Citing the example of Mumbai, Sanjay Dutt, MD, Tata Realty said that cities with the worst infrastructure have the highest property prices. Dutt went on to explain that this is because in cities with poor infrastructure, people want to live near their office, taking more expensive houses.
This was stated during the panel discussion by the Managing Director and CEO of Tata Realty & Infrastructure. He presented his point of view on the issue of very expensive real estate in Mumbai. “Real estate prices are very high in cities with the worst infrastructure,” Dutt said.
He added: “…and the reason for this is that the infrastructure is so bad that buyers are still willing to buy expensive houses so they can stay close to their offices.
He says, “Mumbai is a very good example of this. For comparison, if we are talking about Hyderabad where they have better infrastructure… You can get from Gachibouli to Shamshabad in 10-15 minutes and get there for Rs 5000/-. You can buy a house based on square feet.
Why are house prices in Mumbai so high? A sharp, frank response from the managing director of Tata Realty. pic.twitter.com/2dzJAaIzey
— Vishal Bhargava (@VishalBhargava5) October 5, 2022
He asked, “Why pay 12,000 in HITEC City?”
The video has nearly 5 million views on Twitter, where it was shared by real estate columnist Vishal Bhargava.
2,72,709 houses were sold in January-September in these seven major cities of the country, sales growth was 87%.
Mumbai ranked 141st out of 173 cities in the Global Liveability Index 2022 published by the Economist Intelligence Unit (EIU) in June this year. The living standard index took into account the infrastructure of the city along with other parameters when ranking.