With the rise in demand for affordable housing, financial institutions and private equity funds are once again eyeing India's real estate market.

As private equity players are considering big investments in the sector, banks too are not lagging behind and have started disbursing loans to builders. Domestic financial institutions are also floating real estate funds.

With 100 per cent foreign direct investment (FDI) in real estate now being permitted, developers from overseas are also closely looking at the market. International investors such as US- based Warburg Pincus, Blackstone Group, Broadstreet, Morgan Stanley Real Estate Fund (MSREF), Hines, Tishman Speyer, Sam Zell's Equity International and JP Morgan have shown interest in the Indian market. Domestic institutions like HDFC, ICICI Venture and Kotak Mahindra too are launching funds to invest in the country's real estate market.