by Deepak Sawant 
India’s Real Estate Reality market is often highlighted by massive transactions, flashy developments, and headlines announcing the country’s ascent to a $5 trillion economy. But behind these numbers lies a set of urgent questions: Who actually profits the most from real estate deals? Why do so many people still live in slums despite decades of soaring property prices? And are the current policies making things better, or simply enriching a select few?
The Profit Breakdown: Builders, Brokers, Customers, or the Government?
Every real estate deal involves multiple players – builders, brokers, customers, and the government. Industry veteran Niranjan Hiranandani points out a stark reality: it’s the government that earns the most via stamp duties and taxes. “If a flat is sold 10 times, the government collects stamp duty every single time — even though the road isn’t built 10 times or power connections aren’t given repeatedly,” Hiranandani explains. In redevelopment projects, close to “50% of the sale price can go to the government” through various taxes and levies.
Yet, even with this wealth, infrastructure often lags behind, and half of Mumbai’s population still lives in slums. Contrasts abound as multi-crore transactions are celebrated in the media, while life for many remains unchanged.
The Middle-Class Dilemma: Is Real Estate Out of Reach?
Aspiring investors from middle-class families feel locked out as property prices in cities like Mumbai and Gurugram skyrocket. “How can an ordinary worker even dream of a home when flats are going for ₹100 crore or ₹200 crore?” The ‘miracle of real estate appreciation’ is often cited, yet entering the market remains a challenge for the average Indian.
Hiranandani advises sticking to two rules: invest in the right location and with the right people. He emphasizes due diligence — researching the builder’s reputation, the location’s future infrastructure prospects, and verifying details on the Real Estate Regulatory Authority (RERA) portal. RERA has improved customer protection, requiring builders to keep 70% of project funds in a separate account. Still, issues linger, especially with delayed handovers in places like Noida pre-RERA.
The ‘Assured Returns’ Trap
Many builders tempt customers with ‘assured returns’ offers. Hiranandani urges extreme caution, noting that “90% of the time, assured returns only work as long as the market is booming.” During economic slowdowns, these promises often fall apart unless the developer has massive capital reserves, like top-tier conglomerates.
Celebrity Cachet and Capital Appreciation
Why do people pay extraordinary amounts for properties in upscale areas? One answer: proximity to celebrities and influential people. “A home next to Mukesh Ambani or Amitabh Bachchan is more than an address — it’s a status symbol,” Hiranandani reveals. Real capital appreciation comes from long-term waits. While rental returns on residential properties cap around 3-4%, combining them with appreciation can bring 12-18% annually over a decade or more.
Policy Paradoxes: The Stamp Duty Debate
There’s frustration about the repeated levy of stamp duty. Hiranandani suggests reform: stamp duty should not apply multiple times within a short period (such as three years), as it disincentivizes mobility and increases transaction costs for genuine homebuyers.
Slums and Urban Inequality
Despite Mumbai’s reputation as India’s financial powerhouse, over 50% of its population continues to live in slum conditions. Hiranandani calls for urgent attention to affordable housing and redevelopment. Large-scale projects like the Dharavi redevelopment, now under the Adani Group, are underway, but questions linger about their pace and inclusivity.
Ayodhya’s Real Estate Boom
Post-Ram Mandir construction, Ayodhya has seen sharp increases in property values. While developers and investors celebrate, there’s growing concern about saturation and whether infrastructure can keep pace with the boom.
The Jobs and Skills Challenge
Construction is India’s second-largest employer after agriculture, but the sector faces a “shortage of 2 million skilled workers.” Improving skills, especially among unemployed youth, could directly add 1% to India’s GDP and help reduce poverty, Hiranandani claims.
Advice for Aspiring Professionals
For those exploring a career in real estate, Hiranandani’s advice is clear: Start with groundwork and build domain knowledge by working across marketing, technical, and development roles. Customer-centric thinking is key. “Deliver homes you would happily live in yourself,” he says. Long-term success is driven by trust and faith, not shortcuts.
Lessons for a Changing India
The coming decade will transform India’s economy and job market, particularly with technology and AI on the rise. Skill upgrades, lifelong learning, and raising the quality bar across professions will be essential. Hiranandani warns against the “chalta hai” (it will do) attitude and calls for a culture that values excellence at all levels, from manufacturing to teaching to public services.
He shares a closing example of humility: even his father, a reputed Padma Bhushan surgeon, flew to Germany at age 82 to learn from a younger doctor. This spirit of continuous improvement and innovation, Hiranandani argues, is the only sustainable path to personal — and national — progress.
This news blog distills key learnings from a candid conversation with Niranjan Hiranandani, highlighting the complexities, opportunities, and tough truths of India’s real estate sector.paste.txt
