India is poised to be the big Asian tiger alongside China. India scores better since it's a democracy unlike it's communist neighbors, making it much more attractive to the capitalist West. Banks, financial companies, services companies, IT companies are all flocking to India. India has also opened it's door to FMCG's. Almost all major auto companies have set shop in India.
An attractive political climate, an English speaking population and an extremely well educated workforce, make India an instant attraction for companies worldwide. This has resulted in more jobs created in the country. People have a greater buying power and are using it as well. Real estate prices in India have been rising more than steadily in the last few years; major cities and IT hubs have seen prices going up in multiples not percentages. Bangalore, Gurgaon, Noida, Panchkula, Pune, Mysore, Mumbai have all seen steep escalations in price. NRI's in the US, UK, Dubai and Australia are investing in real estate in India in a big way. This is another reason for prices going up. Tax cuts on housing loans have made them more attractive to buyers. Banks and financial institutions are going all out to advance housing loans. More so because this is an extremely safe investment. Places like Bangalore now see a lull, since prices have been going up for too long. This is a good time to invest there. Places like Pune are still undervalued.
Big Indian companies like Reliance, Birla and the Tata's are all engaged in new projects in India that run in tens and thousands of crores. Mumbai's new SEZ is an attractive real estate destination.
Prices in India still compare well to other big cities worldwide. Also an ever growing population means that house prices will never take a hit, since demand always outstrips supply. companies like DLF are buying land in a big way. Hiranandani in Mumbai is another big group that has purchased in a big way in Mumbai.
As long as the Indian economic story looks good, and we continue growing 8-10% every year, the real estate boom is here in India, for sometime into the future.