"Following the National Urban Renewal Mission of the Government of India, we are bullish about financing the real estate segment. We have tied up with leading builders and offer pre-approved loans for various properties. With the merger with IDBI, we plan to consolidate our home loan business," said Ramesh N G S, retail head, Gujarat, IDBI Bank Ltd.

According to industry sources, with the liberalisation of foreign direct investment in construction and Ahmedabad getting the status of 'mega city' the real estate prices in the city are set to more than double in the next five years.

"Things are looking positive and we are bullish about financing in the near future. We are aggressively marketing our various schemes through six of our retail outlets in the city," said a senior official of Gruh Finance.

"We are offering extremely concessional interest rate at 7.25 per cent for home loans sanctioned in the fair. Further, as a bonus to all government and public sector employees, an additional concession of 0.25 per cent is offered, meaning a home loan at the rate of seven per cent, which is the lowest in the industry. Even, no processing fee or any other charge is levied on home loans sanctioned during the fair," said Raichandani.

The housing loan market in Gujarat is estimated to be around Rs 5,000 crore (Rs 50 billion), with Ahmedabad alone accounting for business of over Rs 1,000 crore (Rs 10 billion).