Good morning, the Indian housing market is going through some turbulent weather. We are not talking out of our hats here, because…
🌪 Delayed projects and bankrupt builders dot our urban landscapes as disgruntled homebuyers hit the streets in protest
🌪 Rising costs of steel, cement and other materials are making home deliveries at pre-committed prices, impossible
🌪 Regulators in most states exist merely on paper, although this is excellent news for lawyers, and
🌪 Inflation is taking a giant pneumatic drill to first home ownership dreams across Indian metros.
However, there's no need to sweat because top property consultants have confidently predicted a 100% real estate recovery within the next 2 to 25 years. 😅
🚴♀️🍎🍳
Warehousing: What's In Storage For Tomorrow?
With e-commerce and 3PL driving global economies, warehousing is a major conversation starter today. Don't believe us? Just whisper the word 'warehouse' to any property broker at midnight and in a flash, you'll have all their attention.
But, as warehouses rapidly advance to accommodate the most bizarre of occupier demands, here's what industrial real estate of the future could look like.
Warehouse 2.0- The Basics
📍 Sorting centres in cities and industrial spaces in smaller centres.
📍 Low carbon footprint and logistics ecosystem development, with green electricity, smart lighting and temperature management.
📍 Facility heights surpassing 25 metres with 3/4 storeys for utilizing building cubature.
📍 Robots and automation driven by IoT, AI and 3D printing.
📍 Swifter turnaround times.
All Made Possible By Tech Powering:
✅ Automated capacity management.
✅ On-demand warehousing.
✅ Multi-modal optimization.
✅ Real-time tracking.
✅ Mobile scanning and report generation.
✅ Augmented reality for efficiency and safety.
✅ VR for verifying identity and other processes.
✅ Drones for inventory and RFID management.
✅ New-age sortation systems.
And, it’s not some distant new world we’re talking about here. The futuristic warehouse is closer than you think.
Wednesday Map Quest
Here's a map with some countries marked in blue. Do you know what's common to all of them?
💡 Hint: No. They're not countries with North Korean embassies.
Salvation Lives In Skyscrapers
Vertical is the worldwide mantra today for housing developments. Skyscrapers and towers are a new reality born more out of necessity than indulgence (as was perceived in the past).
Why spatial is impossible today?
• Land scarcity and soaring costs, making spatial growth unviable.
• Housing demand clearly exceeding supply.
• Urban congestion and better amenity-distribution in vertical buildings.
What rises ahead
Expect more relaxations on vertical growth and zoning regulations, with the tearing rise in urban migration and skyrocketing demand for affordable housing.
Expect Singapore, New York or Dubai to become worldwide housing models, i.e. high population density and skyscrapers/multi-storied towers.
One only hopes we don’t go the Hong Kong way with those micro apartments.
Hybrid Work And The Death Of Office Realty
The COVID-19 pandemic and its spawning of hybrid/remote working models is nothing new. But every now and then, experts huddle together and write op-eds debating if the hybrid thingy is going to eliminate the office sector altogether.
After some brain push-ups, here's how things stand:
🔖 Less is more for some, while some need more for expansion into various locations/verticals/regions.
🔖 Commercial/office space is not entirely out of favour with 100% remote working failing as a solution.
🔖 Most companies are calling back employees to office and even they’re only too happy to return.
🔖 Some downsizing has taken place in the short term although flexi office space brands have created a bigger niche.
What the market says
📌 India will benefit from its cheaper flexible office prospects per a group of experts.
📌 Another report confirms stable vacancy rates of 18.5% for the first time in two years, for the last quarter.
📌 Occupancy is set to go up even further, boosting the office sector. Yet another report shows office absorption at two-year highs of 13 million sq. ft. for Q1 2022.
In one sip
Office spaces have bounced back. There may have been some disruption. The ways of work may change. But there seems to be a Happy Ending in sight, albeit except Monday mornings.
Once, Elon Musk expressed bewilderment that Twitter was deploying engineering resources on NFT integrations, when it should be combating crypto scammers.
Now, the largest outside shareholder of Twitter after buying a 9.2% stake on March 14, we hope Elon finally gives us that edit button and the 281st character.
Have a great day ahead. We meet tomorrow, usual time. 💚
☕ The Crew@Ginger Chai