Maharashtra has started property e-registrations and the State is reportedly all set to also introduce blockchain. What is Blockchain? It is a technology by which users can keep a historic ledger of every transaction that has happened in the past for any asset be it a crypto currency or a piece of real estate like land or building. Track2realty analyses whether blockchain would be the future of real estate transactions.
A TV debate after the Union Budget 2022-23 caught one of the IPCs (Independent Property Consultant) off guard when the anchor categorically blamed him for real estate not getting its due with the budget. In his defence he could only argue that it is not about one specific report but all the industry reports are guilty of creating such a goodwill for the sector. The satisfactory voices were so profound that the policy makers too found the business capable of self-sustaining without any fiscal incentives.
When it comes to the recovery of the asset class, the market doesn’t spread its gift with equal generosity. The historic high growth curve of the stock market post Covid crash in March 2020 didn’t make every company’s share valuable. Similarly, in real estate there are certainly some clear winners & losers during the pandemic, finds Track2Realty analysis.
The cost of doing business per square feet has always been challenging in the top 10 cities of India. The ever increasing migration for jobs in these cities have made the housing affordability even bigger challenge. Critics are not cynical when they question as to what extent and till when these cities will continue to be filled up like a soda bottle. Aren’t our metro cities on the verge of a population blast? Come 2021 and Track2Realty analysis believes the infamous Coronavirus in a strange way has shown the way forward.
With the vaccination drive in full swing, there is renewed optimism, and the country’s economic momentum seems to be picking up. In particular, the real estate sector is witnessing new interest from homebuyers as seen in Q1 FY22, spurred due to positive government policies, initiatives taken by the developers and pent-up consumer demands. This is a new phase of real estate growth, innovation, and investment, contributing towards making India the world’s fastest-growing major economy.
Residential markets such as Bengaluru, Chennai, Kolkata, Delhi and more have witnessed price corrections ranging from 1%-2.3% during the quarter, suggesting the solidity of the housing sector even in difficult times. However, with this price increase, you will still come across certain real estate brands offering discounts and continuing to sell at the previous cost of construction. In such a scenario, how does one choose the real estate player who is honest and fair in his dealings? My simple answer would be go with a genuine brand but how does one identify what is genuine.
Investors continued to be bullish on the Indian market, snapping up assets in office and industrial space. Office assets accounted for 35% of the total investments in H1 2021, followed by industrial and warehousing assets with a share of 27%. Investors are viewing the current scenario as an opportunity to snap up properties at attractive valuations.
The question is whether the developers are yet ready to address what employees really want. Professionals with real estate background (both working as well as those who already quit) maintain that ‘Involvement’ is the key career objective nowadays but real estate companies never provide challenging work that inspires and realises results. What professionals demand is ‘Respect’ but the management hardly acknowledge the talent and contribution of each employee.
Across the built environment of the Indian real estate the two question that are on everyone’s lips is about the recovery timelines and segment to recover first. Track2Realty finds this uncertainty about the possible recovery, or rather the lack of it, has also kept the fence sitting home buyers on the edge.
The economists and the real estate analysts are unanimous over the inevitability of the real estate recovery in India. What is nevertheless being debated is when will the sector revive to its normal course of business. What is even more important is to assess what would be the shape of the recovery. In classical economic definition, three of the commonly used recovery shapes are V, U & L shapes. V-Shaped is a strong recovery after the debacle, U-Shaped is a slower and long-drawn recovery, while an L-Shaped aftermath is where the previous peak is not recovered.