Don't wait to buy real estate, but buy and wait: former SBI chief

Don't wait to buy real estate, but buy real estate and wait, says former Chairman of State Bank of India Arundhati Bhattacharya.

"The real estate sector has several challenges but at the same it fuels growth in the country," Bhattacharya said while delivering the keynote address at the two-day-long conference - 'Affordable Housing, Liveable Cities' hosted by international magazine, My Liveable City at the World Trade Centre at Cuffe Parade here.

"High cost of land and inappropriate land parcels in cities are a major issue besides high taxes and stamp duty," she said adding one of the major concerns is lack of rapid transport. "We need homes that are smarter in design, fast to construct and low maintenance costs," she said.

According to her, there is also a huge stock of unsold investory that is highest in Noida and lowest in Hyderabad. "The housing finance companies are there to reap the opportunities. I am told there are 70 of them and another 80 of them are waiting for licences," the eminent banker said.

There are eight sectors that are related to real estate. "Cement, steel, paints, tiles, wood panels, lightings, pipes, adhesives and construction chemicals," she said, adding that a recent study by NCAER has revealed that every Rs one lakh investment means 2.9 jobs.
Bhattacharya pointed out that the present government is concentrating on dedicated freight corridors and highways and these are going to create lot of employment opportunities.

"Through EMIs one can create equity as far as real estate is concerned," she said, adding that in such a scenario, one must go in for purchasing a house rather than going in for rental accommodation.