The BBC article points to two interesting references.
1. A white paper on Black Money in India (98 pages, May 2012) It estimates that the size of India’s shadow economy may vary from 25% to 50% of the country’s annual gross domestic product (GDP).
The shortage of residential houses in urban India would rise from 24.71 million in 2007 to 26.53 million in 2012.
Huge Transaction Costs
For both the buyer and seller of property, the taxes are too high. In many cases they can rise above 10% of the value of the property.
While the buyer pays a tax to register the land in their name, the seller has to pay capital gains on the difference between the purchase and sale prices.
Bureaucracy incentives bribery and cash payments
To complete a sizeable property project, any builder in India has to get almost 60 approvals, produce about 175 documents, and deal with 40 central, state and local government departments.
Estimates indicate it may take a builder three to four years to complete the official paperwork and get all the requisite bureaucratic clearances.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.