According to KOAPA president MR Jaishankar, despite all these factors, real estate still remains the best investment option with returns of 100 per cent or more every year.

Jaishankar said: "The stock market is risky and volatile in the short run, gold has lost its charm, bank deposits are safe but offer low yield and NBFC deposits, despite reasonable returns, have proved risky. Though investment in real estate may not always be liquid, it offers excellent potential for appreciation on medium- to long-term basis."

On a rough estimate for the current year, average returns for gold have been put at around 10 per cent, bank deposits 50 per cent, NBFC deposits 90 per cent, stock markets 60 per cent and real estate 120 per cent.

"The boom in 1995 was a combination of many factors like liberalisation andrenewed NRI interest from Hong Kong. Political uncertainty had a major effect during the following years and the slide in real estate started along with a slowdown in the economy," he said.

Lamenting on the low priority given by the previous governments to this sector, he said that in spite of a contributing of about 78 paise to the gross domestic product (GDP) for every rupee spent, `housing' has not been considered as an `industry' or `priority' for investments and lending. There have been some positive aspects of the slowdown in business, said Ian Faria, managing director, Faria Builders Pvt Ltd.

"The drop in real estate prices has helped the genuine buyer in getting good deals and the best value for money. It has also resulted in a shakeout in the industry. Speculators and fly-by-night operators have closed shop.

Only the fittest and committed developers have been able to survive,'' he said. Developers are of the view that the real estate market has matured. The decision of Assocham to set up aNational Real Estate Development Council (Nardeo) as an apex body to deal with all problems relating to development of the real estate industry in the country will bode well for it, they feel.

Dispelling the myth that more and more people are moving away from Bangalore, KOAPA officials said that a recent survey has adjudged Bangalore as the best place in the country to live and work in. With more MNCs like Ericsson of Sweden and Samsung of South Korea zeroing in on Bangalore for their software operations, there is no doubt that it still remains the most favoured software destination. Unescap, a UN body, has chosen the garden city for its prestigious city study, they added.

Most of the present infrastructure problems are due to unrestricted growth. KOAPA has, on its part, undertaken developmental work of parks, traffic lights etc. In addition, the association will release its code of conduct for builders shortly.