ias was as corrupt as you say it is just 4000 people, politicians even less. That cannot be the reason

[@RamasArrow]

@@amithabv1060 One teacher can destroy the life of 1000s of students in his career time. IAS rules over140 cr people.

[@amithabv1060]

@@RamasArrow1. ias does not rule over anyone. Most are to junior to do anything meaningful so are most mid level officers. The way to make money is through contracts and passing undue benefits. 2 we are talking about houses being sold. The number of houses being sold are too many for just corrupt government officials.

[@herewegoagain2]

uncle sounds so frustrated. Developers/aggregators is where you can find the real greed. Real estate is at least 100% overpriced. All this splurging will come down crashing once inflation pops up.

[@prashanthparthasarathy9603]

Haha ya.. But if you look at the financiala of real estate developers, none of them make return on capital greater than cost of capital... To some extent what he says is correct, in the sense that developers don't make "so" much money as compared to land owners.. Land prices are artificially inflated which is very factual but that's how it's always been the case..

[@studyAt6]

i believe it will never happen , at max there will be 10-15% correction. Bcz initial investment of builder or developer has been made with initial high non-corrected prices.

[@tattvamasee]

thieves ..Chor hai ye ..Politicians+Crooked Business + Local agency + create FOMO by demand/supply = high prices

[@jjrmech]

Compare India sqfeet price to that if Dubai. India is pricey

[@herewegoagain2]

@@jjrmech exactly. The rental yield on Dubai is 2X to India too.

[@jjrmech]

The smile on Kamath is not buying the uncle story 😂😂😂

[@VinayKumar-kc3fp]

Kamath has been very vocal about not buying a property himself! It's no secret that it's unholy and evil sector.

[@abhishekbhagwat5285]

Guys keep your life simple. Save money till your retirement and purchase a land build home debt free. As our old generation people used to do. Even if we live on rent for our entire life we dont pay this much amount of money. I repeat stay debt free. Dont take loans. You will save money exponentially. These guys are ripping you left and right.

[@adityanahar1344]

They buy land at dirt cheap rate and sell for crores and tell that they do the hard work !!! Chacha sit at home and sing devotional songs no one is telling u to build apartments and suck up all the water from the surrounding area !! Hundreds of apartments in Bangalore are still pending and these guys ask extra time to finish projects !!!!! Finish those projects don't sit and drink tea and coffee and stuff ur stroke suffered face and tell tht buyers r getting benefitted coz of u !!!!

[@jjrmech]

Smile on Kamath is not buying the story

[@parthgarg4906]

This just goes on to show you know nothing about real estate

[@amaanshariyarr3548]

@@parthgarg4906agreed bro . Some people are just small minded socialist people. They don’t realise their entire lives are controlled by capitalism and greed. It is just the reality of the world and economy we live in. Survival of the fittest and richest . Rather be a rich capitalist and have 100 people hate on you , rather than be a socialist heard mentality

[@prashanthkamath7437]

Their hard work is in bribing government officials and managing the police and muscle power.

[@sagarsansare572]

Most developers create shitty products and still prices are high because we have poor infra city connectivity. Mumbai prices are going to see rationalisation after the metro is fully completed

[@worldofweapons1854]

Nikhil you should have shown them the average salary in Bengaluru and then the prices. we as buyers are only making builders and banks rich. there is no price control in Indian market. During covid and after covid salary hikes have not been as per market conditions. these builders are charging 2 CR for a 3 bhk with an average size of 1500-1600sqft. A person looking to buy a home has already existing expenses in terms of rent, school fees, monthly house expenses, etc. on top of that the first time buyer under the pressure and dream of owning a house if getting in this trap of builders.

[@nikunjthakkar4809]

Uncle just agreegator don't take undue credits..

[@mogver]

Greed is running high in real estate sector

[@asun468]

Uncle is frustrated with hard work and dirty work. Why doesn’t he just leaves this business 😂

[@gagankumar4338]

Money talks

[@dm5665]

Prestige 3BHK in Whitefield blr 2019 1.2 cr now it is 3.2 cr.

[@BlingKing321]

You earn and give away your money to these fraud builders

[@cks2422]

You able to sell at 3.2cr?

[@dm5665]

@@cks2422 now new prestige flat in same location and same size cost 3.2 cr.

[@bhuppi13]

Buying flats is nonsense. First of all it is overpriced, second in places like delhi ncr, the construction quality is so poor that it will not last more than 40 years. It is not something you can give to your next generation. It is just air after 40 years. You pay maintenance monthly that you'd normally pay yearly for house built on land.

[@abhinandannuli7574]

Nikhil's reaction to "dont smile" stating "she is the one smiling" reminded me of my school days where we all used to do that whenever we're caught laughing by our class teachers

[@JustChillinAtHome]

Why is everyone pretending to be in denial of the crazy property surge? The virtue signalling in this video though 😅

[@goyalsachin22]

People need to stop buying flats at stupid prices for this market to learn a lesson. Nikhil & Nitin don't own a home (rather live on rent).

[@vasudevtrivedi5221]

Well he owns a home now

[@anirudh425]

he owns now

[@FitbitUser-y5x]

hearing it for decades that people should not buy home. but we have humongous population. prices will not come down till there is a job loss or population stabilization (after 2050 )

[@shubhamsachan6419]

He owns a home go and do the proper research

[@kamranwasifify]

Mere bhai don't compare with billionaires. It's an overnight decision for both brothers to buy a big chunk of land in Bengaluru ! While it is not the same case with us

[@abhishekhota7620]

Lmao blr real estate boomed by 100% in 2ys - overinflated af. Selling 800 sq ft 2 bhks for Rs 1cr+ and all (they were half the price 2 yrs back)

[@robby1992]

its going to be 80 sqft soon. buy it😂

[@dixanshtiwari6003]

5 years ago 2bhk in Pune was 900 sqft space now 700 now they started making smaller and more pricier

[@rathore.akhilesh]

It will soon compete with Bombay with 450-500 sqft 2 bhk becoming a norm. Real Estate in India is the hub of black money. All the politicians and bureaucrats put a majority of their money in real estate, creating an artificial demand at inflated prices.

[@ayanhalder6194]

Yeah. The price is so reasonable. Which is atleast 1 cr. Home nowadays is only for millionaires. Not for those who make rs. 50k a month. Study shows only 10% in India make more that 25K.

[@princeofheaven19]

People making even 2 lacs per month cannot afford at current rates

[@abhisheksrivastava716]

@@princeofheaven19 My family income is more than 4 lac a month and I can't buy a 2 - 3 Cr house, because It would mean I will be paying for it, next 10 years of my earnings. Doesn't make sense

[@NriTamilanUSA]

I live in USA. My take home pay is 7 lakhs per month in one of the top 7 metro cities in US. It’s crazy that I can afford 5 BHK individual house in the USA with my own land (14,000 sq ft) with an office commute of 20 minutes door to door but I can’t even think of affording a 2000 sq ft flat in Chennai with much poor living standards 😂

[@NriTamilanUSA]

In Chennai, rents are through the roof (70k+ per month) if you want to stay in decent place. My take home pay in USA is $8000 per month with monthly mortgage $2500. Only 31% goes towards my mortgage include property tax, insurance etc. My kids are going to one of the best government schools free in US. No power cuts or water scarcity. My same role in India pays 1.5 to 2 lakhs per month. Almost 35 to 50% goes towards rent with no decent quality government schools. Something is seriously wrong with Indian real estate. Too much black money playing in the system. It’s extremely sad state of affairs for common man 😢

[@huntrz]

check the balance sheet, Prestige is working on 34% operating profit margin. If buyers are getting appreciation it is because builders are inflating prices over all by buying high and selling higher. They never believe in demand supply. Prestige is also poutsourcing everythign to contractor. Prestige is not doing the construction. Kalpatru is doing its construction.

[@sahith621]

over inflated market.

[@Rrrr-yh9qz]

You know Nikhil 🤔 The Indian Real Estate Sector all across the country needs a Product like Maruti WagonR - good, affordable and gives value for money! Only then will many people will be able to afford their own Flats or small houses!! Presently, the developers are mostly focusing on and offering Honda City type offerings- which is not at all affordable for majority of the working professionals (even ones earning 1 Lakh a month)!! There’s this bad mismatch! This needs to be corrected! If they can offer affordable (even 1 BHks with beautiful amenities), with WagonR like value- proposition, they will capture a Huge untapped market!!! 🇮🇳 🙏🏻

[@ramyag-w2p]

Very true

[@pulkitsharma2214]

Middle class is buying stocks and giving their money to rich. Rich buy these prime assets (Tier 1-real estate). Then middle-class cries there are no homes available. Salaried class is only taking loans for 20-30 years and losing their mind working 12hours a day. STOP BUYING STOCKS.

[@MRC647]

The carpet areas of houses are becoming smaller for the same bhk and prices are increasing much more. So definitely prices are overinflated by construction companies and now they are struggling to find buyers.

[@superchiller123chill]

As a long term real estate investor, let me tell you prices did not move for many years. If you take an average of 15 years you will see that overall gain is not astronomical

[@eshibhatt]

Oh It would have been so much more fun to see Akshat Srivastava in this table😂

[@abhisheksrivastava716]

He is an egoïstic junkie, loves monologues.

[@VineetMenon1]

Nirupa Shankar rubbing her nose at 2:51 is perfectly cued in.

[@loknathbehera6557]

Asking real estate developers "Are real estate prices are overvalued?" is like asking milkmaid "Have you water to the milk?".

[@raghav90]

Where I live in Delhi used to be a very good part of pitampura. A flat in a building of 4 floors is selling for 3 CR+ The society has school parks temple and market. But that kind of price is really bad, the parking issue is there and cars on road no space. 3 CR people should buy a house away from the people man.

[@checkpeck]

RIP for the next generation buying homes , simply cant buy it !

[@omkarpiano801]

love you nikhil❤ keep delivering excellent content

[@kartikt.s813]

lol. margins are minimal, it seems.

[@Amanyadav-yj6ed]

Maybe just on papers.

[@Amiittk]

In Bhubaneswar which is a TIER-III city they are selling units at Rs 9000-10000 per sqft of carpet area, as a civil engineer and an aspiring valuer the total cost of development including everything doesn't cost more than 5500/sqft, for a moment let us assume even 6000/sqft, so they are selling at markup of 50%, thats crazy. Real estate has become a very convienient way of money laundering and capital gains parking. 90% in India can't afford a 1 cr home and you can't get a good 2bhk in proper Bhubaneswar for that even. The only saving grace for us is the individual land parcels are still available in plenty however costly they are but we can still build our houses the way we want, its way better than buying a cheaply made flat with no regard for construction quality and standards.

[@blrblr1161]

No one will pay even 15k rent on that 1.5 crore flat in Bhubaneshwar

[@FitbitUser-y5x]

at 1.06 the elderly gentleman says flat prices does not double quickly etc. and at 3.24 he says price of flat goes up exponentially. not sure what is he trying to say ?

[@VinayKumar-kc3fp]

Good catch. :) Pulling a fast one there.

[@RajnikantRohit-p6p]

Uncle. Construction is outsource and easy work gone to peta contractors. Its the quality and the supervision to be taken care of. One PM and couple of supervisor will do it for a project.

[@Parthoo]

For all the people commenting here please take everything said in the interview with a pinch (or more) of salt. It is not in their interest to speak negatively about the RE. They are representing their business. Everything is decided by supply and demand and RE is no different. Make your judgement accordingly.

[@manojm5747]

The apartment is one such product where there is no quality certification and the longevity it will last for before it starts depreciating.... Many are getting deteriorated by 20 years leading to dilapidation.

[@shubhamsingla3078]

Yeah uncle is really frustrated with his minimal margin rant. Thanks Nikhil sir for asking the right questions.

[@shubhamsingla3078]

Oh f uncle has created wealth for evryone except himself such a noble cause 😀

[@Wealthy3691]

I think with the current prices that big builders are charging for their apartments, end users will never get an ROI till next 10 years😢 That too in banglore with no water, and people are relying on tankers. Luxury overrulled neccesity in banglore.

[@harshbaid2511]

Real Estate in India has been F'd up beyond belief due to huge corruption by babus and politicians and brokers. Imagine paying INR 75K per month in EMI for 20 years to afford a shitty 2bhk. People in Mumbai are doing it.

[@HimalayaGarg]

Government (any) helping black money not regulating real estate. People paying zero tax buying crores of property.

[@sandrokottos1060]

Having dealt with a large number of industries in my job/life, I can confidently say that real estate people (entire ecosystem), are the least trustworthy or reliable. Cannot trust them on absolutely anything.

[@dharmitthakkar5902]

Sir is saying we are creating wealth for them… my cousin is a builder and I know how much he is making profit with every project,..

[@AmitKumar-cp1oz]

What kind of dirty work they are talking about?

[@VinayKumar-kc3fp]

Funny nobody asked them. Or else they would be attacked by the mafia.

[@elv3111]

The blind side to all this argument is the poor infrastructure that government builds around it. With challenges in WASH, Traffic management, Safety, AQI, Legal hassels plus Taxes who wants to get into a pigeon hole and get trapped? Integrated township might be aspirational but who wants to get struck in traffic and floods?

[@prashants4641]

Uncle is unable to say that lot of money goes in bribe to babus to approve the project. Otherwise saying 3-4 cr homes are priced conservatively is being shameless. I did undergrad from top college and MBA from one of top college. Even after working 10 years my collegemates and I have salary of in range of 55-75 lakhs which turns into in hand salary of 42-55 lakhs that is 3.5 to to 4.5 lakhs a month. Bank provides max of 50% for home loan, it means loan amount of around 2 cr can be approved. If best can not afford it , what about general public. Real estate is biggest source of black money and place to park black money. And every one plays scientist by talking absurd things in talkshows.

[@iskalasrinivas5640]

I don't understand why entrepreneurs feel like they are doing social service. Common everyone knows you are in the game to make money. Stop pretending 😂

[@amitavabhui]

I have no words for those who has no connect … the prices are like Singapore, London with infrastructure of Bangladesh and these are conservative?

[@darylmathew2386]

The real estate market has witnessed a dramatic shift in pricing dynamics from the pre-COVID to the post-COVID era. Before the pandemic, property prices were relatively stable, with affordable housing options still accessible to middle-income families. However, the scenario has changed drastically in the past few years. Post-COVID, real estate prices have surged to unprecedented levels, putting properties in reputed constructions out of reach for average salary earners. What used to be an attainable dream of owning a home has now become a far-fetched aspiration for many. The stark escalation in property prices can be attributed to the unchecked influence of builder cartels, who have capitalized on the changing market conditions to inflate prices indiscriminately. This steep rise in costs is nothing short of daylight robbery, leaving many potential homeowners sidelined. The inflated prices not only strain buyers but also exacerbate the disparity between the wealthy and the middle class, making real estate a privilege rather than a basic necessity. Urgent measures are needed to curb these practices and restore affordability in the housing sector.

[@laitmagnani1525]

Uncle says 70 to 80% buying to stay. It is reverse. Black money being channeled through money laundering and called as investment. This and builders greed has nearly doubled prices in last 5 to 7 years.

[@kiranshivashankar2443]

Wastefellow’s . Nikhil bhai don’t call these junk

[@Carbon-Emperor]

why don't we try the same in rural areas ?

[@manorakhee]

Builders make tonnes of money respective to any other industry. I am a supplier of building material to many developers. Even though they have massive bookings they still don’t pay us in time. Our margins have been shrinking though.

[@JaihindGM]

5 times pricey, person who earns in lakhs can’t afford 2bhk

[@piyushgoyal3562]

Price side is being conversative my foot. These guys higher margins than most of the FMCG companies at least 50%. Build high rises with minimal undivided land share and sell at exorbitantly high prices. India's real estate is costlier as compared to some of European countries, in Mumbai it is more costly to Dubai. That is the landlords only make 2.5-4% on rental yield.

[@navneethsrinivas6479]

Real estate pricing in india is out of control for the amount of money we pay for a 2bhk property in Mumbai we can buy 1 bhk property in dubai plus infrastructure is very good in dubai, quality of life will be better

[@AtomicVoid95]

Obviously. Mumbai has much more demand and much less supply, than Dubai.

[@sumitbhattacharya4402]

I think real estate prices are too low, if liver transplant i am taking 50 lac for 8 hrs surgery and taking home 25 lac per day compare to that real estate prices are peanuts.

[@blrblr1161]

Sarcasm?

[@nikunjthakkar4809]

Profit are different because of exact reason uncle and aunty said ,, one does dirty work and every thing by own earns more unlike aunty who sits in ac office and does procurement and set process and outsourcing and so single digit 😊😊

[@VinayKumar-kc3fp]

There was stone deaf silence for few seconds once he used the word PRICEY !

[@ThinkingMonk000]

Chacha has hit senility...kuch bhi bolta hai 😂

[@infinitepersistence]

Guys who are buying make profits and not the builder.. Wow 😂😂😂😂

[@harshithmajeti1766]

As someone said in the comments Nikhil's smile is not buying the uncle's story !!

[@senm6115]

Shanghai is doing USD17k psf, India is still at ard $200 psf. Prices in India have gone up 3 times in the last 10 yrs, due to urban migration. Its only gg to go up cos unlike China ( 50 cities), we only hv 7 or 8 mega cities

[@kamblegaurav]

Real Estate is the most corrupt Sector. This Builder Uncle is not the only one doing hard work. Every person in this country is doing the hard work! And In Pune these Hard Workers are Selling 2BHK for over a 1 Cr and what the Buyer gets? No roads, no commectivity, no water(water supplied by tanker that too is charged monthly), no continuous Electricity supply and above all a Low Quality building construction with Leaking roof in some cases!!!

[@sv6844]

Wow such angels all our builders are right! they are just making 10-12% margins and selling where as buyers are getting 2x-3x-5x returns. Such selfless people.

[@raksi004]

We need more insight to the Indian/ Bangalore real estate market. We don't have quality unbiased content on KZbin or anywhere. We just see these real estate guys artificially pumping up demand everywhere. We need a platform which provides deeper insight in terms of actual sale price by area, active and previously sold listings, rental analysis etc,. Like Zillow or HouseSigma etc,.

[@day_hari]

All asset prices including real estate is expensive bcoz of inflation, the govt may show u BS data but real inflation is 8-9 % pa, that what is driving prices higher.

[@sagaraswani40]

Reality is that high price is going to become new normal. Thanks to inflation

[@FintechRover]

Prestige is responsible for inflated price

[@prashanthkamath7437]

Let the government of the day put the purchase of real estate on par with the purchase of equity. Get rid of the government subsidy to real estate in the form of income tax exemptions towards repayment of loans and interest on loans drawn for real estate investment. Let us check where the prices of real estate are with that.

[@ArchanaHome-l8j]

Haha prestige guy is cut off from relativity. They are launching projects starting 3 cr in bangalore.

[@A_deka]

I have worked as Accounts Manager in a real estate company. The profit margins are enormous is all the units are sold. It's like 30% -40% . Speaking in terms of actual books. Otherwise most of the Books of accounts are manipulated.

[@surajsubramoniam227]

Stocks create more wealth than real estate and are any day more liquid that real estate and also have a better value proposition on taxes. So I'm not sure what the uncle is talking about for doing so much of hard work and helping to generate wealth exponentially. Yes one can make money when they invest at a time when project is in construction phase and sell post possession...but if someone is buying to stay there, it's not an investment as long term returns ( over 10 years) is less than 7 %

[@Prashant_Pandey4]

they use that money to buy more land at cheap prices and build more apartment and you have to buy property for stay because you can't stay in your demat account and ultimately they will sell you at premium , Inshort you are giving your money to them so they can create more wealth for them.

[@sumitbhattacharya4402]

India can develop when a 2 bhk in indore is 10 cr rs atleast

[@manuvasista4387]

Wealth for others? He's saying as if he's donating, lmao, ego at full display

[@Bulldozz1-1]

Why are you asking the 1% of RE is overpriced? They own a lot and will always say no. Ask the other 99%

[@Chicagorose18]

I don’t think you guys are providing for the demand. Your projects are so expensive that the goons and the rich class are only accumulating these properties at higher rates and leave the apartments empty.for years..how many of your projects are empty.there should be a rule like the UK and all were property which are not used should be taken off by the govt instead of left ghosted

[@rashimalik2366]

Very one-sided podcast. While Nikhil tried to some extent, no one presented a contrarian point of view or challenged the responses.

[@jjrmech]

Crap! India real estate is pricier than cities with infrastructure Dubai etc.

[@Keep-valueable]

Bahai we have innovative to change the world so what to do I am not live in right palce I am VIP guy

[@shridharbhat3624]

One of our close relative bought a flat from prestige builders, within a few months of moving this year, water were bought from tanker, don't you think presitge should be replaced by Hostage builder.

[@AtomicVoid95]

Lol. How is water issue builders mistake,? Water supply depends on rainfall and the government.

[@anujmmm]

There is always a feeling of insecurity among people who are rich "on paper". Fear has been created in market and due to FOMO, there is a rush and developers are extorting much much more. Seems number of Investors are more than genuine buyers. Every project is getting sold at initial stages (very limited inventories) and mostly they are second or 3rd time buyers (investors). Many are NRIs too.

[@deepakgt3396]

How can they lie like this, in bangalore no flats are available for middle class family. their ask is

[@princemehta1443]

100 cr ke apartment bhi toh aye hai gurgaon mei

[@VedusCreative]

Chacha ab ram ka naam le kaha lekar jayega itna paisa

[@silambarasan.ssethu9367]

At last they are getting 11-12% return in good year. I have believed it 😁

[@leslinnnn]

Room filled with half of the appartment real estate in bangalore

[@viralvault]

Why they r doing builder bysiness for mere 10&12% profits (in 2-3years) . When FD is giving 16-24% in 2-3years.

[@one.mr.benjamin]

Its not that High. We are not even getting any calls. Whoever needs a plot around 4-5cents in the center of Calicut town. Please contact me.

[@kunalsharma3603]

Banglore, Gurgaon, Mumbai - Cant find a good house even with 1-1.5cr so we say cost is average. I know it's black money of politician, babus etc

[@mahendranc101]

Question is about affordability but they talk about something else

[@pxvgr]

That old guy is pure evil😈 A 200% capitalist who only cares for money. He's the kinda dude who'd say it's poor peoples fault to no to have any wealth. An opposite of someone like ratan tata!

[@varg92]

I won't be investing in Indian real estate.

[@kalyannnBH]

To be Frank , all these decelopers build Mediocre quality projects and sell in huge volumes. The kind of quality one can get for that kind money - is actually far far better. Just that customers are lazy to hunt.

[@sreejithn8291]

Please don’t take any pride 😂 That’s the biggest joke… Big builders are just creating a bubble to the common man . The loan a common man has to afford due to this is so high that it will beat all the benefits they may reap after 20years.

[@logical-brain-]

Black money. Very simple answer.

[@raviaryatube]

Lady speaking in jargons ...btw given the prices in tier 1 and tier 2 cities..to own such house.. minimum 2.5 lakh salary after tax is required

[@divyanshuvaishnav7296]

Asking a lion if the deer is tasty