Although the real estate share prices are up and property developers have made money, a sizable portion of Delhi’s middle class, still finds it difficult to own a house in the city or in the national capital region (NCR), which includes Gurgaon, Noida and Ghaziabad. The housing loan interest rates in India have appreciated, causing a slowdown in the overall housing market. The rentals for office and shopping malls have gone up across India, but the hike is more apparent and vigorous in metros like Delhi and Mumbai.

Real estate companies have made this sector one of the leading sectors in terms of fund-raising in the year 2007, led by Gurgaon-based DLF, which launched an IPO of Rs.9,000 crores in the period. The Bombay Stock Exchange recognized the importance of the sector by launching the Realty Index. According to the Forbes magazine, Kushal Pal Singh, the owner of DLF, is the richest real estate baron in the world. His success has made various domestic and international investors increasingly interested in the Indian property market and the fact that the sector was liberalized for investment in 2005 has only helped the trend. The Forbes list of 54 Indian billionaires had seven real estate barons in it.

Although the government has taken various monetary steps to deter creditors from the realty segment, increased income has kept the sector at the top of the popularity charts among the investing community. Experts suggest that although housing demand has slowed, overall demand is up, resulting in a continuous increase in prices in select locations. Despite concerns by the government and other agencies over a overheating of the sector, property developers continue to be enthused about their expansion drives.