Capital growth of land - India


Yesterday I was talking with my parents and they advised me they just sold a piece of land they bought in 2004 for Rs2900 / var (locally used unit to measure land) for Rs17,700 / var in 2009.

That is growth of 6 times or compounded at 35.2%pa. And they don't live in a very big city like Mumbai, Banglore, New Delhi where growth has been even more. I have heard similar stories from friends in different parts of India but didn't take it seriously until yesterday. Makes my 6-7% compounded growth per annum look pretty average.

The Rupee has devalued in the mean time from 1 AUD = 35Rs in 2004 to 1 AUD = 42Rs in 2009.

So still after doing some rough calculations an investment of 10K in 2004 would have resulted in around 42K in 2009 after converstions.

and there's more to come.

this corner of the world is just being recognised for what it is and it'll be on like donkey kong in 2011 when the US fails to realise any growth again next year.