Real Estate market in India, has now become a high return avenue for making large investments, if one has a long term perspective.At the economic growth rate sustained for the 4th consecutive year at 8%, the income levels have been going up. So people have money to buy their own house, unlike earlier time.

Also, with falling interest rates,banks are lending funds for real estate at very low rates. Also, the competition among various house loan providers, is compelling them to design and offer better deals.As the demand is going up for the properties, so are the prices.Some of the properties are even showing 60-65 percent growth in one year. It is tremendous.

With the growing rate of economic growth, there are better investment avenues for the industries, as well. Large size industries are investing huge sums in developing "Special Economic Zones" in order to avail the benefits offered by the government, as well as to provide infrastructure facilities to other corporates.

Development of SEZ's also has an impact on the housing property prices in the same or nearby area.The real estate rates have only one direction to move - and that is upwards. It is comparatively, a lower risk investment area.The real estate prices in India have shown an increase of about 150% in last five years.

In last four years, its been giving an average annual return of 50%. As the income levels of individuals has gone up marginally in last 5 years, High Networth Individuals(HNI) are investing big savings into real estate. According to the banking sources, HNI have invested Rs 1 lakh crore, approximately.

Private Mutual Funds have launched many schemes in the growth sectors with a prime focus on real estate. This also includes capital Infrastructure projects like road networks, railway stations, SEZ's. Domestic realty funds have raised $4.5 billion (Rs 20,500 crores) to invest in the real estate sector in last one and a half year.

Ever since the government has partially relaxed FDI regulations in Feb 2005, FDI have also shown great interest in the real estate market in India, which is visible from the estimates published by global consultancy firm CB Richard Ellis, indicating that more than $15 billion (Rs. 70,000 crores) of foreign funds are awaiting investment in India.

There are certain road blocks in getting larger fund flows in the Indian Real Estate market. These are on account of non-transparency in market, non-availability of good quality investment projects.

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