India Insight

from Anooja Debnath:

In India, what goes up must keep going up

With a faltering economy, political gridlock, high interest rates, delayed monsoons and an epic power outage that has plunged half its 1.2 billion population into darkness, optimism is a sparse commodity in India.

Just not when it comes to rising house prices.

'What goes up a lot must keep going up' was the conclusion from the very first Reuters Indian housing market poll this week. And it sounded very familiar.

Past experience shows that respondents to housing market polls - whether they be independent analysts, mortgage brokers, chartered surveyors - tend to cling to an optimistic tone even as trouble clearly brews below the surface.

That was the case before the historic U.S. housing market crash that sent prices plummeting by more than a third and triggered the financial crisis. Five years later the market is still trying to find its footing.

Spin the globe over to South Asia.

India's two biggest cities, Mumbai and Delhi, have become prohibitively expensive for average people to purchase property without stretching themselves financially. Average Indian house prices have doubled over the past five years.

from Russell Boyce:

Asia – A Week in Pictures September 12, 2010

As the anniversary of the 9/11 attack coincided with Eid celebrations, Florida based Pastor Terry Jones announced that he would burn the Koran as a protest  to plans to site a Muslim cultural centre near Ground Zero , stoking tensions in Asia.  Add into the mix millions in Pakistan suffering from lack of water, food and shelter after floods, a parliament election in   Afghanistan and a U. S. -led  military campaign against the Taliban around Kandahar -  photographers in the region had lots of raw material to work with.

Raheb's picture of relief and joy caught in the harsh light of a direct flash seems to explode in a release of tension as news spreads that Pastor Jones had cancelled his plans to burn the Koran. It has to be said that ironically earlier in the day in Pakistan US flags were burned in protest against the planned protest.

AFGHANISTAN/

 Afghan protestors shout anti U.S slogans as they celebrate after learning that U.S. pastor Terry Jones dropped his plans to burn copies of the Koran, in Herat, western Afghanistan September 12, 2010. REUTERS/Raheb Homavandi

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