Developers in parts of India are pushing up property prices to try to take advantage of a pick-up in the economy due to rising wages and strong demand.

For instance, builders in Bangalore have increased prices by around 15% as they feel that rising salaries, particularly from the information technology sectors, will increase people's spending power.

According to a report from Bank of America Merrill Lynch, residential prices in Bangalore have increased by between 10% and 15% from the low prices seen in 2009.

However, property prices in the city are still well below the 2007 peak as compared against Mumbai and Delhi.

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