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    Big Bull Rakesh Jhunjhunwala bullish on commercial real estate sector

    Big Bull Rakesh Jhunjhunwala bullish on commercial real estate sector

    Big Bull Rakesh Jhunjhunwala bullish on commercial real estate sector
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    By CNBCTV18.com  IST (Published)

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    Rakesh Jhunjhunwala said he was very bullish on the commercial real estate sector as the development of the real estate sector is critical to India’s development.

    Ace investor Rakesh Jhunjhunwala on Thursday said he was very bullish on the commercial real estate sector as the development of the real estate sector is critical to India’s development.
    “Fifty percent of office occupancy is vacant right now,” he said at the 4th edition of CII Real Estate confluence.
    “With the development of metros, wherever metros come, housing comes up. As the transport system comes, the potentiality for housing also comes,” he said, adding that urbanisation in India is half of China’s at present.
    Big Bull Jhunjhunwala said India should focus on affordable housing and called for an increased pace of digitisation in the country. “Digitisation of land records and certification of titles being done digitally and this will boost real estate market in India,” he said.
    He, however, said real estate is the only space where a developer is not bothered about the cost of construction. He said he wasn’t a big supporter of new-age developers getting listed.
    “If I was a developer, I would not list. It's not a business suitable to listing,” he said at the virtual event.
    Blue-chip companies have a high return on capital but until now real estate companies, Jhunjhunwala said, adding that one has got to have the size to list. Large companies like Lodha and DLF who have large portfolios should surely list, he said.
    According to him, real estate companies need to take steps to boost return on capital employed (RoCE).
    Jhunjhunwala also said that real estate investment trust (REIT) is going to be a very big asset going forward.
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