India real estate is hot

My coworker just got back from India, and it is a RE party over there. He bought one property three months ago, and it's already valued 80% higher. He got a new property one month ago and it's up 20%. In fact, non-resident Indians have been sending $20 billion a year to India (which mostly goes to buying up property). Software engineers' salaries have increased a lot (which is making them less competitive to American engineers) and they are also buying property.

I did a little googling:
"Are Indians consuming more housing than they can afford? No. In India, the ratio of the total value of mortgages to GDP is only 2%, whereas it is 52% in the United States."

They fancy gold (jewelry) more than most countries. So this increased wealth should also support the gold price.

It will be interesting to see how high and fast India can go before they hit their bust.