Hyderabad Real Estate, Indian Men, Psychological safety of your team
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1. Hyderabad Real Estate
I have not been in Hyderabad since many years, but I follow its real estate sector well through online sites and my own family stays in Hyderabad. I am not a real estate pundit, just sharing my observation over its market.
Let us talk about COVID impact first. As seen in US, interest rates have gone down during these last 8 months and it is true in many other countries as well. In US housing prices are high in cities as same true in any country city if we pick up. Majorly in US this has been seller market, even lot of sales happening, compared to buyer, seller has upper hand as they got many anticipated buyers with intention to buy and seller has more room to choose his choice of buyer meeting his/her criteria. One major trend seen here is people have moved to bigger spaces as they had to move out of their sofa or kitchen counter as worktable to designated workspaces in home. This is happening not just in US but also all over world and same is true for Hyderabad. As we know Indian living in cities is now more apartment living due high demand for housing and less space in city, government data has shown that 3 BHK is what mostly preferred among all buyers compared to all prior year data.
One thing needs to mention here is, unlike in US where new sales are happening in last 8 months, in Hyderabad the case is different. Most of the people who got registered or moved into apartments are mostly of bookings which were done almost 2 years back which are ready for move in now.
As people moving to bigger spaces and if remote culture comes in more and more. There is possibility that even apartment people will also have a living servant in their apartment. Yes, In India maid pay is spent like regular monthly expense, compared to Luxury in U.S. Since last 8 months many of IT workforce is at home, if both couple works in a home, there is more chance of having a living servant as an occupant. This was a luxury or mandate necessity earlier, may end up choosing a maid to live within the apartment, instead of hourly wage now. if this happens, there is a possibility to see Mumbai like structures in Hyderabad as well. Specially, the servant room having separate entrances compared to main apartment.
Gated communities, High rise buildings are very common in India. With the COVID-19 situation, many of senior citizens have faced issue by being home, as higher the building has more risk, as it has a greater number of people compared to small individual apartment building with less flats. As more the people, there is more work needed to maintain social distancing etc. So, the next set of buyers will prefer a smaller apartment compared to high rise gated communities is something to watch out for.
Gated communities in India are taking 2 to 4 years to deliver completed projects. Markets are so fragile that prices are going up every year. Unless someone is buying at early launch phase, only then getting value for their money, but again one must wait more than 3 years to get their keys. So, people in need of home in 6 months, will end up paying way more than what the property is worth. Also, the bigger the gated community, the bigger the maintenance fees, so that is one more additional expense for the premium price one must pay. So, will people go back to Individual apartments which can deliver in 6 months? We really have serious problem with home construction in India, as no big builder can deliver project on time, even when they are running on more than 2 years of build schedule.
Hyderabad also have serious space problem like any other city in India. The places like S.P Road on Secunderabad, Ameerpet, Punjagutta etc. have not even an inch space to construct new. Only option is to demolish existing one and construct new. So, this space also raises a question about, Small apartment complexes, if space is not there, with the current density in city it is not possible to construct small ones.
Hyderabad has rejected, those small space apartment sizes since many decades compared to other Indian cities. With the current inflation and prices, for mid sector builders must accept those small spaces where 800 Sq ft ends up getting a 3BHK. As not every buyer will be able to shell such premium prices, this is for sure to happen soon in Hyderabad.
Home prices are ridiculous. Yes, I am a homeowner myself, debt free. Even my own investments went high, I see it as very bad. If you remember our prior posts, we discussed about Good Economics for hard times book. At such sky-high prices, buyer with home loan will shell more than 40% of their monthly incomes towards home loan every month, this will have ripple effect to how rest of income is spent, even for basics, Food, Clothing, Transportation etc. For developing countries already known that will see greater impact of climate change as we discussed in that post or from book, bad choices (Example, say buying diesel car which pollutes more, as it comes with lesser price than electric or hybrid) will end up be chosen which will not just impact themselves, also climate, economy etc. So, this will lead to more detailed analysis of renting vs buying debate for home sector. Either the city requires price correction or will result to economic failure like 2008 recession which will correct. I hope, later does not happen as it will bleed even greater implication for hard working people who depends on month to month pay.
Quality is joke for these prices as well. In above correction, if builders must sustain in market longer and sustain any economic up and down in later decades, for sure, they must improve their quality for the price being asked. Else this decade winner will be picking up pea nuts in next decade. Already we have many such examples around with 2008 which was a decade back or current COVID-19 situation which has caused more losers in this sector. Irrespective of which Income category the homes are build, Quality is one thing which for sure requires complete re-look to improvise or be ready to die with market downturn.
Let me know what you see next for the city?
2. Indian Men
In Indian society, Men are expected to earn high and even till date there are many who are single earner for their entire family. India has this culture since many decades and it is not new to many, our grand pa, dad and now us, we are familiar and are in such place. So why am I talking about this is, I have been reading lot of career books lately.
This is my common thought every time I finish a career book and see a vague gap to relate book advice to Indian Men.
We all talk about equality in gender, but specially for Indian men unlike western culture, case is different. They are expected to earn more than their working partner, they cannot think of even small career gaps to switch career to different works then their earlier skills which they belong too. The Career 2.0 various topics like this which we read in books, even with Indian authors, none sees this from hardworking Indian working men’s eyes. Men even who have a backup of their working partner to think of career 2.0 or forgot that, even job change will scare his uncertainty into newer organization, As not working label is added as a failure. So, it is very hard for them to take career risks.
Let me know, even you see those advices on career shared to westerner or Indian never match up to Indian reality.
See couple of the links which shares you story of Stress and Cardiac diseases in men. Hell, of data is there and this is a reality, already ton is written about it, there is nothing new for me to share. I just wish the reality is understood by fellow partners, family members, so this issue can be resolved. Just a Men’s day wishes, Women’s day or Mother’s Day wishes for one day will not do much as we know. Reality needs to be fixed.
https://www.statista.com/statistics/1137295/india-gender-distribution-of-stress-index-by-age-group/
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3860846/
3. High performing Teams Needs Psychological safety
We can never build a team without having a strong trust within the team. If a team has psychological safety, it allows,
To take moderate risks in team, which enriches new ideas.
Team can speak to their mind without being fear of being judged.
Improved Creativity within team
It is our human behavior, why teams automatically do not gain this safety, as each individual behavior is unique. When someone is challenged in team or pointed out or having a disagreement, Human mind reacts first and later thinks. Oxytocin in our body, can improve by positive thinking, attitude, growth mindset and it releases more and more as we allow our mind to think in growth like mindset. This is proven by science that it plays important role in our social behavior, trust, anxiety, mother-infant bonding.
HBR did an article on this, how to gain your team trust so they feel psychological safe? High level steps as below,
Approach Conflict as collaborator
Be Human and speak to one to one as same
Anticipate reactions and plan countermoves ahead, when sharing some info in team
Avoid blame game, Be Inclusive in team communication and have conversation to work on improvements.
Do ask teams feedback in every meet, so they feel inclusive in whatever the discussion is. Even if it is just Order to do, communicate in a way that all feel inclusive and take feedback. Be Open minded even on those Orders if it make sense then adapt.
Measure psychological safety. Have team take surveys anonymously, so things can come to limelight.
High performing teams are not available ready, they are made every day in team.
That is all for this week. See you again.
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