Groups like the National Real Estate Development Council (Naredco) are petitioning for new measures to make it easier for foreign property investment firms to buy in India.

Hindu Business Line also reports politicians are being asked to intervene to ease a shortage of credit for developers looking to complete building projects.

Attention has swung to the Indian government after China announced a $586 billion package for infrastructure and other domestic projects in a bid to help its own economy.

Real estate companies say people have less money to spend on buying a house, leading many to look at lettings instead.

More recent data from the company shows demand for property in Hyderabad declined by 11% to 12% between June and August.

The paper also reports the survey shows 62% of those looking for property in the city would buy a residence anywhere in the area provided it met their basic requirements.

However, Hyderabad also appears to be bucking the rental demand trend, with the number of people looking for lets in the city down 5% to 11%.

On the foundation of frustration about Pune real estate market and desperation about housing, ‘Nanded City Pune’ developed huge hope in the minds of the property buyers.

All inclusive model of Magarpatta City will also include the middle class was the hope of the majority. Thousands of 1 bhk flats was the main attraction.

Taking advantage of this Mr. Satish Magar, Chairman and Managing Director of Magarpatta Township Development and Construction Company Limited, said “Consider ‘Nanded City Pune’ as any other real estate development project in Pune. Book your 1 bhk, 2 bhk, 3bhk flat for the quality of the construction and infrastructure support we offer”.

Nowadays, there are ample buyers for such one-bedroom flats; the prestigious real estate firms have almost stopped making one-bedroom houses. One has to really make an extra effort to figure out if any well-known builder is still constructing such flats.

This trend has also spread out to the whole of NCR. Those who know the real estate market well enough will tell you that many aspiring flat owners cannot buy houses due to the high cost of 2,3 and 4 bedroom apartments.

Due to this very reason, many of them drop the idea of buying a flat. If the same people are offered a single-bedroom house, costing up to Rs 18-20 lakhs, they can easily buy that with the help of a home loan. It is really baffling to say the least, that builders have essentially stopped making single-bedroom flats despite the enormous demand.

Anil Sharma of Amrapali group also says that there is an urgent need to build a large number of one-bedroom houses in a covered area of up to 700 square feet.

Mr. Sharma said, “I know from my own experience that there are many people from my home state Bihar, interested in purchasing small and compact flats here in Delhi. But, due to non-availability of such flats, they keep on living in rented house”.

Mr. Sharma suggest a solution by stating that as nobody can force any builder to make one-bedroom houses, it is high time that the government gives some financial incentives to builders so that they feel encouraged to make one-bedroom flats.

India, china are offereing huge opportunities in real estate sector to attract the global market towards themselves as their main lender gone bankrupt, yes i am talking about US here which has been facing economic crisis and US downturn is already spilling over European countries. As a result of this sooner or later this downturn wil also spill over to Asia as well.

The prices are going high and when this down fall hits the Asia, it will spill the Asian economy as well. Its easy to say that the Asia have attractive opportunity but they have a sword as well which is being hanging on their necks for a uncertain time.

Some foremost developers based in the region say it is becoming more and more complicated for them to sell flats at launch stage due to lack of interest from speculators. This reflects on the inherent demand structure in the real estate market.

Developers attribute this to stability in prices as against the past where prices were shooting up on a monthly basis. They add that the difficulty in booking flats may delay projects and reduce their pricing power, “A year ago, if we were selling over 100 flats in a month at launch stage, we now sell only 30-40 per month. Speculators, who would earlier frenetically book flats at the pre-launch stage only, have now disappeared,” said a senior executive of a real estate firm.

Till mid-2007, speculators made quick money by booking multiple flats at the launch of a project and exiting within a few weeks or months. But now, Omaxe executive director Vipin Aggarwal says, “The property prices have stabilised with little scope for speculators to make such big gains in the short term, leading to their retreat.”

It will be the first time that a deal of this size – Pounds 138 million – will be financed in the UK entirely by Indian shares.

Indiabulls is a property and financial services conglomerate with a Pounds 4 billion market capitalisation. It is the parent group of the largest real estate company in India, Ibrel, which is handling some of the biggest commercial projects in Mumbai.

The deal, which still has to be approved, will value Isle of Man- based Dev Property at a 32 per cent premium to its closing price of 75 .5 p.

The economic boom in India, where GDP is growing at nearly nine per cent a year, has fuelled investment from international companies setting up offices in Mumbai, which has ignited the commercial property market.

Last year, Dev Property was the fourth Indian developer to launch an Aim listing of a fund that allowed investors to take part in the Indian real estate market through a UK investment vehicle.

Fitch said in a release that the ratings assigned denote that the company’s financial leverage has improved substantially over the last two years.

The rating takes into account the company’s experience in the real estate market in Northern India. While API plans leasing commercial and retail properties, a majority of its current revenue is from the sales of residential properties, it said.