Cities with the worst infrastructure tend to have the highest property prices, said the managing director of Tata Realty, Sanjay Dutt, giving the example of Mumbai. The reason for that, Dutt further explained, is that in cities with poor infrastructure, people are willing to pay a premium to be closer to where they need to be.
The MD and CEO of Tata Realty and Infrastructure was speaking as part of a panel discussion when he offered his take on the issue of Mumbai’s exorbitant property prices.
“Cities with the worst infrastructure have the highest value of property,” said Dutt. “And the reason for that is, because the infrastructure is so poor, the buyer is willing to pay a premium to be closer to where they want to be.
“Mumbai is a very good example of that,” he continued. “Vis-à-vis Hyderabad, where they have excellent infrastructure… you can go from Gachibowli to Shamshabad in like 10-15 minutes, and buy a home there for 5000 rupees per square feet.“Why pay 12,000 in HITEC city?” he asked.
Why are home prices in Mumbai so high? Sharp, candid response by the MD of Tata Realty. pic.twitter.com/2dzJAaIzey
— Vishal Bhargava (@VishalBhargava5) October 5, 2022
The video has been watched nearly half a million times on Twitter, where it was shared by real estate columnist Vishal Bhargava.
Mumbai ranked 141 out of 173 cities in the Global Liveability Index 2022 released by the Economist Intelligence Unit (EIU) in June this year. The liveability index also took into account the city’s infrastructure among other parameters while assigning ranks.Residents of the financial capital of India have long suffered from congested roads, lengthy traffic jams, shortage of parking spaces and clogged highways.