A study by Lloyds TSB International (via FT) has found that India has seen the biggest rise in housing prices of any country in the world in the ten years from 2001 to 2011. In fact, emerging economies had four of the six top performers.
Real housing prices (adjusted for CPI) in India grew a staggering 284% over the 10-year period. This is almost six times the 50% rise in real UK house prices over the same period and over 10 times the 23% rise seen in the Euro area.
Annualized, this translated into a real growth of 14.4% for the decade.
While the spectacular increase is a reflection of the dramatic rise in the country's GDP - it rose 280% over the same period - it also a reflection of certain fundamental regulatory problems in a massive country where urbanization is proceeding at a very fast clip and urban land reserves are depleting very fast.
Real housing prices (adjusted for CPI) in India grew a staggering 284% over the 10-year period. This is almost six times the 50% rise in real UK house prices over the same period and over 10 times the 23% rise seen in the Euro area.
Annualized, this translated into a real growth of 14.4% for the decade.
While the spectacular increase is a reflection of the dramatic rise in the country's GDP - it rose 280% over the same period - it also a reflection of certain fundamental regulatory problems in a massive country where urbanization is proceeding at a very fast clip and urban land reserves are depleting very fast.
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