In today’s bustling Indian cities, the real estate landscape is undergoing a significant transformation. What was once considered a substantial investment – a crore – now seems insufficient in the face of skyrocketing property prices. The saying “Rs 5 Crore is the new Rs 1 Crore” reflects the stark reality, reshaping the expectations of homebuyers nationwide.
Aman Gupta, Director of RPS Group, acknowledges this dramatic shift in the real estate market. He observes that one crore rupees no longer holds the purchasing power it once did. The demand for properties in prime urban areas has driven prices to unprecedented levels, making it increasingly difficult to secure a decent property within a crore.
Gupta explains, “Today, one crore rupees no longer suffice. The current environment has set the benchmark at 5 crores for properties in prime areas of average size. This transition can be attributed to rising land and construction costs, coupled with high demand driven by urbanization and lifestyle aspirations. As a result, owning a house within a budget of 1 crore has become significantly more challenging.”
LC Mittal, Director of Motia Group, shares this view, linking the transformation to the fast-paced lifestyles and dynamic urban environments. With land and construction costs soaring, the standard for a desirable property has risen to five crores. This steep increase has compelled potential buyers to reassess their housing plans and financial capabilities, as what was once considered adequate for a comfortable dwelling now falls short of the required investment.
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