MUMBAI, INDIA—With home prices dropping 5 to 30 percent since 2009, foreign investment in India is moving toward commercial real estate.

Reuters reports that Investors including Blackstone Group, Morgan Stanley and Rothschild-backed Xander Group are seeking a larger piece of India's commercial property market due to the country's fast-growing economy. There seems to be an opportunity for a quick return.

"We waited till valuations got a bit softer and more attractive. And now, we are going aggressive," Akhil Gupta, chairman of Blackstone India, told Reuters in a recent interview. "We have done a few large deals, and are looking to infuse more capital."

Blackstone, which has the most private equity and is the most active investor in India, has spent $500 million on about 20 million square feet of leased assets over the past 18 months. The firm makes most of its Indian acquisitions through a partnership with Embassy Group, a Bangalore-based developer that invests largely in South India.

They are said to be currently negotiating to buy a special economic zone in Gurgaon - the growing satellite city outside of New Delhi - for about $440 million, according to unnamed sources cited by Reuters.

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