Price (per Unemployment

Year Inflation rate Interest Rate

Sq.ft.) rate

Chennai
2006 3900 4.20% 8.90% 11.25%
2007 5877 5.30% 7.80% 13.00%
2008 8844 6.40% 7.20% 12.88%
2009 11990 8.30% 6.80% 11.50%
2010 15700 10.90% 10.70% 8.00%

Price (per Unemployment

Year Inflation rate Interest Rate
Sq.ft.) rate

Mumbai
2006 17460 4.20% 8.90% 11.25%
2007 24800 5.30% 7.80% 13.00%
2008 30500 6.40% 7.20% 12.88%
2009 36194 8.30% 6.80% 11.50%
2010 44855 10.90% 10.70% 8.00%

Price (per Unemployment

Year Inflation rate Interest Rate
Sq.ft.) rate

Delhi
2006 10881 4.20% 8.90% 11.25%
2007 13751 5.30% 7.80% 13.00%
2008 17291 6.40% 7.20% 12.88%
2009 22089 8.30% 6.80% 11.50%
2010 27949 10.90% 10.70% 8.00%

Price (per Unemployment

Hyderabad

Year Inflation rate Interest Rate

Sq.ft.) rate

2006 2801 4.20% 8.90% 11.25%

2007 4101 5.30% 7.80% 13.00%
2008 5902 6.40% 7.20% 12.88%
2009 8614 8.30% 6.80% 11.50%
2010 12718 10.90% 10.70% 8.00%
 Price (per Unemployment
Year Inflation rate Interest Rate

Banglore
Sq.ft.) rate

2006 5981 4.20% 8.90% 11.25%

2007 9181 5.30% 7.80% 13.00%
2008 12242 6.40% 7.20% 12.88%
2009 16407 8.30% 6.80% 11.50%
2010 22115 10.90% 10.70% 8.00%

Inference:

Price and Inflation rate:

• The correlation between the price of real estate and inflation rate in the major cities of India varies from 0.98 to 0.99.
• This shows the presence of strong relation between the price of real estate and inflation rate.
• This shows that the price of real estate will vary significantly with the change in inflation rate.

Price and Unemployment:

• The correlation between price of real estate and unemployment rate varies from 0.38 to 0.46
• This shows that there is no relation between the unemployment rate.
• The variation in the unemployment rate will not significantly affect the price of real estate.

Price and interest rate:

• The correlation between the price of real estate and interest rate in the major cities of India varies from -0.65 to -0.78.
• This shows the existence of a negative relation between the price of real estate and interest rates.
• The increase in the interest rates will have cause the price of real estate to decrease and vice versa.
 Price &
Price &
Inflation Unemployment Price & Interest
rate rate rate

0.99 0.35 -0.7

Price &
Price &
Inflation Unemployment Price & Interest
rate rate rate

0.99 0.32 -0.65

Price &
Price &
Inflation Unemployment Price & Interest
rate rate rate

1 0.39 -0.73

Price &
Price &
Inflation Unemployment Price & Interest
rate rate rate

1 0.46 -0.78
 Price &
Price &
Inflation Unemployment Price & Interest
rate rate rate

1 0.39 -0.72

es from 0.98 to 0.99.

s from -0.65 to -0.78.

s.
rsa.