Unsold Housing Units in Cities

Recently, particularly during the past decade there has been an unreasonably high spurt in the value of land in the cities/towns and in the suburban areas. Vast tract of agricultural land have been acquired by unscrupulous persons. But majority of the transactions for buying land has been mainly through illegal means such as tax evasion, corruption, embezzlement, money laundering, mis-invoicing, smuggling, profiteering, capitation fees, etc. Many such transactions are benamies in nature and spirit. In addition to investment of black money derived through corruption and other above said illegal means, vast tracts of land belonging to the poor farmers were forcefully taken by land sharks with political support and bureaucratic patronage. All and sundry have entered the reality sector and as a result there has been spurt in construction activities, both commercial and housing. So many big structures have been built in around the city without proper estimate of requirements. As a result many commercial buildings remain unoccupied. But it does not have much impact on the investors because most of the projects are undertaken with black money, mainly money gained from corruption, embezzlement, money laundering, mis-invoicing, smuggling, profiteering, capitation fees, etc. So also so many housing projects have been taken up all over the city and in the suburban areas without assessing the real demand for shelter. Because of the enormous increase in the price of dwelling units, buying a house/flat has become unaffordable for most of the aspirants. Earlier when the government agencies provided houses/flats and plots at affordable cost with adequate infrastructural facilities. The troubles and tribulations of acquiring a housing unit was less and the pain involved in repaying the loans were also less. Now the cost of housing has skyrocketed and people are by and large scared. The withdrawal of the government from provision of housing facilities to the people at affordable cost has created a vacuum, which led to the emergence of the private builders and spring up of housing colonies without adequate facilities like road, sewerage and drainage facilities, besides supply of potable drinking water. Acquisition of a house is a craving for every household. Now it has become a dream. And those who are somehow able to acquire a house are only notional owners of such dwellings. A substantial part of the cost of such dwelling units (nowadays only flats) is raised through bank loans. On the average 80% of the cost of a flat is raised as loan; the repayment period of such loans range up to 30 years. By the time the loan is paid up the dwelling unit becomes obsolete and in many cases unusable. In the case of flats the owner will not be in a position to reconstruct or dispose the property on his own.