Good morning, Covaxin isn't the only vaccine name you need to learn. Mosquirix, the first vaccine to prevent malaria, recently got the WHO's stamp of approval.
The four-dose vaccine could save as many as 23,000 children from death each year.
In other news, our apples are being saved, thanks to appropriate land laws, while retail real estate, projected to grow at 28% over the next two years, clearly needs no saving.
Sustainable Growth Please
🔼 Yesterday, the Sensex closed at 59,677.83, north by 488.10 points (0.82%).
The Nifty ended with the day's trades at 17,790.35, up 144.35 points.
The real estate and auto sectors led the day's gains.
What's Heating Up Realty?
The BSE Realty index hit a 52-weeks high, up by 5.83% on Thursday and overall, it's been up by 30% in the last one month alone.
Till the recent past, there’s been a bit of a scare on commercial real estate performance, which was driven by the pandemic and the new trend of hybrid working models.
Most developers who have large commercial real estate developments were facing headwinds.
Lately, as companies recall employees to start working from offices, new distancing norms at the workplace is mandating consumption of larger spaces, both on the residential as well as commercial fronts.
As demand for real estate increases, stock performance is only directly proportional.
Word On Dalal Street?
Tushar Pradhan, CIO, HSBC Global Asset Management feels that the market is anticipating a very significant move in the economy soon.
He thinks the risk is where the delivery comes through and it will be important to note the sustainable earnings growth stories.
Spaced Out
Contrary to what most doomsayers predicted about malls and street stores, retail real estate across the country is on a rocket-fuel propelled growth trajectory.
What's even more interesting is that e-commerce giants are now eyeing premium high street locations to enable their loyal discount-hungry customers to visit them in person, for a 'touch-and-feel' buying experience.
What's Trending?
Organised retail real estate is. Per CBRE's latest report, the organised retail built up space in India has touched 64.3 million sq. ft. as of H1, 2021 and is expected to cross 82 million sq. ft. by 2023, a growth of around 28%.
Leading the growth are Delhi NCR and Bengaluru, with a projected addition of over 5 million sq. ft. of the overall organised retail real estate.
Hyderabad is expected to add over 3 million sq. ft. of the same.
Other top cities will pitch in with their own additions, taking the total space under organised retail to 8.2 crore sq. ft. in the next 2 years.
Is There Demand For Retail Space?
FYI, in-store retail was asphyxiating since the beginning of the pandemic as high-street malls and other outlets were forced to down their shutters.
But riding on the back of rapid vaccinations and an overall economic recovery, the sector may close the year with a 15-40% revenue growth, depending on category.
🛒 Though the pandemic has accelerated online shopping, word on the high street is that retailers will continue to focus on expansion through stores from here on.
Half A Cup Extra
- Hong Kong to tackle impossible housing market with 1 million new homes in Northern Metropolis.
- BMC has started issuing request letters to housing societies asking them about the vaccination status of all eligible members of their community, including maids, gardeners, milkmen etc.
- French logistics firm Geodis has leased 300,000 sq. ft. of warehousing space in the LOGOS Logistics Estate in Luhari, Haryana.
- Dubai property prices higher but rents continue to fall, signalling that the country's troubled sector is not yet out of the woods.
Save Our Apples
Travelling across Himachal Pradesh is a salivating experience for anyone with an interest in real estate.
Not taking away anything from their cuisine, the fact that picture perfect land parcels are scattered all over the state makes the land-owner inside most of us stir and want to break out with a check book.
However, folks from outside the state are restricted from buying land in Himachal Pradesh.
Why So?
Shimla, Kullu and Manali, Kasauli and all such tourist cities were once agricultural hubs, filled with sprawling fruit orchards producing delicious apples, peaches, cherries, plums and apricots, among many other fruits.
As pretty as these orchards may look, the fact is that you need acres after acres of farmland to turn a decent profit by growing and selling fruit.
It is an agricultural economy like any other in India. The sights are beautiful, the money is not.
Human aspirations, by the way are location agnostic, meaning everyone wants a villa in Gurgaon or a citizenship in Canada.
To fund that, an easy way would be to sell off that orchard and use the proceeds to chase those dreams.
Pretty soon, the entire state would be full of farmhouses belonging to city dwellers with, ironically, no real farming happening.
In effect, we would be exporting people and importing apples to feed our citizens.
Himachal's Restrictive Land Laws
Can people from outside the state buy land in Himachal? Mostly no but you're welcome if your intentions are genuine.
1️⃣ If you intend to purchase or lease a built-up property in municipal/cantonment/notified areas, then no permission is required. Land up and buy it.
You can also purchase land from Himachal Pradesh Housing and Urban Development Authority, or any other government agency if they are offering it.
📌 Purchases up to 500 sq. m. for residential purposes and up to 300 sq. m. for commercial purposes are generally allowed.
2️⃣ You cannot buy agricultural land if you are not from the state. Even if you are an agriculturist and intend to start your own apple farm or build a farmhouse, you are not allowed to buy agricultural land.
This restrictive law is the only thing protecting the agriculture driven economy of Himachal Pradesh.
How Can I Contribute?
Come by as a tourist, stay as long as you want, walk through the orchards and pluck and eat as many apples and cherries as your heart desires.
But if you truly long to start a farm, your own state probably needs you far more.
Have a great and safe weekend.
We will be back with a brand new issue on Monday morning.
💙
☕ The Crew@Ginger Chai