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One of the main villains in the overvaluing of properties and the resultant slowdown is the all-round land game being played by property developers, investors and government authorities.

Developers have been resorting to large-scale land hoarding in the name of scaling up their operations, resulting in unprecedented hike in the rates of plots and constructed property. Many projects of developers have not even taken off the ground for years. The government has now put brakes on the developers out to play a similar game in SEZ projects.

But what’s a matter of concern is that even government’s real estate India agencies like Delhi Development Authority, Haryana Urban Development Authority etc have also been encouraging land profiteering. They have joined hands with banks to fund applicants of draw of lots schemes for plots such in turn encouraging land profiteering. Agencies of real estate India have been auctioning plots at unprecedented rates. Recently HUDA set a record of sorts when it auctioned a hotel site in Gurgaon at Rs 1.7 lakh/sqm.

Courtesy: Realty Plus Magazine.
April 2007, Vol. 3, Issue 8.

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