What Makes India's Real Estate So Expensive?

Bangalore: The cost of real estate is increasing at a fast pace across India. Property has always been a tangible asset to Indians. The real estate market in India is dynamic in nature and maintained its growth even during lethargic market situation. Most of the people look upto real estate as a good investment option, either for long-term investment or for accommodation purpose, which has led to an enduring demand for real estate sector at any given time.

For instance, "Residential housing prices in 16 cities have shown rise in prices in this quarter ended June, 2012 over the previous quarter ended March, 2012," National Housing Bank (NHB) said in a statement.

Besides, the real estate sector is expensive. Below are some facts as to why the Indian residential property prices are so high.

1) Robust growth in IT sector:

India has been a sought out destination for the IT/ITeS Companies, pushing the property prices high. As there has been tremendous growth in this sector, the job opportunities are also increasing consequently leading to increased demand in residential segment. IT professionals have become one of the major investors in the residential segment, as they have high income and can afford the price quoted by the developers, which has led property prices to go up, reports Ritu Harish of Chillibreeze.