Good morning, and happy World Quantum Day.
Quantum what? Yes, you read that right. The World Quantum Day is an initiative from quantum scientists around the World, launched on 14th April, 2021 as the countdown towards the first global celebration today.
It is a decentralized and bottom-up initiative, inviting all quantum enthusiasts and scientists to celebrate that hallowed branch of physics.
Why Today? Because 14th April (04.14 - mm.dd) is a reference to 4.14, the rounded first digits of Planck’s constant.
P:S: A long weekend starts tomorrow. Hit reply and tell us exactly what you won't be doing and your story could cheer up all our readers on Monday morning.
🚴♀️🍌🥛
What Goes Down Must Come Up
Bad News First: PE investments plunge
PE (private equity) investments in real estate came down by 32% in FY22 mainly due to the Delta-Omicron tag team assault on the economy, per this report.
Yeah? Tell Me More
38%, 22% and 14% of PE inflows were seen in the office, industrial and logistics and residential categories respectively.
FY22 saw average deal sizes plunging by 42%, though they managed to stay above FY18 levels. Investments however doubled to USD600 million in FY22 from domestic funds, while equity stayed at 80% of total PE investments.
What Caused This?
🔽 Investors switched emphasis to individual realty assets.
🔼 Single-city transactions gained traction.
🔼 Domestic funds showed more confidence in the market.
🔽 Average ticket sizes went back to USD93 million (akin to FY2019) with portfolio deals coming down.
🔽 Many deals went into the next fiscal owing to delays.
Now The Good Stuff: Institutional investments reach record USD1.1 billion
This report confirms institutional investment doubling to USD1.1 billion in Q1 2022 in comparison to Q1 2021 (USD0.5 billion). Big-ticket office sector deals led to higher investments in the quarter.
Main developments
📈 Foreign and domestic players accounted for 70% and 30% of inflows.
📈 Mumbai led with 25% of inflows.
📈 Retail drew 23% of inflows.
📈 Industrial and logistics drew USD0.2 billion (16%).
📈 65% deals were multi-city investments.
📈 Residential got USD15 million or 1%.
While domestic investors regain their mojo, e-commerce, data centres, warehousing, logistics, and office space continue to propel growth.
Engaging Leads Effectively? AI AI Captain.
💡 The essence of selling is conveying the most relevant message at the best possible time to the most suitable individual.
Imagine if something could do that for you, engaging your real estate leads more productively and beefing up sales in the long run. Good news for you, it already exists (at least in some form or the other).
It is your real estate CRM (customer relationship management) platform with a little twist.
How: While CRM’s anyway giving agents 18% more business than their rivals, it is also generating leads, giving predictive insights and streamlining workflows, but with tech and AI-backed engagement, CRM solutions transform into a beast:
🧠 Think automatic lead qualification and engagement, while passing down ready leads to you.
🧠 Think automatic understanding of leads likely to respond/purchase and figuring out engagement plans for better conversations and conversions, and finally,
🧠 Picture 24x7 tracking of your entire database, helping you create opportunities even while you sleep.
That is something isn’t it? Real estate could have a veritable game-changer on its hands.
Weekend Conversation Starters
One Nation, One Regulator Please.
Union Housing and Urban Affairs Minister, Hardeep Singh Puri recently stated that States should not dilute RERA provisions, while affirming its status as a universally accepted regulation.
Why States and RERA Dilution?
Some States have possibly tweaked RERA provisions while creating their own rules under the Act.
It mainly pertains to exemption for registrations of ongoing projects.
The Supreme Court has asked the Centre earlier to analyse whether RERA rules of various States are in sync with the central Act and serve homebuyer interests.
Puri opined that States should justify the reasons for dilution and strongly called for a no dilution blueprint. He also assured that the whole template will not be changed due to these dilutions.
Zooming In
All UTs/States have notified RERA rules with the exception of Nagaland. Many have implemented RERA, while some are yet to do so.
Universal implementation of RERA is the way forward according to all industry stakeholders.
While creative tweaking by States (often at the behest of the builder lobby and at the expense of common buyers) cannot be ruled out, the Minister’s assurance will keep our One Nation, One Regulator hopes alive.
Mesmerising Manhattan
