Real estate prices to rise..

The main reason behind price rise in real estate property in the short period of time is the migration of people. When many people migrate into a city than out, the pressure of the demand causes real-estate prices to rise. Also there is every class of buyers like big landlords, industrialists, NRI's, traders, well advanced doctors and lawyers etc. who are ready to spent 60 lakhs to crores for their dream lands. After buying these lands, they have to spent additional amount of 40 - 50 lakhs on construction and renovation to build their dream houses.There is a period of time among the housing permits and the finishing of building construction. Therefore, in the short-term, as people shift for jobs and schools, housing prices can move away from what's affordable for people in the long-term.
Rental prices are basically limited by people's income, but resale prices are not necessarily limited in the short-term, as long as people can finance their purchases..

I have some second thoughts for the reasoning of increasing prices for house. You know that the house keepers make long term agreements  for to lettings. They try to give house on rent for long term because after regular periods they rent would be increase to some extent.

The person paying rent find it feasible to pay rent for initial months but when the increment phases come again and again the price of to let has increased.

This waste of money make them think of buying a house by their own. This may be difficult but to some extent it will prove good for them.

I too agree to that, the prices without a doubt will rise with the passing of time. The thing is that if you get good service at a better cost that shouldn't be much of a problem as the cost of almost everything has been on the rise since the past couple of months and is expected to remain the same way for sometime atleast.

It is not just about being ready to pay the huge amount of money, it is also that the cost of the all the consumable and non-consumable items have risen recently and it is for this reason that the cost of the real estate property have also risen, but as far as one gets a good property the cost is not gonna be a problem to the buyers.