India's troubled property developers are seeing early signs of a rebound, but high debt costs and a lack of private equity funding suggest a sustained recovery is unlikely for some time.

Enquiries for homes and offices remain strong in Asia's third-largest economy as it grows at an annual clip of 6-7%, but buyers are staying away as developers dither over sharp price reductions that could turn pent-up demand into sales.

Foreign investors, scarred by the global sub-prime crisis, are wary of investing in a property market beset with red-tape, land disputes and unclear titles. And with no clear sight of prices bottoming, like home buyers, they are staying away.

Financial Express