Real Estate – To invest or not

September 29, 2010

Abhijit Mukherjee of Dr Reddy'sEveryone of us has our own ideas about a dream home and usually wonder if it makes a good investment or not. 

But for Abhijit Mukherjee, president of the pharma firm Dr. Reddy’s, the choice is very clear — He is not a big fan of real estate investment. 

While speaking to Reuters journalists at the India Investment Summit in Bangalore, Mukherjee cited the American example of a recent real estate crash and wondered whether India, too, is headed in the same direction. He said buying a house and holding it for value appreciation over a number of years is not a good idea.

Notwithstanding his skepticism, he said he is thinking of changing his apartment. But he was quick to add that it is not a very exciting investment.

Mukherjee would rather park his money in a high-risk, high-reward investment like equities.

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