Why Not MRP On Real Estate?

Question

As an engineer, i am amazed to see that land's and flat's costs are decided and driven by builders/real estate agent's will/whim for satisfying own grid, corrupt leders and beurocrats (so black money earned is digested here with anonymus titles, i.e. it is said that entire DEccan gym area of pune is purchsed by some leader etc. etc.) u get mrp on match boxes and other trifle products, but not on real estate. how can you tag a price of flat above 5000 to 50000 per sqft s. buit up (?).
if govt. really wants to eliminate major corruption and get india super power, it is only to tag mrp (by genuine people) for land and flats all over india and particularly urbon areas.
this will definitly give homes to poor and middle class families.

Answer 1

Yes. Its a fantastic Idea. Thanks for raising the issue.
World over the black money holders are now in India. They are after real estate (they are also after gold and stock markets). Their Agents being real estate brokers or investment funds headed by immoral MBA graduates (who believe only in doing unethical things).
Because of these peoples' greedy specuations, it has become extremely diificult for ordinary people to afford houses.
As a result we have, prices in real estate going to sky levels. The increase in any place is simply 3 to 4 times.
There is one solution to this.
Just like other essential commodities, Govt. should try to control these prices.
For example, if Rice was sold for Rs.7 a kg in 1990. Now in 2007 it is sold for Rs.14 only. The increase in price is 100%.
Similalry, Govt. should take the prices of real estate in 1990 as the base and fix the MRP based on the inflation index.
This should be done immediately.
Only then, the foreign companies doing immoral business, who want to loot the ordinary Indians with the help of corrupt officials and politicians, will run away.
The Indians helping foreign companies loot their own country should be declared as traitors of the country.
The Govt. instead of fixing a ceiling for the real estate prices is simply enjoying the scenes of real estate gundas looting the public.
Therefore, MRP on land prices is the need of the hour. The Govt should do this immediately.

Answer 2

Simple:

The price of Real Estate is directly correlated to the amount in which a buyer is willing to pay.

Buyers dictate market prices, not sellers. If a property is in low demand with no buyers, it doesn't matter what the seller sets the price at. Much like the stock market.

Real Estate is about as simple economics as it gets. Supply and Demand.