What is the actual problem with this development?

In my country part of the problem is taxation. Real estate gains are not taxed so we have instantiated a mini feudal system where the land owning class need not work, and many chase speculation over productive labor, and since this group is rather large this is exacerbating the demographic problems we already have with labor supply. Further it is driving a feeling of unfairness among the rural population that leads to political instability. Finally it is leaving some areas simple in lack of maintenance.