Land cost

Today VY, MsAD and myself went to Adigas. Good food.

VY was mentioning a piece of land in the city. Also, we were discussing about the appreciation of land price. Over the past five years, the rate had increased 10 fold in most part of the city. Not sure if such sudden raise was realized in any part of the country in the past.

Recently we happen to know of two BHK renting out for 21k. This is not aimed at hi-society ppl but for the upper-middle class (whatever that means; when we are at it, why is the middle class broken into three? Are there more divisions?). In the same area, a single BHK was shown to a bachelor for 14k.

A year back, there was lots of demand for rental houses. Never we could see a 'To let' board as people would occupy when there is a vacant portion. However, these days we see lots of boards of vacant houses. Many are not occupied for a long time. May be the rent had shooted too high and owners are rigid in spite of no takers. Even with such trend, there are umpteen building constructed all over the city and beyond.

Let us observe the progress and see how things move. Most probably we might have to put up with this raise as the money generators like IT industries are still growing with more activities. We can expect a saturation in IT sector once the cost of living raises in par with western countries. In such case, outsourcing might become costlier than inland development/service.