Speculative deals make up 50 percent of the land market
Note that this information is outdated.
Most real estate developers are buying land fourth or fifth-hand, which increases the price of such pieces of land by as much as 19 times, according to analysts on the real estate market.
Some 50 percent of deals for lands whose original purpose was agricultural and was later changed to become urban property, on which houses can be built, are speculative, the analysts said.
"Large pieces of land are bought by investors who later divide these into smaller plots, which they later sell at higher prices. Or smaller pieces of land are bought and later sold as a single, large plot" to Real estate developers, according to consultancy company Regatta's Residential Projects Manager, Sorin Lacusta, for Business Standard.
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