According to a report, several state governments have agreed to speed up the reforms in their respective states to improve the lot of Indian property in their cities - under Jawaharlal Nehru National Urban Renewal Mission.

As per the guidelines of this mission, the state governments need to bring in place a new statutory regime to repeal Urban Land (Ceiling and Regulation) Act will also entail rationalistaion of stamp duty which has to be brought down to 5% in next seven years.

The mission was launched in 2005 and so far state governments have shown interest to change the conditions in 23 cities which are: Hyderabad, Vijaywada, Vishakhapatnam, Chandigarh, Raipur, Ahmedabad, Rajkot, Vadodra, surat, Bhopal, Indore, Jabalpur, Ujjain, Greater Mumbai, Nagpur, Pune, Kohima, Ajmer, Pushkar, Jaipur, Coimbatore, Madurai, Asansol and Kolkata. The move clearly testifies the growing seriousness of the state governments to overhaul the conditions of their cities and this in turn will create a much supportive environment for real estate development in these places. 

The fact that value of property in India is growing by leaps and bounds is also testified by a recent survey conducted by real estate consulting firm CB Richar Ellis. The survey titled Global Market Rents earmarks that office space in Mumbai is more expensive than Manhattan. Mumbai has been ranked 15th in the list of world’s most expensive place as against Manhattan which was placed at 20th rank.

Big time foreign investments have also started flowing in the Indian real estate sector. Vancouver-based Royal Indian Raj International Corporation (RIRIC) has agreed to made an investment of nearly $3 billion in a single project in Bangalore named Royal Garden City. The total value of the project – a staggering $8.9 billion. In another significant deal Morgan Stanley Real Estate has tied up with Mantri Developers Private Ltd, a private Bangalore-based real estate developer, by investing $ 68 million. Dubai-based Emmar Properties - the largest listed real estate developer in the world – has also set its foot in India as recently it joined hands with Delhi-based MGF Developments to announce India's largest FDI in the realty sector amounting to over US$ 500 million in projects having capital outlay of US$ 4 billion.

Apart from these, other prominent global realty majors like  High Point Rendel of the UK, Edaw-US, Japan's Kikken Sekkel, Lee Kim Tah Holdings and Cesma International from Singapore are showing their interest in getting into the Indian real estate market.

Finally, the total worth of Indian real estate sector is estimated to skyrocket to $50 billion by 2008 end from $12 billion in 2005.