Real estate business is flourishing in india. Especially in TamilNadu. Even in remote rural areas like my home it cost Rs.50000 per cent of land (i.e. US$1250). Reason for this growth is due to the entry of new companies local as well as MNCs. For example Suzlon energy company (Manufacturers of Wind Mill Turbines) bought around 500 Acres in Karumathampatty a small village in coimbatore. They bought an acre Rs.1 Crore. Extraordinary price. So many millioinaires created. Another Reason is wealthy people want to invest their money in assets that give good returns and dont lose value over time. Stronger and growing economy of india is also a reason.