Talking Shop: Undying lust for land

“Lust for land… the spider

spins its web and waits. A

fly comes from somewhere

and gets caught in it. The

spider pulls the fly in slowly,

devours it. That’s pure lust.”

—Kalki

Land has always been a great motivator, a great killer and a source of plunder and carnage. Take Genghis Khan, the founder and leader of the Mongol Empire, who is regarded as one of the most successful conquerors in mankind’s history in terms of lands conquered. Under Genghis Khan, the Mongols expanded and created the largest contiguous empire in global history. Similarly, Roman soldiers subjugated the Germanic people, with wealth and land being the key motivators, spurring Julius Caesar to plunder millions till he came up deuces and dumps against the invincible Gauls (at least that’s what Goscinny and Uderzo, who created the inimitable Asterix and Obelix, would have us believe). Alexander of Macedonia not only conquered most of the known world, he also spread Greek culture from Egypt to India, encouraging cultural exchange and remaining tolerant of the different lifestyles in his conquered territories.

Clearly, the spoils of war are a significant motivation for conquest. That same blood-lust continues even today in the modern world, the difference being that Genghis, Caesar and Alexander have now been replaced by land-grabbers, real estate mafiosos and dons, and even Corporate kingpins. This last kind adorns skull-wigs of yesteryear and uses today’s modern tools of the three Cs—corruption, computers and criminals—to go about their skulduggery, robbing millions of their life-savings and personal empires in the process.

From the Western World to the East and from the North Pole to the Southern tip of Antarctica, these goons are entrenched everywhere, including in our own country. Yesterday’s leaders used charisma to gain military support, crucial in their conquests while protecting their positions as rulers. Today’s honchos are nonchalant, relying on ruling regimes to further increase their ill-gotten real estate assets, while protecting their positions as Corporates. Thankfully, though, the authorities are wizening up to the subterfuge and acting fast. In India, it is the authorities and RERA (Real Estate Regulatory Authority) who are leading the charge.

Let the numbers talk

The global economic slowdown, which was only worsened by the dreaded COVID-19 pandemic, saw real estate emerge as one of its greatest casualties, with unsold inventories hitting scary highs, especially in projects close to metropolises and mega-cities. A sunrise sector and darling investment destination saw permutations go awry, with lives and careers running asunder. Making matters worse, fly-by-night operators, their Janes and Johnnies stepped in to ‘bail out’ projects. By design, deceit and deadly craft, they made personal financial killings while the urban middle class saw life-savings evaporate faster than droplets of rejuvenating raindrops in the harsh Indian summer.

Thankfully, things started turning around mid-way through the pandemic, with a massive overhaul of norms and policies under the Real Estate Regulatory Act (RERA) and the identification of duplicitous developers and builders. Massive raids, investigations and crackdowns ensued, leading to a calming in the raging Indian real estate thunderstorm. Earlier this year, RERA reported a record-breaking rally, with a 63-per cent increase in ‘new project registrations’, with the total reaching 1.16 lakh. In all, 71,307 projects were registered by November 2021, with the number increasing to 1,16,117 by November 2023. Predictably, it was Maharashtra that led the pack with 42,204 registrations, followed by Tamil Nadu with 18,915 projects.

Gaining track & traction

As for complaints—the bane of this industry for years—over 47 per cent were disposed of, up from 78,903 cases in November 2021 to 1,16,300 in November 2023. Uttar Pradesh disposed of the most complaints since the inception of the UP-RERA (44,602), followed by Haryana (20,604) and Maharashtra (15,423); the three states together accounted for 69 per cent of disposed cases. Since it was put into effect, RERA has been steadily gaining traction in handling consumer complaints among our states and Union Territories. As per data from the Ministry of Housing and Urban Affairs in end-November 2023, registration of projects and real estate agents under RERA has been increasing. In all, of the projects registered under RERA across 34 states and UTs, Maharashtra continues to lead in registrations, followed by Tamil Nadu, Telangana and Gujarat.

Indicating a return of faith, fresh launches across the top seven cities grabbed a 41 per cent share in the first quarter of 2023, marking an increase from the 26 per cent in the same period four years ago. Surprisingly, it was southern India that has led the revival, with Hyderabad emerging as the city with the highest absorption of fresh supply, 46 per cent of the 14,280 newly-launched units sold. And ironically, it was Delhi-NCR (National Capital Region) that witnessed the lowest share of fresh supply absorption, with a meagre 30 per cent of the total 17,160 units sold in Q1 of FY ’24 being new. ANAROCK Group chairman Anuj Puri explained that this was because “ready-to-move-in homes remained in favour with homebuyers because of the previously-abysmal project completion record in many regions in the country”. This trend is bucking, with under-construction, new homes increasingly finding takers, though ready-to-move-in homes continue to retain the top slot.

A long walk ahead

A beginning has been made but it is a long walk, for a scourge that plagued an entire industry for so long just cannot be wished or washed away overnight. Just a few years ago, home loan interest rates were oscillating between highs and lows in a very tricky industry space, developers were steadily raising prices of homes to match raw material and construction costs—even as sellers and re-sellers dropped rates, given the fragile economic situation during the pandemic, supply side shocks and soaring inflation. The sector faced issues of cartelisation and migrant labour, even as the withdrawal of fiscal stimulus like stamp duty waiver paid truant with strategies.

Today, there are a few positives. One, infrastructure development is being significantly funded by the Government, making it easier for people to live and work in larger cities and towns. Two, and almost as a rule, Indians have always purchased homes in locations with a strong infrastructural backbone, and progress on this front is propelling demand. Three, foreign investments are becoming regular again in the Indian real estate market as a long-term investment option, driving numbers.

End of day, though, we should all remember that as with any endeavour, it is repeated and tireless attempts that eventually lead to success and fruition. We should also remember what Jim Watkins said: “A river cuts through rock not because of its power, but because of its persistence.” We could benefit from Watkins’ wisdom and learn a thing or two from it, becoming less transient and temporary in the New Year and by making a change. As for persistence and change, well, we could do with both in hearty measure today. Happy New Year 2024.

The writer is a veteran journalist and communications specialist. He can be reached on narayanrajeev2006@gmail.com. Views expressed are personal