Will Owning House In Metro Cities Remain A Dream For Majority?

11-10-2024 11:02:00   Osprey Nest Team   

Will Owning House In Metro Cities Remain A Dream For Majority? or many individuals, especially in metro cities, the dream of owning a home feels increasingly out of reach. As these urban centers attract a constant influx of job seekers, demand for housing continues to soar. However, the supply often fails to keep pace, and when it does, prices remain prohibitively high for the average person. This growing gap between what most can afford and actual property prices creates significant barriers to homeownership.

Several factors contribute to the soaring costs of housing. In cities like Mumbai, geographical constraints play a major role; surrounded by water on three sides, the city can only expand linearly, which limits available land for development. The presence of ecologically sensitive areas further restricts growth, resulting in a trend toward vertical development that drives construction costs upward.

Additionally, high land costs and capital expenses compound the issue. Developers face substantial premiums for various local government requirements—development charges, fire safety premiums, and more—which can account for 12-18% of the final sale price. These costs are ultimately passed on to buyers. To exacerbate the situation, buyers must also contend with additional expenses such as GST, stamp duty, and registration fees, which can raise the total price by approximately 19%. Rather than being treated as a basic necessity, housing is increasingly viewed by authorities as a revenue source, placing a heavier financial burden on those seeking to fulfill their dream of homeownership.