Good morning, the commissioner for cooperation and registrar of cooperative societies, Anil Kawade, has issued a directive to help all new cooperative housing societies in Pune.
What is it: If a cooperative housing society has completed its property registration and is awaiting the conveyance deed, the society members can seek ‘deemed conveyance’ if the wait time for the document exceeds 4 months.
How this helps: You see, sometimes, after builders finish constructing the building for the co-op, they delay/refuse handing over the conveyance deed to the final property - fyi the conveyance deed is the foremost document of property ownership in India.
But not anymore, because as soon as 4 months pass from the date of registration, a copy of the conveyance will be automatically processed and handed over to the housing society. A small application needs to be made to that effect though.
God Bless Anil ji.
🏋️♂️🥚🥛
Indian Realty Embraces The Holiday Boom
There’s a gold rush with several big names scrambling for a piece of the pie.
What are we talking about? Holiday or second homes. In a post-COVID-19 world, demand is steadily rearing its head in this segment, and your mother will tell you that where there's demand, there's a real estate builder waiting to set up shop.
Holiday home trends
🏖 High demand from affluent individuals/families, especially in hilly/coastal zones.
🏖 DLF is already planning projects in Kochi and Goa.
🏖 Eldeco is also planning similar projects at Goa, Rishikesh and Kasauli.
🌄 Uttarakhand is seeing sizable demand along with Himachal Pradesh.
🏔 Shimla, Kasauli and Dehradun top the charts along with Panchkula and New Chandigarh.
🎁 Several corporates are also investing in such projects for rewarding employees.
🧘♀️ Home buyers are investing for more tranquillity, social distancing, privacy, and all their preferred amenities in one package. Many entities/people may use them to earn rentals in future too.
What it means for developers
New channels of demand from wealthy buyers and even high-salaried households. Demand from corporates and other players. Opportunities to enter new markets.
Basically, something that sounds like Boom, Boom, Boom.
Real Estate And The Ice Apples Of Vizag
In a bizarre scenario, Thati Munjalu or ice apple/palm fruit has gotten out of reach for Vizag residents. That, when these coastal people perceive it as the most nutritious and refreshing fruit in summers.
The culprit?
Real estate activity has been increasing exponentially and palm trees are being cut down en-masse to make way for residential projects.
Hotter summers to come
While prices of the fruit today have touched INR 50-60 per dozen already, iced apples would probably get costlier in the coming years as plantations are pushed further away from the consumption centres, thereby increasing transportation costs.
Only a few stalls sell it in Vizag today and many have vanished from the Beach Road and NH-16.
🙁
Wednesday Map Quest
Alright, what do we have here? A world map with countries marked in shades of green and red. Any guesses what this whole thing means?
For starters, it means it's mid-week already. Yay.
Are US Housing Markets Rewinding To 2007?
The ghosts of the 2007 US housing bubble have resurfaced again, and it's got analysts terrified.
Zoom In - Zoom Out
A flashback: In 2007-08, the U.S. housing boom of the 2000s finally burst its bubble with bad loans, market corrections and a ton of other unclaimed baggage (Citigroup or Bank of America would know).
Cut to 2022 and these are the trends:
🎈 Home prices increased by 34.4% over the last two years.
🎈 19.8% price jump in the last year, 4+ times more than the 4.6% historic annual average since 1987. It also exceeds the biggest such jump before the 2008 financial crisis.
🎈 Home prices are again de-linking from average household incomes. The 100 biggest housing markets are overpriced in relation to economic fundamentals. 44 are overpriced by 30% while 13 are overpriced by 50%.
🎈 Boise is the most overpriced market followed by Austin, Ogden, Utah, Las Vegas and Atlanta.
🎈 Economists are predicting a drop of 5-10% in home prices over the next year, once demand cools.
🎈 Eerily, in March 2007, 99 out of the 100 biggest markets were overpriced. 40 of them were overpriced by 30% while 19 were overpriced by 50%.
What Could Be Brewing
A burst bubble may be likely, going by the uncannily similar signs. Yet, economists feel that the backlash won’t be as severe.
They point at lower speculation levels in the housing market this time, while also indicating that household finances are in better shape.
Amen to that.
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🌏 Wednesday Map Quest: Colours indicate a country's level of peace - green for increasing peace and red for the opposite. Also, now we know why Russell Peters hails from Canada. Map: Global Peace Index.
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There's a storm washing out our east coast while a heat wave roasts the interiors. Typical life story.
More interesting updates tomorrow morning.
See you. 💚
☕ The Crew@Ginger Chai