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Wednesday, June 22, 2005

Business-Over-Heated Mumbai's Real Estate Market

What would Warren Buffet think ?

For the last two days, the local Media has been reporting the sharp jump in Real Estate Prices. Approximately Rs 380 Million Per Acre or USD 8.50 Million $ Per Acre for the NTC Mill Land in Lower Parel, Mumbai - The Biggest Realty Deal in India.

I also know of Real Estate Deals in Mumbai's suburbs where the rates have varied between USD 12 - 17 Million $ Per Acre.

Just last month, Warren Buffet (one of the richest men in the US/World) mentioned about the Real Estate Bubble in the US and how he sold a house whose land value fetched him about USD 60 Million $ Per Acre.

Considering the USD - INR Currency Exchange Rate and also accounting for PPP (Purchasing Power Parity) between the two currencies, if Warren Buffet feels that US real estate prices are high, what would be his thoughts on the Mumbai Real Estate prices of USD 8.50 Million - 17 Million $ Per Acre ?

It would be interesting, surely.


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