IN MY INDIA.land price inflation in Chandigarh

Reading The Tribune, premium English language newspaper of Panjab i became aware that the residential plots in Chandigarh, a modern city are going for $2300 oer square yard .A Residential plot of 4000 square feet will cost One mIllion US dollars.Vow is it Japan of nineties. I remember Australia had sold its embassy for 300 million dollars .It was rumored that the land under the royal palace of king of Japan was worth more than the Island of Manhattan.

This price is not location specific.No unique location or amenities .I wonder what is happening to India.This is not Mumbai or even Bangalore.I feel very alien to these prices .America's price bubble in real estate is fresh in the memory.Is the high population density of India cause for this land price inflation.Besides, this is happening while the deflation is taking place all over the world in real estate as well as GDP.