The slowdown in earnings growth is largely due to faster growth in expenditure, because of higher raw material costs. Another factor is the sky rocketing real estate cost, Indian real estate developers are eager to sell luxury villas. Rising real estate prices in India's cities pose a challenge. With foreign investment pouring in and a tech boom that is fueling property purchases, the Indian real estate market has been growing at a rate of 30% per annum.
Mumbai and New Delhi rank first and second in Asia-Pacific in terms of the strength of their property markets. In India, Mumbai has the highest rents at 33,907 rupees per sq m per annum.
India in a much better position in real estate industry. The real estate industry, the second-largest employment generator in India after agriculture. Real estate is now an industry, not only a business.
