Good morning, here's some news which will feel like frozen dessert.
🍦 Demand for soft drinks and ice-creams in India has touched a five-year high, with the early onset of summer, improved power supply in villages, return of push-cart workforce to cities, reopening of schools, and revival of business and leisure travel.
Dairy giant Amul told ET that its ice-cream sales have just crossed close to 40% over the summer of 2019.
Also, PepsiCo's largest bottling partner said that they have not seen such high demand in over five years and that all plants are running at full capacity.
Alright then, onwards to recovery. 🔼
🚴♀️🍎🥛
Is UK's Red Hot Housing Market Indicating Something?
Several reports, like this one for instance, lift the lid off the UK’s potential housing crisis amidst what is clearly a red hot housing market.
Quick recap: After lockdown restrictions were lifted, housing demand in the UK has been increasing like crazy, as mortgage approvals touch pre-pandemic figures and sky-high home pricing is a natural outcome, with a 10% annual growth rate.
Context Please...
🔥 Average UK home prices went up by more than £28,000 in the last year. This is equal to the average UK worker’s earnings in the same duration.
🔥 Demand already exceeds supply considerably.
🔥 Prices have also gone up faster than salaries.
🔥 Residential property values have doubled to $350 trillion.
Is there a collapse coming?
Per some experts, with housing prices at record levels, a minor slump in demand could lead to UK’s housing market going bust, while others highlight inflationary pressures on central banks and moderating growth worldwide.
Though higher demand and sales figures are good news, one hopes that unreasonable price growth does not derail the market in the long run.
Dubai Realty To Be Driven By Villas Through 2022
Dubai’s realty market continues to be spurred by villa sales in 2022, per this report.
What’s interesting is that villa prices may surpass peak levels seen in 2014. They already soared by 18.8% (year-on-year) and 1.2% (month-on-month) this March. Prices went up by 34.1% for villas with 2.1% as March’s growth rate.
The biggest performers?
Jumeirah Islands, Arabian Ranches, The Lakes and Jumeirah Village. Even Mudon and Green Community West feature on that list now.
What about the future?
Rates could stabilize though upcoming projects and foreign investors will drive volumes. HNWIs (Russian oligarchs?) will keep investing.
🔥 March saw a 6-bedroom Emirates Hills masterpiece getting Dh75 million. The party’s set to continue.
Tuesday Treat: A Beginner's Guide To Chai
Do you depend on a daily cup of coffee to get out of bed in the morning? Perhaps you need another cup by the time you get to work, and yet another one after lunch to power through the afternoon slump?
Try tea instead. Add some ginger and you have a winner right there, cup and all.
📺 Watch this uber cool video to transmogrify [no cardboard box needed] into a tea guru from a coffee buff, in just a few minutes.
Court Controlled Housing - Pros And Cons
We know many developers have been crying foul in recent times over insolvency proceedings. Anxious home buyers have also been fretting about delivery delays.
Yet, the Amrapali case shows a silver lining, where the Court is supervising completion and ready units are selling in the market, raising money for finishing the remainder.
Zooming In
📌 UP RERA shows 70 projects facing NCLT insolvency proceedings.
📌 Upon completion of the same (though slow), Noida's housing market will get a massive inventory overhang, possibly lowering home prices. Even though other Indian cities may see price hikes due to increasing raw material prices, Noida may see the opposite.
📌 Rationalisation of housing prices in Noida is possible if other stalled projects are completed under the Amrapali model.
📌 NBCC (yes, same guys who built a housing society a few years back, and it's earmarked for demolition already) has taken up 650+ units in Noida and 4,500+ units in 23 Greater Noida projects under Supreme Court supervision and the aegis of ASPIRE.
Zooming Out
🔼 Similar initiatives may help such units (comparatively affordable than their counterparts) sell faster, thereby meeting demand and rationalising pricing.
🔽 Yet, slow and low housing supply under this model may prove to a roadblock in realising these dreams.
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In this beat up Indian neighbourhood, homes for 298 families are being replaced with bright, low-rise apartment buildings surrounded by greenery and other community spaces.
The Curry Stone Foundation, an architectural foundation, along with the Indian government is funding a one of a kind slum transformation project. Don't miss this very happy read.
Go buy yourself an ice cream cone. See you tomorrow morning. 💚
☕ The Crew@Ginger Chai