“Alice: Would you tell me, please, which way I ought to go from here?
Cat: That depends a good deal on where you
want to get to.
Alice: I don't much care where.
Cat: Then it doesn't much matter which way you go.”
- Lewis Carroll, Alice in Wonderland (readers would do well remember that Alice was horribly lost)
Disclaimer: The following chapter may (or may not) be
based on real (or fictional) events. The author may (or may not) have been one
(or several) of the characters in the story. As you read, you will find a
complete lack of logic, morality, and bowel movements by the characters. You
can be assured that this story was written by someone who had either lost his
sanity, or was at least very close to the (mis?)fortune. By now you have also
realized that nothing good (or bad) will come out of reading further. We did
not want to waste your time with a very long disclaimer. But this disclaimer
serves to filter out only the most voracious (jobless) readers. And frankly,
this story is only for those half-wits (geniuses) who will read anything that
appears on their screen. We truly detest (love) such people. The only people
(goats) who might be more miserable are those who invest in Indian real estate.
Buying real estate in India is a bit like trying to purchase
a unicorn from a street vendor – except that the unicorn is invisible, has a
habit of moving around when you're not looking, and might turn out to be just a
painted donkey. Let me take you on a journey, a perilous adventure filled with
pitfalls, ridiculousness, and the occasional existential crisis.
You go to buy a pen in the market. You pay the money. You
get a pen. Sounds simple doesn’t it? Fortunately, that’s how BUYING works. Or
at least should work. Consider the following scenario.
You go to buy a pen in the market. You pay the money. You
get a pen. The pen doesn’t work. You give back the pen and ask for your money
back. But that’s not what happens. Because that would make it real. What
happens is that the salesman, a charming fellow with a smile as crooked as the
pen itself, gets another brilliant idea. A special idea. Another situation! He
offers you a new pen. A better pen. A more expensive pen. You’ve already spent
money. That’s sunk cost anyway. You think, why not throw more good money after
bad? And so you do. You get the new, better, improved, life-changing
cancer-curing world-hunger-ending pen for a discount than what it’s worth. Why
not shell out some more money and buy the better fucking pen, you think to
yourself. And you buy the better pen.
Now consider this: when you buy a pen, you pay for the whole
pen, not per centimeter of pen. Imagine if the pen seller started quoting
prices like “Rs 1/cm,” and since the pen is 10 cm long, you end up paying Rs.
10. This would be considered the peak of absurdity, right? Right?
Welcome to the Indian real estate market. Where projects
fail, men with big pens keep getting bigger, and you’re left holding your
pennies. Stupid arguments are the norm and hapless buyers can’t do anything but
learn the ways of the jungle. Because real estate is not a logical decision;
it’s an emotion. It’s perhaps the costliest emotion you will ever feel in your
life – except Indian marriages. But that’s a story for another time.
When you go to buy a 3-BHK apartment and the price is quoted
as – “Rs. 10,000/sqft for 750 sqft”. Am I expected to do the math? You don’t
have a calculator handy? Instead of an amount, can I write a math problem on a
cheque? Why is the price being quoted in sqft? Will they sell me 2 rooms in the
3-BHK? Do they expect me to say that I want only 350 sqft, so I won’t pay for
the remaining 400 sqft? But the confusion is a part of the charm. Without this
perpetual disorientation, the buyer doesn’t feel like he’s taking an important
decision.
And let’s talk about square footage, shall we? There’s
carpet area, built-up area, covered area, super built-up area, and the mythical
RERA carpet area. It’s a Russian nesting doll of real estate, each layer more
baffling than the last. There’s the carpet area that I can lay the carpet on.
Fine. That is the area I can use. But there’s a built-up area which includes
the internal walls and pillars of my flat; after all the walls are a part of my
flat, even if I am not exactly living on it. But then there’s a covered area,
which is the area that comes under a roof, which includes all walls, pillars,
and balconies. That is the area we pay municipal taxes on. But lo and behold!
There’s a super built-up area, which is the total area including the common
areas of the lobby, lift, open spaces, parking spaces etc. This is the area on
which prices are typically quoted.
The Real Estate Regulatory Authority (RERA), in its infinite
wisdom, decided to simplify things by defining the RERA carpet area as
“net usable floor area of an apartment, excluding the area covered by
the external walls, areas under service shafts, exclusive balcony or verandah
area, and exclusive open terrace area, but includes the area covered by the
internal partition walls of the apartment.”
If you’re still confused, don’t worry – you’re not alone.
The RERA carpet area is a concept so revolutionary that no one, not even RERA,
fully understands it. In the end, the area is whatever the builder tells you it
is. I dare you to bring a tape measure!
Now just because you have been quoted a price per square
foot, doesn’t mean that’s the price you pay. You silly boy (or girl, but please no more!). There are
sales taxes, registry charges, EDC charges, community corpus, advance
maintenance charges, PLC, and other miscellaneous costs.
But let’s not get bogged down by mere numbers. Let’s talk
about the true cost of real estate in India – the cost that isn’t measured in
rupees, but in your will to live. Indian real estate is as punctual as its
trains and as reliable as its weather forecasts. When a builder tells you that
construction will be completed in two years, what he actually means is that
it’ll take three years. But you can’t file a complaint before four years,
because that’s what the RERA registration says. Your case will likely be heard
well into the fifth year, by which time the place might, just might, be habitable.
And this, dear reader, is before you even start thinking
about the amenities. Swimming pools, gyms, and gardens are like the Loch Ness
Monster – often talked about, rarely seen. Even if you do get them, don’t
expect to use them anytime soon. Your interior designer, too, will take his
sweet time, delaying everything further while adding to the costs.
Then there’s the booking process. Ah, the sweet moment when
you decide to take the plunge. You arrive at the site, full of hope and dreams
of your future home. The salesman greets you with the enthusiasm of a carnival
butcher, at not what is yet a building, but to a gaping hole in the ground. With
a sweeping gesture that ends somewhere in the clouds he says,
“Look sir. Look up towards the nothingness in the sky. That’s where
your home will one day be. And you’ll have a view of a garden, a swimming pool,
a mountain range, and a giant mortgage in your name. It’s beautiful how the
system works. And you’ll be charged a beautification cost just for that.”
You squint at the sky, trying to imagine your future abode
floating majestically above, with a view of a serene lake. Never mind that the
“lake” is more of a swamp, or that your view might one day be obstructed by
another tower that, for now, is just another hole in the ground. But you’re
convinced, by the salesman’s enthusiasm or your own desperation, who knows? And
you hand over your money. Congratulations! You’ve just become a patron of the
arts, funding the builder’s ambitious project to transform that hole into your
dream home. Whether he actually succeeds… well, that’s a risk you’ll just have
to take.
Then there’s the world of TragicKicks and 9900decimals. If
you’ve ever posted your credentials on these sites, you know that they can give
the good people at Bajaj Finance a run for their money. I once told the 38th
broker of the day that the property I had posted over a year ago was not
available for sale anymore.
But if you ever happen to engage with a broker, you know
that the price you quote is always wrong - even before they have ever laid eyes
on the property. Because there will always be something wrong with it, the
position, the vastu, the locality, or simply the “vibes”. The brokers always
tend to tell the seller that the price should be lower and the buyers that the
price is too high.
You see, there’s a price quoted by the seller. But he’s
greedy. He will probably sell for a little less than the quoted price if pushed
for it. And there’s a price that the buyer has in mind. But his wife will
probably coax him into going beyond his means. After all, little Bunty does
need an extra room for studies and you need a room for the grandchildren to be
born after 25 years. Plus, where will we keep all the crappy stuff like your
mom?
So the broker’s job is to bring the buyer and seller to an
agreeable point. But the brokers are good. They won’t just push the buyer and
seller in the deal zone and walk away with their 2% commission. That’s what
idiots do. Broker’s aren’t idiots. They’ll create the deal zone wide enough to
create a big margin. And who takes away the margin? Obviously the person
handling the cash. Whom both parties trust. And who knows the market and the
property. Or at least seems to know it. Now who could that be…?
In the end, investing in Indian real estate is not just a financial decision – it’s an emotional rollercoaster, a test of endurance, and perhaps the best way to lose your sanity while maintaining a semblance of dignity. If, after all this, you still decide to buy property, I tip my hat to you, brave soul. You’ve clearly mastered the art of surviving the absurd.





