Indian Real Estate Set to Double In Coming Years –

Indian Real Estate Set to Double In Coming Years – RealAcres

It was heard that a 3,475 square feet apartment in Nariman Point or the Queens Necklace area of Bombay that sold for whopping $1400/square feet.

Its truly remarkable that real estate prices in India have almost doubled since the beginning of 2003 and are set to double once again over the next three to five years. Now its not just Tier 1 cities like Bombay, Delhi and Bangalore that are seeing rapid real estate price appreciation, but even Tier 2 cities like Pune, Thane, Nasik, Hyderabad, Jaipur and Chandigarh that are seeing property prices begin to climb. So what are the reasons for the property boom in India?

#Increase in demand for both commercial and residential real estate

#Low interest rates

#Tax benefits

#Rise in disposable income

#Growing middle class

In 1995, the average cost of a home was about 22 times the average annual salary. Now the average home costs about 4.7 times the annual salary of a homeowner. The interest rates on housing loans has decreased from 18% in 1995 to 8.5% at present. In 2000, less than 10% of people under 30 owned their...