If one were to do that it will release a can of worms, most of the netas and the builders would loose money overnight. Land value will crash. A nation like Singapore has been building upwards because they do not have land to spread. Now we do have land to spread and also where there is a shortage allow it to go up. Alas it is easier said than done.
Ever wondered why a city like Chennai does not have high rises? Now who wants their land value to come down.The powers that be have a strong grip on their real estateholdings and will not allow the value to fall. This is a city which still believes that the ideal FSI is 1 : 1.5 other cities are not far behind. Where as the neigh boring state like Kerala gives FSI of 3 and 5 in certain cases. The so called town planners will give you many excuses for not increasing the fsi , now if they were valid then the toughest city planners in the world exist in New York city and they give fsi up to 10.
An area like Nariman point in Mumbai started getting fsi in higher value and this ultimately brought down the price per sft from Rs.40, 000 to Rs.25 ,000 and in some cases even below. If this could be done ,then why not elsewhere, it needs strong political will and clean netas .These are in short supply.
The real reason why Telangana is still not a state is that , many Andhara politicians have property in and around Hyderabad, if it went to Telangana the political equation changes and they would be in trouble…not certainly because of any altruistic reason. Jagan Reddy is a known speculator in real estate.
Delhi has spread far and wide but then the land prices still keep increasing, will the mango party have the will power to take on the big land mafias and provide cheaper land and in turn cheaper housing? The leader clearly does not want to take them on. He would rather go after soft targets from which he gains good mileage.
It is prudent to be very careful while investing in real estate, sooner or later the economic principle of demand and supply will catch up, laws will be changed and the prices will not keep increasing as one hoped for. Who ever thought 18 months ago gold prices will come down?