With the Indian real estate market slated to grow 35-40 per cent in value terms over the next two years, private equity (PE) players are lining up significant investments in the segment. Led by Blackstone and the PE arm of Deutsche Bank, a host of players -including Red Fort Capital Advisors, Starwood Capital and Walton Street - are expected to invest close to US$ 12 billion combined in homes, offices, townships, hotels and other projects. In 2006, markets regulator SEBI opened up the real estate market to PE investments. The first year was a learning period. The following year saw a real correction in the market, with large incremental growth rather than dramatic growth, where stock market money went into special purpose vehicle-level investments. Experts say that in calendar 2007 alone, PE players would have invested US$ five billion in the Indian real estate sector. But there is need for investments of up to US$ 18-20 billion, which are expected in FY09 and FY10. Investments of US$ 1,400 billion are being made by Real Estate Investment Trusts globally. Hence, more global investors will start looking at Indian realty. This investment zeal comes in the backdrop of a much broader enthusiasm that PE players have shown across sectors in India in recent times. This trend is likely to continue strongly through 2010, driven by robust economic growth and attractive market valuations.