The people of Goa are facing an all-time spike in prices of real estate, making shelter unaffordable even though it is a basic need for humans. Various reasons have seen spiking real estate rates of flats and land in Goa to such an extent that a city dweller has been forced to get in interiors and migrants replacing him in towns.
The decreased FSI of constructions has worsened the situation for people and developers chopping off cost effective deals by constraining buildings from one more floor of the construction. Increase in FSI will reduce 25% of the cost on flats, which is now the will of the present government.
Today, an individual has to shell out over 40 to 60 lakh rupees to buy a shelter for himself. The real estate developers who charge this amount of money are always on the beneficial side and the client is always at loss.
Margao and suburbs are commercial hubs of Goa. Margao town attracts several professionals and skilled men from around Goa and India for employment. As commerce increases, so is the town and also the need for shelter in the form of lands, own houses and flats in buildings to a great extent. Margao town has now extended till Mandopa and Navelim on south, Raia in north, Curtorim in east and coastal areas of Benaulim and Varca on west of the town. The scarcity of settlement land has always been there in Goa and mostly in Margao due to the tall coconut trees and also the green cultivated fields. This scarcity has now caused a cross elastic phenomenon where the land scarcity has increased demands for townships and the townships all over Margao are charging huge money for flats.
An average double bedroom flat even in a moderately distant area of the town may cost you over 65 lakh rupees after paying the sale deed and service taxes. The price tag of Rs 55 lakh is overwhelmingly high for a salaried person, may it be a Goan or a non Goan. As one tries to get in closer proximity of the town, the price increases manifold. Recently 2 flats ready for possession in Housing board area of Margao were sold for a whopping 84 lakh rupees and 1 crore 6 lakh rupees each for a large flat.
Team TNV contacted several builders and developers from Navelim, Margao and other surrounding areas. They said, “The cost of construction has gone really high nowadays. Adding to that the land costs have touched all-time high. The cost of labour has increased. To add to the odds the government in the year 2013 reduced the FSI ratio of buildings reducing construction of one more floor and the cost of which is pushed on to the client.” All builders informed that the cost of a flat which is 55 thousand rupees per sq.mt at present will come down and the consumer will be able to get the flat for 38 to 40 lakh rupees only if the FSI is boosted. “Until the present arrangement is in force the cost will be 55 thousand per sq.mt which we all know isn’t affordable to common man,” they told.
Willy Fernandes who has been trying to buy a flat in Navelim area had to shell out over half a crore of rupees for it. “The prices have increased to an impossible limit now. The developers have nothing to lose as the need for shelter is ever increasing and never stopping. The people are the worst hit in this bargain” he said.
Devraj Faldessai from Cuncolim got a banking job in Verna and to avoid travelling every day he decided to go for a residence in Margao so that he has a house when he is married. To his surprise the offers and deals Devraj got in areas like Ravanfond and Davorlim itself were so high that he has to now travel all the way from Cuncolim to Verna and back. “I am a middleclass man who has just started a career. I was planning to borrow a loan and get a flat for myself. Sadly, the offer I got was Rs 75 lakh for a double bed spacious flat.
Presently there are over six major constructions and several other minor constructions going on in various parts of Margao out of which Aquem power house and Davorlim area is topping the list, closely followed by Vidyanagar and Gogol areas. Several developers have now devised price control methods by reducing the areas slightly and going into interiors of town.
The developers have shown readiness to reduce the cost of the flats if FSI is increased. Now the decision of the government can bring much needed relief to the people in need for a home.
Team TNV
