Good morning, do you know what's the single biggest market in the world?
Fact: It's the Chinese real estate market, with an estimated market cap of more that USD55 trillion at the end of 2021. Standing right beside it for comparison, the US stock market was valued at USD53 trillion at the same time.
Serious Fact: In China, private land ownership and property rights were abolished and replaced with cooperatives under the rural collectivization plan of 1953.
💡 Individuals cannot privately own land in China, they can obtain the land use rights but cannot own any resource in or below the land, making Chinese real estate an advantageous investment.
🏃♀️🍎🧃
Bangalore Housing: A Fall That Felt Good
Bangalore’s housing market players must be doing something right, going by this recent report.
What are we talking about?
📉 Bangalore has seen the highest reduction of 23% in unsold housing inventory in Q1, 2022. All riiise because demand has clearly outstripped supply.
📈 The residential segment has grown steadily with start-ups and technology firms doing well in spite of the pandemic. Remote work, auto-increase in disposable income due to reduced transportation, unreal rising salaries meant more aspiring homebuyers booted the word aspiring out of the phrase.
Why we’re talking
Price appreciation has already outstripped pre-COVID figures for Bangalore along with India’s other metro cities. End-users are still optimistic about the housing market and there is also more activity in the high-end category.
Big reasons for positive tidings
1️⃣ Strong Government initiatives to check raw material costs and inflation.
2️⃣ A strong Indian economy in spite of the pandemic and inflationary trends.
3️⃣ Cheaper cement and steel supplies and lower input costs for developers.
4️⃣ More new launches along with better packaging of existing projects by developers.
5️⃣ Growth in IT and ITeS sector along with start-ups, which is creating employment opportunities and housing demand in Bangalore, for instance.
Onwards and upwards
In a move that will keep the momentum going for steadily-recovering Indian real estate, Union Finance Minister Nirmala Sitharaman has already confirmed an excise duty cut of INR 8 per litre on petrol and INR 6 per litre on diesel, to check inflation.
With customs duties coming down for a few raw materials that go into manufacturing steel, the Government is also attempting to enhance cement availability via superior logistics and cost reduction initiatives.
Proptech Aides The CRE Journey To Net Zero
Proptech may help tackle climate change. Does this statement seem a little too out of the box? Only, it’s not.
Here’s how
Proptech is already being used for the property management and construction segments to both streamline and regulate workflows and costs involved in maintenance and development of commercial real estate (CRE).
Technology is helping create buildings with lower carbon footprints and higher energy efficiency. Tech is also aiding the retrofitting of older buildings to make them more sustainable.
Proptech is already benefiting commercial real estate by driving measurement/analysis metrics, up scoring on sustainability, efficiency and overall wellness.
What it could lead to
🍀 More environmentally sustainable buildings.
🍀 Lower carbon footprints and emissions from cooling, lighting and heating buildings.
🍀 Higher operational efficiencies for buildings.
🍀 Lower water consumption, increased reuse and recycling.
The prospects are exciting. More so when you consider the innumerable retrofitting possibilities to make older buildings smarter. From responsible consumption to better metrics, tracking and analysis, expect proptech to play a defining role in future real estate dynamics.
Yes, we need boatloads of new buildings to account for population growth and development, but we need them to be more sustainable too.
That’s where proptech is building a fascinating connection.
Wednesday (Inverted) Map Quest
Retail 3.0 - Physical Is Indispensable
Yes, online shopping has taken over the planet. Yet, physical retail is back again in a post-COVID-19 world. We call it Retail 3.0, since 2.0 was more about retailers taking baby steps toward building their digital presence.
The return of the native
🕐 60% of companies with physical stores are planning an expansion in 2022.
🕑 Customers still prefer personalized and community-based approaches at physical stores. Retailers are also drawing people for concept testing, building relationships and more.
🕒 Success
ful online brands are reverse migrating, setting up brick-and-mortar stores. The examples are too many to list here and yes, you could start with Amazon.
And this is not happening at the expense of online shopping, which is also growing simultaneously. Omnichannel is the word of the year (online + offline experiences).
Why brick-and-mortar is buzzing again
🛒 Experiential, integrated and personalized customer journeys which require physical retail. New and innovative experiences and events. Testing new concepts too.
🛒 Community building through clusters and initiatives to build connections between brands and buyers.
🛒 Building bridges between online and offline is also stimulating the growth of physical retail. Stores are taking care of returns and in-store pickups.
If there’s one positive that COVID-19 may have left behind, it’s this new-found duet between physical and digital retail. Who gains? We (consumers) of course.
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Turns out, Bangalore's housing sales velocity is still taking baby steps compared to this;
🚨 Foreign institutional investors have pulled out more money from the Indian markets in the first 5 months of 2022 (INR 215,000 crores) than they brought in over 12 years between 2009 to 2021 (INR 180,000 crores) — giving us a glimpse of the selloff velocity.
We are stronger than we imagine. Have a good day. 💚
☕ The Crew@Ginger Chai