By CNBC.comA few years ago, it would have been unthinkable to believe that a gold-plated dream dormitories could be so expensive.
As the world’s biggest consumer of gold and silver, India’s government has been on a spending spree to shore up its dwindling financial resources.
In 2016, the country was the world leader in the consumption of gold, with more than 8.2 tons, and it was also the world second biggest gold importer.
Its government had been spending billions to buy up properties and other assets, and the government has promised to buy $1.3 trillion worth of gold over the next three years.
This is just to pay for the infrastructure projects that have been promised, and to buy time for the economy to recover, according to a report by the National Institute of Finance.
So what is the real cost of these dream dormits?
According to a 2016 report by IndiaSpend, a research firm, IndiaSpending’s median dream rental cost in 2016 was $932, or about Rs. 7,000 ($8,600).
That was about 2.5 percent of the median household income in India.
The median annual income in the United States, on the other hand, is $1,300 ($1,900), while in India it is $4,800 ($5,400).
The median price of a dream rental is a significant fraction of the cost, according, as it comes with many additional costs that include buying property, paying taxes, insurance, etc. If we compare the price of the dream hotel, which comes with the land and water rights, and that of the apartment, which has the amenities such as a TV and internet, the average price for both is less than $500 ($1).
The average price of land is also about half the price in India, and most of it is in Punjab, which borders Bangladesh.
The median rent for a dream residence is about $1 million ($1.8 million), according to the study.
“The dream rental system is not just a cheap way to save on property, but also to buy luxury goods,” the report said.
Even the cheapest dream apartments are costing upwards of $3 million ($4.3 million), and are typically sold to foreigners, with prices ranging from $1 to $3.5 million ($5 to $9.5), according the report.
For the average household, these apartments are often purchased with foreign money, but they can be bought with real estate.
Some of these dreams apartments are located in major cities, and some are in small towns and villages, while the price can also vary depending on the size of the town and whether the owner lives there.
IndiaSpend estimated the average value of a Dream Apartments in the country at about $5 million, and estimated that there are over 100 million of them, which is about 25 percent of all the apartments in the world.
To buy the dream apartment, you need to have a real estate license, a bank loan of about $250,000, and a deposit of at least $100,000 (Rs.
4.6 crore) for the land.
According the National Gold Standard Council, a global standards body, it costs about $50,000 to buy a dream property, or more than the cost of the average house in India with a mortgage.