There is a huge real estate mafia which holds prices unrealistically high in Mumbai. I have no grievances – but it is mispricing all the services available in Mumbai.
A trust which owns a school in Santacruz, Khar, Ghatkopar or Chembur (just 4 suburbs) can charge whatever fee it wants. Does it mean the teachers are paid well? NO. The answer is no.
Schools, hospitals, nursing homes, hotels….are all getting a HUGE RENT – using the word economists like. Rent is got by somebody who has occupied a position where a new person cannot come. So a bribe by a government officer is also rent.
Now this has meant complete shutting out of supply of schools, colleges, hospitals. Since it is difficult for children to travel people pay exhorbitant fees for bad schools – proximity of rich people is good for a school. To justify the fees the schools shifted from SSC to CBSE / ICSE ..and then to IB. Doctors are taking patients to Pune / Hyderabad for surgeries – a case of INTERNAL medical tourism?
A hotel situated just outside the railway station – immaterial of whether it is VT, Thane or Malad can charge such a huge premium it is not funny.
One day when prices in Mumbai falls (most top heavy things fall, do they not? look at Tokyo) all these hotels, hospitals and schools will have to reprice.
However if the fall in price is because the middle class shifts to Pune, Baramati and Hyderabad, then prices will not just fall, it will crash.
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