Global real estate funds build hope on Indian market

MUMBAI: Escalating interest rates, perception of a real estate asset bubble and aftershocks of US subprime credit defaults have not dampened the spirits of overseas funds looking to invest in the Indian realty sector.

In the past nine months, overseas funds have raised around $2.4 billion towards investment in real estate projects; and if estimates are to be believed another $1.1 billion will flow in before the end of this year — taking the grand total to a whopping $3.5 billion. Real estate fund-raising continues to boom in 2007 following strong returns from real estate firms.