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Why didn't Reliance get into Real Estate?

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Why didn't Reliance get into Real Estate?

Last updated: December 31 2012
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  • Why didn't Reliance get into Real Estate?

    Some of us often wonder why Reliance did not get into real estate. We don't see Birla or TATA in real estate big time.

    Yes ofcourse TATA housing has been there for decades even before the mad rush of real estate India.

    real estate does not feature Warren buffet's portfolio much either. In fact zero.

    So I guess all these people are fools.
    Last edited December 31 2012, 10:43 AM.
  • #2

    #2

    Re : Why didn't Reliance get into Real Estate?

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    • #3

      #3

      Re : Why didn't Reliance get into Real Estate?

      They have other easy ways to mint money ... 2G, KG, Coal

      They have much easier and cheaper way to get land

      RE mein mehnat jyada hain!!

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      • #4

        #4

        Re : Why didn't Reliance get into Real Estate?

        Originally posted by sheeshu View Post

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        I am sorry but it can not be called real estate investment. It is property management company - brokerage service. Not even a million miles close to putting money buying real estate. The said investment is to provide services to real estate like property management, logistics and sundry. And it is not even a minuscule.

        The BH board on several occasions down played the real estate boom and Mr.Buffet is on record saying 'it is not the resale value but the yearly yield that I invest in'. The turnaround of housing market etc are all 'media putting words in our mouth'.

        I think media partly responsible for misreporting it and then people as usual exuberant.

        BH investments typically have a 20 year maturity and yielding period- like say rail freight infra. So its like 2032 BH has in mind when they put their money into this.

        But that said, I would also like to add that price parameters in the US are scientific , regulated and monitored unlike in India which is like betting and gamble.
        Last edited December 31 2012, 02:39 PM.

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