gainvidya

No country sustains that strong growth for 8-10%. Yes Rent and property price are relative to certain extend. Since if Property prices are high people tend to rent and hence rental demand go up which stabalises the rent. On other hand if rental is going up then people tend to buy on loan and rental demand goes down bringing the rent down....

roshan.sharda

Where the demand is high as we beleive theat people with move form Rural area to urban areas, expecially big cities real estate prices can increase by more than 8-9% annualy for more than 20 years.

In India economists expect that more people will be moving to cities like Mumbai/ Delhi in coming time. The population of theese cities in expected to grow by more than 3-4% annually and with new high paying jobs and talent flocking in we feel that this is very well possible.

You can go back to Japan where cities like Tokyo& Oklahama has shown this level of growth between 1960's to 1990's.

In Chila the trend is on in Sanghai.

Not that I want the prices to rise and I am a firm beliver that there should be housing to all but this is bound to happen in free market economies whith loose lesiglaitons as in India

snimavat

You mentioned Sanghai and Tokyo.. and you may know about the real estate bubble burst in Japan before 20 years, which is still not recovering and about the Sanghai which is just about to burst

suryawork

Firstly 8-9% growth for 20 years is not sustainable without IT remaining stable for 20 years , foreign investors investing in India , domestic demand growing for that period .
Secondly high paying jobs dont last for 20 years , people are stressed out and they want to move out to less crowdy places . So if people are coming to cities , after some period you'll find lot of people moving back from cities to peaceful towns . So I dont see real estate growing at those prices .
This is a housing bubble in India . In 1998 , one such bubble burst . It won't take long time to burst this one .
Plain economics says that market prices are proportional to income along with demand . Demand reduces for overpriced items . Pls check the current US housing market scenario for this . There was also a recent article in business times on Chinese housing bubble , read it .

ssuresh83

People want huge salary , but do not want the price of the flat to increase!!
.The majority of the people's mind is to quickly finish paying the flat price. Please see the long term, 20 years might run very quickly,it will be a asset to your children, also if your children wants to study in other countries, then u have an asset to sell and get money back. otherwise you might end up getting personal loans.Dont worry MNC's wont go away, they cannot runaway from here, it may take another 10 yrs.It is best to buy an asset every 5 years.Always take responsibility and the hard path.

Blitz

What has increase in my salary to do with increasing of prices of an apartment? Why should I pay my increased salary to an uneducated filthy smelly scum of the earth called a builder? I get increased salary because I have superior brain that the builder. 20 years? And why are we not thinking about depreciation of the apartment? Or are you saying a 20 years old apartment would fetch the same price as a new one? Are you saying that it is easier to sell a 20 year old flat easily? How about analyzing in a more rational way? An EMI of 40K brings a rent of 10k (and you pay up 80L for an apartment worth 40L today) at the end of 20 years. If I purchase 20 gram gold per month, I would have 12x2x20=4.8kg of gold at the end of 20 years!

pregas

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