demand vs supply

The demand for renting apartments in chennai are skyrocketing and people are willing to pay more than what the owners ask for. my parents were telling me that one of our neighbour in chennai had a tenant moving out and even before they moved out, there were huge demands for the apartment and people were willing to pay more than other just to get the apartment. thats the same with buying new apartments. the more they build, the quick they sell, no matter how pricy they are. that's inflation best explained.