Foreign investors have remained bullish on India's housing, real estate and construction sectors in the last two years, undaunted by scarce global financial resources.

Foreign Direct Investment in terms of inflows into equity in the Indian construction and realty sectors have seen a sharp rise from $1.19bn in April-December 2007 to $5.6bn in the first three quarters of the current fiscal, as per the official data.

In March 2005, the government had liberalised the foreign investment norms with a view to catalysing investment in the realty sector.

The Economic Times