UAE-based project development company Rakeen said it had formed a joint venture with an Indian firm to enter the booming domestic real estate sector.

Rakeen, promoted by the government of Ras Al Khaimah, has tied up with the Trimex Group of India for the venture, to be known as Rakindo Developers.

Rakindo plans to spend $5 billion over five years to develop 50 million sq ft of residential and commercial space.

The firm will start work on a $1.5bn integrated township in Tamil Nadu next year.

"Establishing an integrated township and IT park in Tamil Nadu affirms our belief in the state and is definitely a step towards our effort to bring world class facilities to India," RAK Investment Authority CEO Khatar Massad said at the World Economic Forum summit.

Since India eased rules on inward property investment in early 2005, the country has embarked on a frenzy of construction, causing land prices to double in major cities.

Foreign real estate firms have been eyeing the Indian market and Dubai's Emaar Properties has a 40 per cent stake in India's Emaar MGF, which is planning an IPO.