The Quality of Product in Real Estate

It is true the prices of Real Estate are falling and are going to fall further. In India this trend of falling is going to be slow and steady. Fall of prices of Commercial Properties is going to be faster than the Residential Properties. People who are expecting that this fall will be only for few months be warned that this fall will be there for more time. Properties which have been designed with no or very few facilities will find that they have no takers. They will have to sell as it was sold in "khosla ka ghosla".

If at this time some organization comes forward and offers its services to puts up a standard for building, and sets up a system in which it gauges the quality of the building, will go a long way, and may in less than a few years become the name of quality. not like the government which has a dubious name of being corrupt. (e.g.) If I buy a house made by Delhi Development Authority I know that the Quality of the Material is going to be under a system which calls for Lowest Tender and on top of it the contractor has to pay to the Junior Engineer to get his MB done, then the Executive Engineer for getting the MB sent to the Accounts Department, then the Accounts Department for getting the payment, now this has tax input also in it, normal if all the gears are greased properly the payment will come back in two to three months this is earliest, now the supplier of goods who had given the Goods to the Contractor has put his interest part and as chances of the contractor not getting any payment is also there, the risk portion has also to be put in. All this ENSURES that the quality of the material is going to be very low, or should we say the lowest it can get. But the government standards are such that even after putting the worst what you get is reasonably OK deal. So after purchasing this flat what I do is do away with the plaster, pipes and electric system and put a new system in these areas, and get a reasonably livable flat, much better than the one's available made by so called colonizers or developers who are in most cases local goons who have got together and formed an association with glass offices and are selling houses which pass no test. With less than half the cement and steel in place. Taking most of the money in Black the purchaser has no option than to dance to their tunes and for those who ask for what they had been promised these goons show them their original self.

what I have said here is which everybody knows so what's new. Now if someone comes up and goes with the buyer to help him and tell him straight about the quality of the product, the people with quality will be rewarded and a premium can always be gained.

We have been taken out to see lot of properties and also their Papers. What we have noticed is that out of 100 properties, 25 have their papers forged, 60% are below minimum standards.

But these are not the reason for the drop in real estate rates