Property developers turned billionaires this year as they mopped up money from the bourses, but the middle class failed to find a decent place to live in cities after interest rates hardened amid firm real estate prices, causing a slowdown in the housing market.

However, the office and shopping mall rentals continued their upward trend. The pace was more vigorous in Delhi and Mumbai, which got reflected in a consultant’s report that put India’s financial capital at second place in the list of most expensive office markets in the world with Delhi at eighth. The real estate industry, pegged at USD 16 billion and estimated to reach USD 60 billion by 2010 with a growth rate of 30 per cent, entered Dalal Street in a big way and floated 12 public issues in the year which helped it to emerge as a leading sector in terms of fund raising.

Leading the pack was India’s biggest realty developer DLF, which launched the country’s largest IPO of over Rs 9,000 crore, followed by HDIL’s Rs 1,700 crore and Puravankara Projects’ Rs 850 crore. Bombay Stock Exchange launched “Realty Index” to recognise the growing importance of the sector.

The sector’s strength is evident from the fact that there are seven real estate barons in a Forbes list of 54 Indian billionaires. DLF’s K P Singh, Unitech chairman Ramesh Chandra and Omaxe’s Rohtas Goel were among the richest Indians.