Last year saw some high profile private deals taking place but today stung by a slowdown builders have started giving in to lower valuations and such deals are being lapped up as good bargains, at least at the initial stage.

NDTV has learnt that Bangalore-based Puravankara is raising substantial cash for its middle-income housing project arm at a 12-15 per cent discount to its earlier expectations.

Puravankara is close to raising Rs 800 crore from 4 foreign funds. The company is also planning to sell 40 per cent in its subsidiary Provident Housing and Infrastructure which is lower by almost Rs 100 crore than the initial plan.

On this issue the company's management, however, declined to comment but NDTV has learnt that the term sheets are signed.

Realty investment banker Hardeep Dayal, CEO of Centrum Capital, say the next 6 months will see realistic and substantial deal closures as developers sit on a negotiation table and accept more hybrid and watered down deals.

"I am looking into a couple of major deals. I think that next 6 months will see deals happening to the tune of over bllion dollars or more," said Dayal.

Developers are now finally admitting that they have had to accept the private equity reality of the situation with debt being virtually inaccessible.

According to Kumar Gera, Chairman of Gera Developments, the valuations have come down by 15-35 per cent for developers.

The first half of the year saw small deals worth about half a billion dollars in realty but the next 6 months could be more robust given deals are actually being closed.