Expert: Michael Troy - 1/20/2007

Question
agreed but then i want to know why the property price in india is that high? y do people want to live in india?
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The text above is a follow-up to ...

-----Question-----
i need to know... the proprty prices in most cities of india are approximately equal and even more than prices in cities like sydney and new york... so why is india still called a "third world nation"?
-----Answer-----
While it is true that property values in select Indian cities have become quite high, and that there is a large and growing middle class in the country, the vast majority of the Indian population still remains in poverty.  The average per capital income is still around $500 per day and 35% of the population lives on less than $1 per day.

So while the educated classes are doing very well and there is plenty of opportunity for them, a large percentage of the population is still living in great poverty.  Certainly, conditions even for the poor are getting better and are better than many other countries.  But they are still not up to the levels of other developed nations.

I hope this helps!
- Mike  

Answer
Well, for starters, India is the most densely populated country in the world.  Therefore, land is at a premium.  Particular areas are especially at a premium because they are near areas experiencing the high tech boom, and which have good roads, electricity, phone service, Internet service, etc.  Many parts of the country do not have those things.  Therefore, the few parts that do are at a real premium for those people working in very good high paying jobs.

Also, many foreigners are coming to India these days because of the technology boom there.  A large number of Indians are highly educated, especially in the technology sector, and are working for much lower salaries than similar people in the industrialized world.  Also the fact that they speak English makes them fit in very well with American and other western countries where English is the language of business.  This has made India a very profitable place for foreign investment and starting new businesses.  Foreign businesses therefore have great incentive to start up branches in India, requiring foreign businessmen to live there.

I hope this helps!
- Mike