☕ Water runs dry

Good morning, these are testing times. As the world recovers from the pandemic, all kinds of businesses - from jewellery to automobiles and everything in between, are banking on the upcoming festive season to kickstart a long and hard climb to complete recovery.

Warehousing, for example, is already on a growth path and retail is not too far behind.

Now, be our guest and put our newsletter service to the test.

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WAREHOUSING

Make Some Room



The pandemic is ebbing and everything is suddenly bigger in India, including the demand for warehouses. 

Leasing activity in India's warehousing segment stood at 14 million sq. ft. in H1 (January-June) 2021, a half-yearly growth of more than 13%. 

Per CBRE's latest report - India Industrial and Logistics Market Monitor for H1, new warehousing supply also increased by 5%, to 11 million sq. ft. in the January-June 2021 period compared to the second half of the calendar year 2020. 

What's Moving?

Medium to large-sized grade-A warehouses (more than 50,000 sq. ft.) saw the most leases, with a share of about 62% of all transactions during H1, 2021. 

Third-party logistics firms (3PL), e-commerce players and retailers were the major demand drivers.

Where's The Action?

Chennai accounted for almost a third of the total new supply addition in H1, 2021, followed by Delhi-NCR (19%) and Mumbai (16%).

Also worth noting is that Ahmedabad, Hyderabad and Chennai witnessed half-yearly rental growths of 2% to 14% during the January-June period.

What's Working?

Warehousing deals that were put on hold because of the pandemic were pushed over the finish line once retailers were confident of reopening stores amid increasing footfalls and consumer demand. 

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ENVIRONMENT

Where The Taps Work



A home purchase involves various calculations - safety of location, credibility of builder, unit design, build quality, room sizes, amenities, power backup et al. Another very critical question that needs to be added to the top of that list is, 'will the water taps in my new house work in the near future?'

Hold My Glass. What?

You heard right. A 2018 publication in Nature forecasts that by 2050, Jaipur would have the second-highest water deficit in the world, and Chennai is at #20 on that dreaded list. 

As a follow up, a 2020 report by the World Wide Fund for Nature (WWF) confirms that 30 Indian cities could face a ‘grave water risk’ by 2050 owing to sharp increases in population and reckless water mismanagement.

Jaipur, Indore, Kota, Nashik, Vizag, Bengaluru, Kolkata, Mumbai and Lucknow are all in the 'grave water shortage' list of cities and since the drying out time is expected to be 2050, the signs will start manifesting themselves in the next 7 to 10 years. 

It's Just Hearsay.

Sample this;

Even as you read this, most Indian cities can’t meet the per capita water supply level set by the Central Public Health and Environmental Engineering Organisation - 135 litres per day. Heck! Most cities are not even close to that per-capita-level. 

And this;

Samples collected from 21 major cities across India in 2020 failed to meet the water quality standards, while a NITI Aayog study declared that nearly 70 per cent of India’s water is contaminated, impacting three in four people. 

Is There A Solution?

Absolutely. Just like global warming factors and nuclear weapons are on the decline, thanks to a coordinated effort by every citizen of the world, India's water problems too will be resolved in time. 

Want a real solution? Look up the list of Indian cities slated to run dry and steer clear off those metros if buying a new home. Rent instead while you find work or set up shop in a city where your taps will work for a long time from now. Then, it's time to buy. 

Denial may not cost you directly, but for your children, the scene may be far more arid.

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HALF A CUP EXTRA
  • Per data available with the Maharashtra property registration department, INR 7,507 crore was collected in revenue during the July-September quarter, slightly higher than pre pandemic levels.
  • Chennai has been declared the second greenest city for real estate in India with a global green rank of #224. Delhi ranks #63 globally and is India's greenest city for real estate.
  • Nearly 3,800 families in 6 villages could be displaced for the new Noida Airport and many residents were ready to offer up their agricultural lands for the development of the region.
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PROPTECH

Trust - The Missing Commodity



Indian real estate has come a long way but let's face the fact - several things are still wrong with it.

Unethical real estate agents, shifty landlords, fraudulent title documents, sub-par construction quality, unrealistic prices, shady/no agreements, are just some of the factors contributing to the already tedious process of finding the right home.

And at the bedrock of most of these problems is the issue of trust. It's time Indian proptech firms stop brushing this under the carpet and attack it head on. Tech after all, is meant to build trust. 

Indian Solutions for India

Ever wondered why there are only a handful of trustable builders and brokers in India? What makes them the flagbearers of ethical dealings in today's huge property markets? 

Why can't technology uplift thousands of ethical builders and brokers who are building and renting/selling millions of homes across our nation? 

Why does proptech have to be so exclusive?

We need to stop retro fitting western solutions to the Indian real estate market, and proptech startups need to stop emulating one another to create the perfect copy. It is high time that tech solutions are created ground-up for our highly diverse yet trust hungry regional markets. 

Will Techies Please Stand Up?

India is the world's go-to place for software development. Bangalore is the world's tech hub but it is also a hub for fraudulent real estate transactions, with billions of hard earned money lost by ordinary folks each month. And such examples exist across all our big cities. 

It’s high time we moved on from the current dominant messages in the property market - size and diversity – to instead communicate the local expertise that is more relevant to today’s clients.

Till then, even with billions invested in our home-grown proptech firms, when someone moves to a new city, they love finding the perfect homes to rent, share or even buy, on Facebook!

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BUTTER TOAST


Today's butter toast goes out to the Delhi administration, which reported zero COVID-19 fatalities, 32 fresh cases and a resulting positivity rate 0.05%. 

With that piece of heartening news, we wish all of you a great week ahead. 

More updates tomorrow.

☕ The Crew@Ginger Chai
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