Is Gurgaon becoming the new Amrita Shergill Marg?

livemint.com:

₹100 crore, symbolizing the zenith of achievement. Yet, India's rich and mighty aren't the sole purveyors of such extravagance. A recent Gurgaon apartment sale, as per reports, touched the ₹100 crore mark.

Spanning a lavish 10,000 sq ft, the unit's cost per sq ft stands at a staggering ₹100,000. Still, it is only an apartment that isn’t located in a posh Delhi locality. What’s going on? No, Gurgaon is not about to rival Amrita Shergill Marg.

The apartment's price point mirrors the larger narrative: the escalating value attributed to scarce land and the skewed growth narrative in India, a reflection of certain policy gaps. Indeed, while India sprawls across vast terrains, optimal urban development remains a challenge. As a result, the real estate landscape witnesses surging demands for larger properties, with tepid interest in homes designed for the economically disadvantaged.

This trend parallels the sluggish momentum in entry-level car sales. Together, they sketch a growth trajectory that, unless navigated with discerning policies, might curb India's growth potential. There are three trends we can note in the data points above.

One, income growth at low levels of income, those who have emerged from poverty and seek to rise above their status and enter the middle class, has become stagnant. This would account for the scant sales of small passenger vehicles and the lacklustre demand for affordable housing. At the same time, there is the rise of a class of people who can afford to spend big money on themselves.

Big spenders are, of course, a boon for the economy. The more they spend, the greater the stimulus they provide to the economy. And, finally, the land on which to create new built-up area is getting scarcer by the