Real estate boom to last for another decade: Official

Chennai, Dec 8 (UNI) "The boom in the 12 billion US Dollar Indian real estate industry is expected to last for the next one decade if industry becomes a part of the inclusive growth and behaves responsibly to the needs of society," Indian Bank CMD Kamalesh Chandra Chakrabarty averred today.

Delivering the keynote address at the inaugural session of the two-day summit on 'Emerging Trends and Opportunities in South India's Real Estate Sector', orgainsed by the CII here, he said the real estate, which was growing at a rate of 30 per cent, would continue to grow rapidly.

However, he cautioned that the industry should not become a playground for speculators and go bust. "It is advisable that the serious players have sufficient stake in projects but they should not look for higher returns than what an equity market would offer".

"If you are a sincere player in the market, there will be no problem in availing finance but you must ensure that you have sufficient stake in projects and have a survival spirit. Those who enter real estate with their own money will never lose, irrespective of changing business cycles," he added.

Dr Chakrabarty said with housing and real estate accounting for six per cent and seven per cent of GDP respectively, there was a boom in the industry, which was a good indicator of a maturing economy.

The boom would sustain only if the industry becomes a part of an inclusive growth, catering to the legitimate aspirations of the people. "If cost of housing goes up, find ways to make low-cost housing a reality and meet society's needs," he added.

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