The Indian real estate sector is “hotter” than expected as demand from overseas and from overseas companies has helped the country’s real economy strengthen, according to the countrys central bank.

The central bank said on Thursday it had revised down the growth estimate of real estate and real estate related goods and services to 3.4% from 3.7% previously, a forecast that will come into effect from the end of next month.

The real estate survey by the Reserve Bank of India, published on Thursday, was conducted over the last few months.

It said demand from international firms was the main driver of real house prices, with the number of new properties opening and the price index for new construction also increasing.

It added that there had been a surge in foreign investment in real estate in the country over the past two years, which has helped drive the growth in the industry.

It added that the real estate index was the second-highest in the world after the United States, which grew 7.4%.

The central Bank of Japan, the world’s largest economy, last week also cut its forecast for the country to grow by 2.7%.