A significant drop can be apparently seen in property prices which is further a consequence of falling demand. Also, the bank finance is drying up and the market for real estate IPOs seem to have lost its potential. However, the situation is not as worst as it sounds to be.

There are high rolling foreign real estate majors that are ready with their deep pockets to invest in Indian real estate.

An estimated investment of USD 1.5 billion has already been committed and believed to0 cross the mark of USD 3 billion in the current year which is substantially higher, says Sanjay Dutt, Deputy MD, Cushman & Wakefield.

A multitude of property developers have largely invested in development of land banks and do not have capital to execute their pending projects.

With no bank debt, developers are facing hard blows of crunched liquidity and uncertainty clouds their plans. However, the situation has certainly brought a gush of relief for global investors.

The deals that were earlier looking to be highly prohibitive are now looking affordable, says Aanandjit Sunderaj, CIO, India Property Fund. It is not just demand from builders that is pushing fund activity.

In the past two years, they have raised high amounts from investors, the deals which are bringing healthy returns now. The international funds who have earlier bought a whopping amount of investments are still finding themselves unable to deploy.

The funds are now under pressure to set out funds as investors are asking for their returns back. Bigger funds are likely to roll in Indian real estate as the property funds become a reality, and exit routes for these funds look clearer.

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