The Impact of Rising Land Prices on Real Estate Quality in India
Nitin Killawala, director of Group Seven Architects and Planners, discusses the significant influence of land prices on the real estate industry in India, highlighting the challenges and improvements in construction quality.
Real EstateLand PricesConstruction QualityUrban DevelopmentInfrastructureReal EstateOct 17, 2024
According to Killawala, there is a vast difference in land prices between megacities like Mumbai and smaller cities like Baroda. This discrepancy significantly impacts the affordability of real estate projects. For instance, land in Mumbai is much more expensive compared to Baroda, making projects in the former city considerably more costly. The local government and their policies play a crucial role in shaping these prices, especially in metros like Mumbai, where obtaining approvals and utilizing the full Floor Space Index (FSI) can further escalate costs.
Killawala also noted a shift in focus within the real estate sector. Developers are increasingly prioritizing real estate agents over architects in project planning and sales. This shift can sometimes lead to a lack of attention to the architectural and design aspects of projects, which can affect the overall quality and aesthetic appeal of the developments.
However, there have been significant advancements in technology, materials, and construction techniques that have improved construction quality, even in smaller cities. These improvements have helped to maintain a certain standard of quality despite the financial pressures from high land prices. Despite these advancements, Killawala expresses concern over the diminishing sense of responsibility and workmanship among construction workers. He attributes some infrastructure failures to negligence rather than intentional cost-cutting.
The real estate industry in India is at a crossroads. While technological advancements and better materials have enhanced construction quality, the high cost of land and the focus on sales over design can undermine the overall quality of real estate projects. It is crucial for developers, architects, and local governments to collaborate and find a balance between affordability and quality to ensure sustainable growth in the sector.
Frequently Asked Questions
How do land prices vary between cities in India?
Land prices in India can vary significantly between cities. For example, land in Mumbai is much more expensive compared to smaller cities like Baroda. This discrepancy impacts the overall cost and affordability of real estate projects.
What role do local governments play in shaping land prices?
Local governments play a crucial role in shaping land prices, especially in urban areas. Policies and regulations, such as obtaining approvals and utilizing the full Floor Space Index (FSI), can further inflate land costs in cities like Mumbai.
Why are real estate developers giving more importance to agents over architects?
Real estate developers are often prioritizing real estate agents over architects in project planning and sales. This shift can sometimes lead to a lack of attention to the architectural and design aspects of projects, which can affect the overall quality and aesthetic appeal of the developments.
How have advancements in technology and materials improved construction quality?
Advancements in technology, materials, and construction techniques have significantly improved construction quality, even in smaller cities. These improvements help maintain a certain standard of quality despite the financial pressures from high land prices.
What are the concerns regarding workmanship and infrastructure failures?
There is a growing concern over the diminishing sense of responsibility and workmanship among construction workers. Some infrastructure failures are attributed to negligence rather than intentional cost-cutting, which can undermine the overall quality of real estate projects.
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