Good morning, homeownership is the primary dream of the middle class but industry veterans will tell you that promotion greatly influences the homebuyer to act.
And, by gauging how consumers attempt to satisfy their desire for a home and harnessing those emotions to create adverts, a realtor can influence purchasing decisions.
But, studies also reveal that:
📌 Many consumer decisions are affected by the personality or style of the sales agent, and
📌 Ethics underpin the promotion of real estate and are, perhaps, the greatest asset the industry has for its own survival.
🏋️♀️🍌🍳
Mumbai Could Be Going The Atlantis Way
Heard of the mythical submerged city of Atlantis? Turns out, without preventive measures, Mumbai and other coastal cities may submerge by the time the calendar hits 2050.
Global risk management firm RMSI has unearthed risk areas including Jawahar Lal Nehru Port Trust, Haji Ali Dargah, Bandra-Worli Sea-Link, Western Express Highway and the Queen’s Necklace in Marine Drive.
Why we need to worry
📌 Findings from the IPCC Climate Change 2021: The Physical Science Basis were considered with climate change information and in-house models at RMSI. Other coastal cities like Vizag, Kochi, Chennai, Thiruvananthapuram and Mangalore also remain at risk.
With IPCC projections of sea levels increasing by 2050 in India, RMSI has flagged the higher incidence of storm surges, cyclones and severe rainfall and flooding.
Just so you know, cyclones have gone up by 52% on India’s western coastline in the last four decades. Global temperature changes of 2°C by 2050 will further worsen these risks.
What can happen?
998 Mumbai buildings and 24 kilometres of roads may be impacted in Mumbai by 2050, while 2,490 structures and 126 kilometres will be impacted by rising sea levels owing to high tide. Other coastal cities in India will also witness similar risks.
What needs to be done?
RMSI recommends early warning and disaster management systems, land reclamation, increasing road height and relocation/strengthening of structures.
Also, greenhouse gas emissions need to reduce fast.
Will we make it? If every living human does their bit, it's achievable but highly unlikely.
Tech Heart Mother
Entrepreneurs reading this, take a bow from all of us because growing a business is no child’s play, especially in an increasingly competitive world.
Tech it away
Yet, successful real estate business founders know that technology is the heart of future growth and innovation. Albeit, taking that first step is hard and involves a clear outline of your future business trajectory.
Once the foundation is laid out, companies can get into new tech-backed platforms, open architecture and mechanisms to garner higher leads, scale faster and enhance hiring while integrating technology into the mainstream discourse.
Two sides of the tech-stack coin
Heads up, organisational roles should ideally determine the technology stack with consistent upgradation. It will ultimately help achieve greater scale while unifying business and tech objectives seamlessly.
On the flipside, tech integration, per several business leaders, should begin from processes. They advocate clear definitions of need-based goals/cases around these processes and then look at how technology fits into the same.
Btw, it's a heads I win, tails you lose kind of toss, so whichever route you take to tech adoption/transformation, you're winning, hands down.
Tuesday Treat
ICRA Brings Good News Via Rating
ICRA has just released some welcome news for the commercial real estate sector.
What: The outlook is anticipated as Stable for FY23 throughout the retail mall and office segments. Retail malls had the outlook revised from Negative to Stable, thanks to rising rental income, rent escalations and trading density improvements.
There's more: ICRA also forecasts growth in the commercial office sub-category to 28 million sq. ft. in CY2022 from 20 million sq. ft in CY2021. Offices are buzzing again and there could even be hiring growth.
Of course, net absorption could be lower than CY2019 (41 million sq. ft) but it’s a good recovery curve nonetheless.
Some other predictions worth noting
📎 CY2022 may witness impressive supply figures in Bengaluru and Hyderabad while vacancies could dwindle down to 18.4-19.4% overall.
📎 Rentals should be steady for Grade-A properties in suitable locations.
📎 A 5% revenue growth is expected as occupancy grows.
📎 Retail malls should recover with more relaxations, big-ticket movie releases and greater consumption.
📎 Pre-COVID-level footfalls to arrive in FY23 itself though average per footfall spend may slightly reduce.
📎 Mall rental income could outstrip FY20 figures by at least 4-6%.
📎 45% YoY growth in FY23 with 60-70% operating profitability.
Here’s to ICRA’s predictions coming true, and a better year for commercial realty.
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China's Zhenro Properties admitted to missing interest payments on two offshore bonds and expects four more defaults in the coming months due to the lockdown in Shanghai, per Reuters.
However, the head honchos at Zhenro added that the company plans to make the payments by the end of May.
Covid hasn't spared anything. See you tomorrow. 💚
☕ The Crew@Ginger Chai