Good morning, we hope that your weekend was spent in the company of family, friends and tray-loads of tasty food.
Enough of niceties there, it's Monday morning and the perfect time to catch up on the latest via the blurbs below.
We have some interesting ones for you today. . .🦚
RWAs Want 'Forth Tier' Status
Resident Welfare Associations - (frequently abbreviated as RWA) meaning non-governmental organisations that represent the interests of the residents of a specific urban or suburban locality - are demanding constitutional status.
Zooming In
The kind folks who do the thankless jobs of ensuring round-the-clock services to millions of residents across India, are looking for a raise in status.
During the 8th National Conference of RWAs from all over the country, two big statements emerged.
- RWAs are in fact mini-municipalities serving every resident under their purview
- Many RWAs are much bigger than some village panchayats in terms of resident numbers
And while small village panchayats are given the status of a separate local government - with duties, powers, elections et al - RWAs are not being treated on the same scale, which shouldn't be the case.
What More?
The national meet also resulted in 11 passed resolutions of which the most important ones are;
1️⃣ Storm water management must be integrated with recharge and disposal facilities.
2️⃣ RWAs getting together and committing themselves to reducing carbon footprint. 💚
3️⃣ Launching an appeal to RERA authorities to include RWAs in mediation cells.
MENA's Proptech Push
Property technology or proptech in short, hasn't been the Middle East and North Africa (MENA) region's forte so far, but tech's way ahead looks bright as new investments, novel initiatives and rapid adoption are becoming today's trends.
A Policy Push
Per Crunchbase, proptech investments in MENA totalled over USD294 million since 2009.
A majority of these proptech startups are based in the UAE, the hub for proptech innovations in the MENA region.
Per JLL, Government support for digital transformation is the key to proptech growth in the country.
Along with its recent announcement of a national programme to train 100,000 coders and set up 1,000 digital companies in a span of five years, the middle eastern hub also aims to increase startup investment from Dhs1.5 billion to Dhs4 billion.
What's Working?
Two things - enablement and alternate sources of funding.
Governments aside, UAE and other countries in MENA have seen a surge in activity from private developers and investors.
These act as proptech ‘enablers’ by investing in or developing their in-house technology solutions to differentiate their products, gain competitive advantage and become market leaders in the region.
On the alternate funding bit, banks are taking a backseat as venture capitalists, startup accelerator programs, crowdfunding and peer-to-peer lending are taking over financing duties.
Per this Gulf Business story, Saudi Arabia-based investment firm, Watheeq Financial Services, has launched a USD26.7 million fund to invest in Proptech startups in the kingdom and the wider MENA region.
Are There Challenges?
There have to be. Here are the biggest of them:
Legal Frameworks - As technology advances ahead of regulations, especially with the integration of new data systems and algorithms, concerns are raised on how best to regulate data and data ownership.
Unclear Operational Structure - Lack of long-term management commitment to a successful proptech strategy/transformation is another hurdle that managers and leaders need to overcome to ensure business continuity.
Tech That Actually Helps - Proptech startups are often too invested in the technology itself and its features that they miss out on delivering it with a customer-centric perspective.
Globally, 61% of real estate companies reported using technology solutions through the pandemic, but just 28% used multiple tech solutions to ease business, meaning building specific proptech solutions for diverse market needs, is a sound business plan.
Time Travel is Free
1983 - Phiroze Jeejeebhoy Towers or the Bombay Stock Exchange as seen from Rampart Row, 4 decades ago.
Image - Shubhankar Sanyal/MIT Library via @IndianHistoryPics
The Truth Behind Closing Retail Stores
Retailers have announced plans to close more than 1000 stores this year, and experts say the total could reach 10,000 stores or more.
Mass closures, referred to as the retail apocalypse, have continued over the past few years.
Per Business Insider, in 2020, more than 8,300 US stores closed, following 9,300 in 2019, according to Insider analysis. Research firm Coresignt predicts this trend will continue into 2021-22.
There Is A Larger Picture
The trend of traditional big-box and established retailers closing doors is far from new.
Disney, Best Buy, The Children's Place, American Eagle, and the Gap are just some of many brands that have announced store closures this year.
However, the closure announcements have made it difficult to see the bigger picture; retail vacancies are at their lowest.
Per CBRE, overall retail availability in the US fell to a 10-year low of 5.9%, while neighbourhood, community, and strip centre availability also hit a 10-year low of 8.3%.
More To It Than Meets The Eye
There are many headlines about closures but few regarding openings. And this data suggests there are more of the latter.
Take for example, online grocery brand BigBasket, which plans to open 1,000 new Fresho stores all over the country in the next 4 years.
Jockey has just opened its 1,000th exclusive retail store in India.
Low Quality Class B, C Assets
Retailers struggle in locations that are poor. To move the industry forward, and for traditional retailers to ensure success, they need to clean house of their poor performing assets.
It's not a depiction of the industry's failures but rather affirmative of its future.
In One Sip
Retailers are shuttering stores because it allows them to re-design their store models and meet consumer demand for experiential retail.
It's a natural evolutionary process essential to survival and good for the industry. And ultimately, despite the closures, demand for retail real estate is on the rise.
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Alright then, let the week begin.
See you tomorrow. 💚
☕ The Crew@Ginger Chai