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.

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