The roller coaster ride that Indian real estate was on will not see the same exhilarating twists and turns for some time to come. The present market vagaries have force-fed transparency into Indian real estate.

`Long-term' is the current buzz phrase for Indian analysts. While foreign investors recognize India's strong economic fundamentals and the long-term investment potential of the real estate market, they are applying caution. India continues to be very attractive, but foreign investors are now justifiably awaiting greater transparency in the economy. They are also waiting for the present market fluctuations to be resolved and the scheduled infrastructure enhancement projects to be launched.

This is a critical point. India's stringent foreign-investment rules during the 1980s and 1990s are widely cited for preventing the same levels of capital inflow that helped fund China's voracious infrastructure development. There is a definite infrastructure deficit, but the government has encouraged the Public Private Partnership route to make up for it. It is slow going, but we are seeing steady progress. However, Mumbai is not going to be Shanghai for a few years to come. This infrastructure deficit is creating significant investment opportunities in developing sectors. The economy in general will have to settle down to more convincing stability, and the property market will have to show more rationality and transparency for the fence-sitters to make their move. Meanwhile, affordable housing, industrial real estate and emerging segments such as retail warehousing and property and asset management are the sustainable growth areas in India.

The Analyst Magazine, Indian Real Estate, Infrastructure Development, Asset Management, Indian Economy, Residential Sectors, Equity Market, Risk Management, Housing Sectors, Market Dynamics.