By Dr Sanjay Murari Chaturvedi
Real Estate is not an industry in India. Therefore no specific source can confirm the Trade Transactions nor any capitalization of markets. There is no Authority nor any agency which records the transactions, value under transactions either in rural markets or urban bazars.
Niti Aayog, Housing Ministry or Urban Development Ministry are not in a position to predict how much short we are or demand assessment for micro markets.
Can an isolated transactions reported in Media be the threshold limit for any property price or trend in the urban centre? Why media do not report any lowest deal instead? Will the sponsored news and so called research papers predict the future price of real estate in cities based on historic data? If say x number of registration were recorded in Mumbai in the month of October, will it guarantee that in November it will be the same, lower or higher numbers. And the transaction recorded in the Agreement for Sale will be escalating to new high or market dynamics will arrest the price at certain level? This is nothing but quantification of human behavior on buying and selling of properties which cannot be having any parameters or based on historic price trends.
Some Prop-tech claims to have validated the primary data on their research hypothesis. The primary data, as such, never have been recorded by any Authority or government agencies for entire nation not even recently enacted RERA Authrotities in 29 states and UTs. Sub Registrar of Assurance need to record and register the documents. Revenue Departments collect data from such registration. These registrations also includes, inheritance of properties, family partitions, gifts, mortgages, resale and second sale. Besides this, we all know that there are cash involved in the transactions and it cannot be standardised in micro markets. Hence arriving at property price on registration of documents is foolishness and no methodology can validate it.
Isolated real estate deals like some industrialist or fortune 500 company director purchased a flat worth 600 cr may not be the indication either for property price trend nor it can indicate any transaction trends in the cities.
