The projections which was made by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) during January, the Indian property market is projected to grow at a rate of between 40 to 45 % during 2008.

This follows growth of between 35 to 38 % in the previous two years – largely as a result of massive investment which has poured into the country.

“In certain cities, yes [the boom will continue]. In the centre of towns and cities such as Mumbai and Delhi the boom is continuing, but I do not know what is going to happen with the present situation,” said Jaideep Singh, head of the India desk at Knight Frank.

In further evidence of the market’s strength, a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE), published in February, found India’s booming property sector has attracted foreign investors and figures in the top three property markets.

Following the US and China, India at presents the best opportunity for capital appreciation in the world.

Within the upcoming two years Private Equity (PE), out of the country firms venture in Indian market is likely to touch US$48bn. More than 400 such firms are in service in Indian market whose number would further scale up by another 69 or 70 by 2010, according to reports by The Associated Chambers of Commerce and Industry of India (ASSOCHAM)

According to guesstimate made by the ASSOCHAM in its yet to be published paper, Private Equity–The Money Tree real Estate sector is forecasted to be the best recipient of PE landscape in India which would give them profit margins, varying somewhere between 35% and even 50%.

In 2007, India attracted the highest PE investments, the assessment for which is projected at US$17.14bn from emerging economy together with China. With respect to India, China attracted less than 50% of PE investments in 2007, the guesstimate for which are at US$8.3bn.