Plot of land constitutes 90% of the cost of the house

Mr. Deepak Parekh, Chairman, Housing Development Finance Corp. (HDFC) said, '' Faulty land policies are preventing development of affordable houses in urban areas, which are likely to witness huge demand for residential premises in the times to come"

Mr. Deepak Parekh also said, “In India, land policies have created distortions that have led to inordinate high prices in many key metro cities.In places like Bombay and Delhi and some large metros, land constitutes 90% of the cost of the house. If  90% is the value of land, obviously it signifies we have wrong faulty land policies; and with those land policies, you can not have a solution for affordable  (low cost) housing“
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