Indian property struggles as funds stay away

Indian property struggles as funds stay away

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By Prashant Mehra & Jasudha Kirpalani
MUMBAI (Reuters) - 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 percent, 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. 
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