REAL ESTATE DISCOVERS ITS ANIMAL SPIRIT

Record sales in residential segment and an office boom stoke investor interest for that extra yield.

- V. KESHAVDEV

HAVE YOU EVER pondered about the true intrinsic value of real estate? Contrary to common belief, there’s a richer, more complex dimension that extends beyond just the present value of future cash flows. In the realm of perception, the adage ‘beauty lies in the beholder’s eyes’ also holds true of how an owner perceives a property’s real worth.

This intangible valuation metric that, at times, transcends numbers is known as emotion, one that is captivatingly woven into the tapestry of Indian cinema. Consider the poignant tale of Balraj Sahini, a marginal farmer in the Bollywood classic Do Bigha Zameen, or the compelling pride of Amitabh Bachchan’s character in Deewar. In a memorable scene, when a realtor sarcastically tells Bachchan that he is not cut out for business as he overpaid for a building that he would have willing sold for a couple of lakhs lesser, Bachchan retorts: “Dhanda toh aap ko karna nahi aata (You do not know how to do business), Mr. Agarwal.” Even as the non-plussed seller gazes at the building, Bachchan’s character reveals he would have paid an additional ₹10 lakh, reflecting on his mother’s hard work as a construction worker at the site 20 years ago. That’s intrinsic value for you!