Real Estate in India

Do we have a bubble situation here? I don't know about other cities in India, but real estate investments in Bangalore have returned more that 50% in the last 2-3 years. Some would argue that it is close to 100% . I don't know. Really don't. Few of my friends are contemplating investing. I am not so sure. But sounds very rosy and exuberant. One variable I have not yet researched is the interest rates - I think they are quite low. I have to verify the data. What will happen when the interest rates start rising? Would this reduce the demand and thus prices? Are there too many people (read NRI's) just "investing" and thus creating an artificial demand? Only time will tell if the exuberance is irrational or not.

Real estate consulting firm CB Richard Ellis conducted a survey to determine global market rents. The survey has ranked Mumbai as the world's 15th most expensive place, Manhattan, the 20th, while Delhi stands at the 32nd position. CBRE's office space in Mumbai is more expensive than Manhattan. Interesting!!