Real Estate is a significant engine for growth and development of the Economy. The importance of Real Estate sector as the 'engine of growth' has been historically acknowledged in most of the developed nations of the world. In India, the Real Estate finance business has assumed significance during the recent years, spearheaded by the keen interest evinced by the commercial banks in this sector It is quite indicative of the potential that exists if the proportion of investment in Real Estate in other developed and emerging economies is considered. The proportion of investment in housing to the Gross Domestic Product (GDP) is 54 per cent in USA, 57 per cent in UK, 40 per cent in the European Union, 14 per cent in Thailand, 34 per cent in Malaysia and 4 per cent in China and 2.5% only in India in 2005 In the past few years, the Real estate finance industry has been experiencing, in some measure, the process of integration with the capital market through the securitization route. This integration has established functional links between savers, home loan borrowers, financiers and capital market investors in different regions and different components of the population.
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