Grappling with a slowdown across segments, the Indian property market is heading towards the next phase of consolidation. Liquidity crunch in the real estate market is beginning to drive many mid-sized and small real estate developers to scrounge for cover.

Many want to liquidate their land and incomplete projects by selling them to bigger developers or private equity players even at lower valuations. What’s forcing them to take this step is a stagnant market, with property rates undergoing major correction in some cities. Around 15 deals in real estate sector have fallen through in the past two months with investors developing a cold feet, said industry officials.

World’s two of the fastest growing emerging markets India and China have significantly improved their levels of real estate transparency, an indicator of real supply and demand in the sector, over the last two years, a latest survey says. According to real estate transparency index complied by professional services firm specialising in real estate, Jones Lang LaSalle, the biggest improvers in Asia Pacific are India, China and Vietnam, all of which have received considerably greater attention from investors and corporate occupiers in recent years.

The prefix of shopping-malls just got swapped with entertainment. While shopping very much remains the staple, entertainment options within malls are increasingly becoming the numero uno draw. Gaming, magic shows and events today account for a considerable pie of mall monies.

Industry players estimate the market for mall entertainment at more than Rs 1,000 crore and growing at an average rate of 15%. “By 2010, the number of malls in India is expected to cross the 600-mark and the mall entertainment business is bound to increase at a tremendous pace to attract consumer footfalls,” says Sanjay Prabhu, GM, Inorbit Mall, Malad. Now this calls for a wide swathe of players who provide entertainment and event platforms to these malls.