Insane housing prices in Mumbai

I came across the table of values from the site http://www.narains.com/rates.htm and its astounding to see prices in Mumbai keep on escalating over the past few years. Certain areas like Santacruz have seen in prices triple in the past 3 years. I'm not able to figure out how many transactions take place at these prices. At these rates a 2 bed room apt measuring 1000 sq/ft could go for over 15M to 30M rupees in an A grade building. With 40 rupees to a dollar we are taking about 400-900$ per sq/ft. With these prices I could very well purchase in New York ..., not speak of other places in the US

Location

'A' Grade Bldg.

'B' Grade Bldg.

'C' Grade Bldg.

Cuffe Parade / Colaba	Rs.35,000 - 60,000*	Rs. 22,000 - 30,000	Rs. 15,000 - 18,000
Marine Drive / Nariman Point	Rs. 40,000 - 50,000 (NCPA Only)	Rs. 20,000 - 25,000	Rs. 15,000 - 18,000
Malabar / Cumballa Hill	Rs. 35,000 - 60,000*	Rs. 22,000 - 30,000	Rs. 15,000 - 18,000
Napean Sea / Warden Rd.	Rs. 35,000 - 60,000*	Rs. 22,000 -30,000	Rs. 15,000 - 20,000
Worli	Rs. 30,000 - 40,000*	Rs 16,000 - 22,000	Rs.12,000 - 16,000
Prabhadevi	Rs. 18,000 - 22,000	Rs. 13,000 - 18,000	Rs. 10,000 - 12,000
Bandra	Rs. 18,000 - 30,000	Rs. 13,000 - 18,000	Rs. 11,000 - 12,000
Khar / Santacruz	Rs. 16,000 - 18,000	Rs. 12,000 - 16,000	Rs. 8,500 - 10,000
Juhu	Rs. 16,000 - 20,000 (Sea facing)	Rs. 9,000 - 11,000	Rs. 8,000 - 9,000
Lokhandwala / Versova	Rs. 9,000 - 14,000	Rs. 6,500 - 9,000	Rs. 5,000 - 5,500
Powai	Rs. 9,000 -11,000	Rs. 6,000 - 8,000	Rs. 4,500 - 5,500

Mumbai Property rates per sq.ft. Updated as on 5th Jan 2008