maybe it is a faulty study, but according to one analyst, real estate in India is way more expensive than anywhere in the US, in terms of relative cost for all real estate and in terms of absolute cost for a lot of it.
how does this strike you:
"Condos in New Delhi, India: 2-bedroom, 1000 sq. ft. apartment for $200,000. [$200 per sq ft] (Source: 99acres.com)
Condos in Chicago, USA: 2-bedroom, 1000 sq. ft. apartment for $400,000 [$400 per sq ft] (Source: Google Housing)
Now, remember that the median income in Chicago is 50 times more than that of New Delhi."
"Agricultural land in Faridabad, Haryana (adjacent to New Delhi much like New Jersey is to New York): $250,000 per acre (source: 99acres.com)
Agricultural land in New Jersey: $12,000 per acre (source: USDA (pdf file), and for comparison its $6,000 per acre in California and $8,000 per acre in Florida)"
real estate in most of the US is overvalued right now by about 25% according to Merril Lynch, but lets pretend it isn't. let's lie to ourselves and pretend that current incomes justify current prices here. let's also pretend that RE across the world follows the same rules. that the median residence should cost about 3-5X median household incomes, the way that they do in the US today. in India today, the median residence costs ($200k from above divided by $2700 GDP/capita from the CIA factbook) 75X median household income.
for reference, if houses cost 75X GDP/capita in the US, the median house would cost $3.3 Million.
sure, India is a rapidly growing economy, but does anyone really believe that they'll move from $2,700/yr incomes to $27,000/yr incomes in the next decade or so? it'd take at least that to begin to justify current real estate prices there.
another interesting factoid from the linked article: New Jersey is more densely populated than India.
i'd be willing to guess that China is in a similar ridiculous real estate speculation situation.
i have no idea how this can possibly be true. if anyone has evidence that it isn't true, i would greatly appreciate seeing it. this worldwide asset speculation worries me.