Indian Real Estate Stocks Leading Asia Pacific List

No country in the last couple of years in the Asia Pacific region has witnessed such an amazing growth in real estate stocks as it has been shown by INDIA.

As far as the development in residential segment is concerned,
India stands next to New Zealand in the region, says the data
released in Regional Economic Outlook by the International Monetary
Fund.

The real estate stock prices in India have shot up by 14% during
1999-2006, while Indonesia has seen the second highest growth
during the same period. New Zealand tops the chart if we take
the increase in house prices into concern.

The country has seen
an appreciation of more than 10% on an average during 2002-2006.
Taking a view on China real estate stocks, they have increased
close to 8% and the prices of housing units increased by more
than 8%.

As such, both Indian and China have seen a rapid increase in
housing prices, which has been largely made possible because
of fast urbanization.

Other factors to take into account are
growing economies, surging demand for housing and commercial
space from the foreign companies, which are being bullish on
establishing their presence in these upcoming markets, says IMF.

While prices in China and India may not be showing excellence
specifically on a nationwide basis, several large cities in these
countries have undergone a paradigm shift with an annual price
increase well in excess of 10% in the last five years, said the
organization.

However, the IMF has also predicted that the residential property
boom in these cities may not sustain for long. Increasing housing
prices have made buying a house an unaffordable task for the
most. Thus, the gains in housing prices may not prove helpful
for the overall growth.

Photo: Tanunda (Hill 60) and high rise apartments, Rivervale, Western by Calistemon, licensed under CC BY-SA 4.0, via Wikimedia Commons.