The fig: 4.6 Exhibits the average occupancy rates in major Cities in 2006 and 2007. The demand for hospitality sector is increasing at a high pace which in turn will enlarge the Real estate Sector. Major cities like Mumbai, Delhi and Bangalore are highly demanded. This demand – supply gap is expected to result in high level of activity in construction of hotels. India has large scope to develop in the hospitality Real Estate. Fig: 4.8 Size of the India Real Estate Sector The fig: 4.8 exhibit the present size of real estate market which is around 690 Mn. and expected to increase by 67 % in 2010. India has a huge potential in real estate market and need to be boosted accurately. If REITs come up, the real estate would be made affordable to the investors who own the best quality properties under expert management. Next, property industry and companies will have funds at cheaper cost, leading to better margins. The productivity of the sector is going to improve, with better corporate governance. The government will earn higher revenues from real estate and ancillary sectors. 4.5 Conclusion The Indian real estate sector promises to be a lucrative destination for foreign investors into the country. The continued growth of the Indian outsourcing industry provides excellent opportunities for real estate investors. The booming middle class will continue to drive the demand for housing and retail space. The Indian realty sector, if channelized properly, could catapult the growth of several other sectors in India through its backward and forward linkages. Infusion of Real Estate Investment Trust will also lead to adoption of international best practices by real estate players. Developers will get more organized, corporatize themselves and become more transparent to avail of these funds. All these factors will contribute in making the Indian real estate market more organized and structured.