Indian real estate industry is growing with a CAGR of over 30% on the back of robust economic performance of countries. After a small downturn in 2008-09, he was revived quickly and showed great rast.Tržišna value in the construction of the project increased from $ 70 billion at the end of 2006, $ 102 billion by the end of June 2010, which equates to 8.2 percent of India nominal GDP for 2009. Besides Govt. Initiative liberalization of FDI norms in real estate in 2005, the introduction of SEZ Act and allowing private equity funds, real estate, key factors contributed to this tremendous growth are "lower price", which has attracted buyers and investors not only from India but NRIs & Foreign funds are also deployed in the Indian money market. In addition, the aggressive launch of new projects by the builder is further enhanced by the positive feeling that has paved the way for rapid growth in the market last year.
Now the question is whether there is a Bubble formation in the Indian real estate market? Let's look at the recent housing bubble in the U.S., Europe and the Middle East. Besides economic factors, the key contributing factors in these bubbles are a quick rise in prices over the affordability of home ownership mania is the belief that real estate is a good investment and feel good factor, including rapid price rises is a key cause of all real estate bubble.
