Good morning, till about 5 years ago, we were all greeted by a dog-eared visitor's log book while entering a housing society to meet friends and family. Yes, the same one where all the entries had similar signatures.
The advent of mygate and other apps rapidly killed the good old log book for good. Now, digital channels account for 15-20% of spending in Indian gated households, per the 2021 Redseer report.
So… everything from cash collections and book filing to commodity purchases and society elections are being handled using society management platforms and apps.
Proptech naysayers, sip a chai while you allow entry to the food delivery chappie waiting at your society's gate, with a quick swipe on your phone screen.
🏃♀️🥝🍎
Return Of The Natives - RBI Nudges NBFCs Towards Realty Debt
NBFCs, once the primary funding source for real estate, have been nudged by the RBI to make a comeback through a set of guidelines. They include the following:
📎 NBFCs can sanction loans after only after checking whether borrowers have obtained all necessary Government and other approvals.
📎 NBFCs should not provide loans of INR 5 crore or more to directors, MDs, Chairmen and other relatives and associated firms/entities.
📎 Loans lower than INR 5 crore, if sanctioned to such borrowers, should be reported to the board.
📎 All loans sanctioned to NBFC officers to be reported to the board.
📎 Senior officers or their committees cannot sanction loans to relatives. Only higher authorities can sanction these loans.
What it essentially boils down to
These regulations will come into force from 1st October, applying to middle and upper layer NBFCs.
The RBI has also added that the term 'loans and advances' should not cover advances/loans against life insurance, government securities, fixed deposits, stocks, etc.
What it could entail
NBFCs could make a much-needed comeback to Indian real estate, ensuring more funds for the growth of the sector. However, their only hope lies in working with reputed, organized and credible developers with a proven track record.
Infra-Read Thursday
If you think what you're seeing is a covered stadium, or the hangar that housed Mriya, the legendary Antonov 225, you are going to have to perish those thoughts right away.
Why:
Because this is a Vegetable Market.
🥕 Built at a cost of INR 6.7 crore as a weekly fruit and veggies hub
🍏 Accommodates up to 800 people with ease, and
🎙 Doubles up to host cultural programs and exhibitions for the community
Where:
Part of the Hubballi Smart City project, Karnataka. You can watch a walkthrough of the property on inauguration day too.
💭 Can we have some trees around this beauty, please?
Commercial Real Estate Is Leaning On Trees Now
This report by JLL talks of 65% corporate occupiers and 50% of surveyed investors emphasizing sustainability, when it came to commercial real estate.
Yeah? How? By integrating net zero goals into their sustainability blueprint.
Will such new-found love find permanence? Reports seem to think so, with sustainability being a major consideration while choosing sites.
Points worth noting
🍀 87% occupiers and 78% investors admit that climate and financial risks are entwined.
🍀 87% have confirmed sustainability as a board-level goal and, hold my cup, 81% are confident about real estate achieving these goals.
🍀 96% of all surveyed stakeholders look forward to a happy confluence of developers, policy-makers, investors and occupiers for these purposes.
With India targeting net-zero carbon emissions by 2070, such small steps are already the need of the hour.
What could happen
1️⃣ More investments in technology, especially for tracking and curbing emissions, could be seen. Climate tech entrepreneurs out there, heads up.
2️⃣ Employees will gradually want to work at greener and more sustainable-blueprint driven organisations.
3️⃣ Employers in this space will ultimately find motivation regarding the creation of sustainable and greener assets for the future.
All in all, here’s hoping that it does not turn out to be another flash in the pan. Remember plant a sapling day, anyone? We get it. They all love photo-ops.
Long-term sustainability? That’s a whole bigger deal.
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Rising interest rates and market volatility have stirred up a ruckus for real estate technology in recent months, but venture capitalists didn’t get the memo.
Per a recent Keefe, Bruyette & Woods report, a CPU-freezing, USD4 billion of VC equity funding flooded into the proptech field in Q1, 2022 as “investor confidence” in the sector hit an all-time high.
More critical updates tomorrow morning. 💚
☕ The Crew@Ginger Chai