I wanted to see what the reaction of people will be when i ask them about the exorbitant pricing and logic behind the real estate. So i went to market and looked for a few properties. The pricing was so exorbitant that it simply blew my mind of.
In Rajguru Nagar, Ludhiana in an area where market is 80% unoccupied and has virtually has no customers coming in. The price of a 10×10 (100 sq. Feet) SCO is wait for it INR Rs. 50,00,000/- yes that is right 50 Lakh for a 100 sq. feet shop in an area where 80% shops are closed and only owned for resale and where there is no customer in realty.
Now if i am serious about starting a business and wanted to start a shop in this area. I will have to Shell out a 50 Lakh for shop another 10 Lakh for furnishing and another 50 Lakh for product building. Total comes to 1.1 Crore. I shell out 1.1 Crore to start a business in an area which has 80% unoccupancy and no customers.
Logically thinking I will never get back the 1.1 crore ever because there will virtually be no sales.
But when you speak to “Real Estate Gurus” they say so what just buy the shop and sell it for 1 crore in 4 years why start a business and even if you want to start a business your shop value will rise.
My question are you certain it will rise? What makes you so sure about it? In a market which has 80% unoccupancy for last 12 years what makes you think the prices will double again like it did in last 5 years of “Price Rigging” in next 4 years as well?
This is not something artificial i an writing, you do not believe me you can go check the pricing on street and ask to buy a shop there.
Now i wanted to see if prices are negotiable? No they are not. We will keep holding onto inventory and loose all interest income but not sell the shop for 1 lakh less.
Kudos for making it almost impossible for anyone to start a business and generate Jobs in a state which is dying financially for your greed by using “Price Rigging”.