The Mafia of Real Estate World in Delhi-NCR and India
Have you wondered anytime that how can someone give his hard-earned money and decades of life and future to the builder and bank, just to buy a poor property?
Does anyone see the fake, phony values of growth/investment in today’s Indian culture i.e. of having a dream home/place Vs. the real, hidden truth behind it?
Why there is no law to punish these thugs of property who are looting people salaries for next 20+ years?
Why not everyone see it?
This is my today’s experience when I went to buy a Small Office Space in a few most happening territories and newly build Malls of Delhi & NCR – Shopprix Mall, Shipra, Magahgun Malls, Angels Malls etc.
There were a many shop options for me as I was searching all types of showrooms at various floors.
Interesting fact to observe is that the Brands that used to be there years ago has now completely left the places with torn snippets of their branding, conveying stories of their death in the heart of residential colonies.
1st option # I called to Mahagun Mall Shop owners. These owners of the showroom made an investment to the mall around 3-4 years ago. They wanted to sell their shops ASAP and one of them also said that his experience of investment is a ‘Tremendous Loss’ for him. He wanted to give me the space at a throw away price but as the size of the showroom was too big so I went on seeing another options.
2nd Option # I called a shop owner at 1st floor of the Mall and the shop owner offered me the shop at Rs. 10,000/ sq feet (negotiable). It was a quite high rate to me as few months ago the manager of the same mall offered me the shops rate at 6-7k per sq feet pricing.
3rd option # I called another shop owner at same floor (adjacent to same shop), his demand was Rs. 16000/sq feet. I asked him his price is higher than other shop owners. He replied “the rates have gone higher”. His confidence was awesome despite his shop was empty. It actually doesn’t matter him.
4th option # I called the same mall manager for his ‘yet to be sold’ shops who I also called a few months ago and his rates were at Rs. 10k per sq feet from the last time 6k per sq feet.
The strange part is that the rates are just rising and rising as in proportion to time despite many businesses have stopped working and further leaving lesser possibilities of sale. Only McDonalds and Big Brands are stable as they work at a long duration lease and large space association with Malls. One good reason to keep increasing and portraying the prices higher despite losses is the same mall owners are further constructing their new shops/malls at far off places and selling it with same hopes and convictions to innocent buyers.
After a many calls to a many other shop owners, I found out that all these shop owners who have invested in these malls with a future scope is suffering tremendous loss i.e. in absence of no rental income, no buyer since last few years. They are just waiting for a innocent valuable customer whom they can trap to take them out of this wrong investment.
All these glittering malls of Delhi who are placed in between heavy residential colonies, growing their rates just like an AUTOMATIC RATE-0-METER, without any basis, is actually a big psychological trap. All these so called investors are victim of this big PROPERTY MAFIA who is creating a false perception of success in the eyes of those who have invested their money in such impractical properties on false hopes. And now further carrying the same false hopes to those who are thinking to invest
Most of these shop/showroom owners were dying to bargain me. They knew their investment has been a failure but hoping that they would find a *kindness* like them, who will take them out of their wrong decisions.
The real real-estate psychological trap then started with me – As I have already made a many calls to shop owners with a serious interest, my mobile number went to some unknown persons/consultants via these people and I immediately received a call by a consultant during the survey.
He asked me – “If I am looking for a Shop in the Malls”, I said “Yes”.
Distracting me of my curiosity of his identity – he came straight to the point and put a highest bid of Rs. 16,000/sq feet of my requirement. When I asked him that this is not the perfect bid as there are many shops I have surveyed and a plethora of shop owners and even the mall manager who has offered me a lowest bid at some better locations. Then he started convincing me of various changes in last 3 years in the community as it is densely populated now, more grown-up in purchasing power and is the most happening place at centre and taking all these factors to his credit and success of his shops/flats.
As an end user and experience holder of few years in my business, I told him that that an investment of Rs. 48 lakh in such a specific smaller space of 300 sq feet with maintenance expenses, salaries to staff etc. is a forever loss. As a business owner and analyst, I factually conveyed him and asked him to tell me any retail business that can bring back my investment in 10 years or is worth of such ROI. I told him that this shop is basically for my retail store cum office chains and there is none business so called in Delhi that can give such great return and profit in long run in comparison to investment it demands. So factually speaking in the end this is going to be a wrong investment and waste of money/time for me.
Practically speaking, even if I count it just as a retail store investment – this decision is still hard in all sense as anyone who would do such investment will be forever trapped to earn his bit of margin. He will keep working forever his/her life for Malls, Builders, commission agent and in making, returning money for them. The heavy costs, installments will keep him busy working to fulfill the same at-least. The price at which people used to buy buildings, schools and restaurants sized space is the price for a kiosk shape 300 sq feet sized shop today, is not something one can expect to grow higher profits but hardly maintain his costs. I told him that a good and lavish ROI at such space is only possible unless I be a thug.
And then he started convincing me of ‘investment value’ in such property which is no way an investment but a re-trap for me too. Investment? a property which is already 300% over-rated, is there any investment scope in that?
It was the height of my patience as I felt him trapping me with foolish logic and reasoning. To know his opinion of truth – I bluntly expressed him the hidden fact that their own shop owners have confessed me that they are in loss via such investments and they believed that nobody can actually earn or at heart can actually think this as an ‘investment’ or ‘good business opportunity. And still you are raising the rates of such property every day to create such false notion for your buyers, is none other but a fraud? Creating false hopes is too much. I told him that only a fool or innocent person can be their ‘hope’ but it’s not a right path for a business.
He immediately offered me the property at Rs. 34 Lakh and told me that the owner of the property has wanted him anything above Rs. 34 lakh.
and…my last hope of ‘respect’ to the real estate world was also crushed today.
This is the truth of India’s real estate and consultants, trapping your hard earned money by shifting rates with their wish, is the actual ground reality. They loot your money without any principles, they want to make Rs. 10 Lakh as profit from a deal in-genuinely. They say 5 to 10 lakhs as they are saying 5 to 10 thousand, is a disrespect of value and ethics in business. It’s much beyond sheer un-professionalism, is a much bigger crime to make fool of people aspirations. The fact is that Property Rates have not risen but it’s a Mafia and Nexus to Trap people by creating false hopes and then exploiting hopes.
With a very small experience in my business, I was able to make out the trap but those who are in Job are swayed by aspirations. I have been through these heavy losses, malls rent & installments, maintenance costs etc. These are the true reasons for a financial failure of any business or a person. I personally knew a many friends and students who are struggling a simple life style but holding a property with a false hope but none buyer.
The Mafia of Real Estate has exploited the common man ‘desire of dream-success and security’ with false hopes of Investment, is eventually a lifelong punishment for them. All these false hopes in Delhi today has taken investor and builders to even 200 kms ahead from Delhi-NCR i.e. to places as Muzaffarnagar, Hapur, Meerut to buy such property they would perhaps never need or use?
I see that the time is not far when after few years there will be no place to buy/construct in and around Delhi-NCR (except Re-sale) and all buyers would be only living with high rates certificates by these real estate persons, with empty shops/flats, finally to be used by someone who needs it, if and but only, at a practical rent 🙂
Love and Regards