Business mogul Sudhir tips on investing in real estate
Business tycoon, Dr Sudhir Ruparelia, has said real estate is one of the safest businesses to venture in even amidst inflation and economic hardships.
Sudhir made the remarks during the Uganda Revenue Authority (URA) third edition of the ‘e-bomba ya business’ summits which focused on real estate as business.
The businessman, who has invested heavily in real estate, said over the years, one's building or land value will appreciate therefore it is very important to invest and plan right.
He advised potential developers not to rush into borrowing until they are able to finance their loans, noting that success in real estate will only come if one doesn’t borrow money.
"It is good business but if you make a mistake and overstretch yourself, it will lead to your downfall,” he said. Work hard, create your own cash flow and build without any borrowing. Do not borrow until you own a minimum of four properties," he advised
Speaking during the summit, the chief executive officer, Knight Frank, Judy Rugasira raised concerns on the continued lockdown on some sectors such as education, entertainment which she said has greatly affected revenue streams.
Rugasira said there is no way the real estate is going to improve when curfew is still in place meaning that businesses like restaurants and bars cannot make enough money.
"That sector of retail is completely dead and they are struggling. It is going to take them a very long time to recover from the pandemic. Schools are a very big source of demand for fast moving consumable goods," she noted.
Shriely Kongai, the President Association of the Real Estates Agents, Uganda said the real estate sector follows the economy. When the economy is good, real estate blooms.
"We are encouraging them [ real estate investors] to diversify portfolios and we are also encouraging them to be more tech savvy. Brokers are now offering virtual tours instead of physical tours of properties. Developers are using virtual reality to market their properties," she said.
