Category

Affordable Housing

The Age of the City…Rural Migration has Reshaped India’s Real Estate Markets

By Affordable Housing, COVID-19, Housing Need, India, Mainstream Impact Investment, Modular Construction, News, Real Estate Markets

Increased levels of urbanisation in India (and elsewhere) are both an opportunity and a challenge: we have to learn to build homes better, faster and smarter, which is why Modular Construction is becoming so important: It will be a key part of addressing homelessness across the globe.

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A Time to Build and Buy…Indian Real Estate is facing a Perfect Storm of Opportunity

By Affordable Housing, COVID-19, Housing Need, Housing policy, News, Real Estate Markets

If it walks like a duck and quacks like a duck, it’s probably a duck: which is good news if you’re looking for a duck. And the same faithful formula applies to commercial markets: forget all the background noise, if it’s growing and looks like growing more, it’s probably good to invest in. You don’t need to be Warren Buffett (or Aristotle) to work that one out, and right now the needle for Indian Real Estate is reading high on both counts. Despite the (to put it mildly) dampening effects of COVID lockdown restrictions, the subcontinent’s property markets are facing a perfect storm of growth and opportunity…so this is a time to build and buy.

The sector has grown by 11.2% over the last two years and market analysts now predict pre-COVID levels will be reached again before the third quarter of this year, with the Affordable segment expected to perform especially well in areas including Hyderabad, Bangalore, Mumbai and Pune. 

So what exactly are the factors combining to make this perfect storm?

Disruption and Acceleration

Well, first of all, there’s COVID itself. Like most major market disrupters, the pandemic (beyond its obvious short term impact) has not delayed growth: it has turbo charged existing trends. With more time locked down at home, people are spending more time searching for (and buying) new properties online, which has created a sharp spike in demand. Competitive bidding thrives when there’s little else to look at and nothing else to do, and prices are shooting up as a result. Then, of course, that old (new) favourite Zoom has brought us virtual viewings as well, so you didn’t even need to leave home before splashing your cash. And when you bear in mind that India has the fastest growing population of any large economy on the planet, that’s a lot of cash to splash.

High Yields, Low Interest

The Reserve Bank of India has held the all important repo rate at 4% for several months, and last month announced its intention to keep it there as long as necessary to support future economic expansion, which means two things for real estate. First, the consequential fall and resulting long term hold in deposit rates makes it more attractive than ever to invest in rental properties where yields are holding up at 3% annually: making even a relatively modest appreciation year on year increasingly attractive. And, secondly, tax breaks will bring down still further the real time cost of borrowing for those in higher income brackets, making the move to property investment still more advantageous. With a characteristic sense of understatement, Prashant Thakur (Director and Head of Research at the influential Anarock Property Consultancy thinks “buying now means buying at the lowest possible price”.

He might be right there…

The REIT Revolution

Prime Minister Modi’s Government introduced the Real Estate Investment Trust (or REIT) to the subcontinent in April 2019, with the aim of expanding commercial and property investment, and the pandemic has done little to dilute its impact. Even during the most stringent lockdown restrictions, rental collections, the lifeblood of any REIT, still remained strong through to the first quarter of this year at 97% saturation (according to Motilal Oswald Real Estate): underpinned, of course, by GST and RERA initiatives that have progressively improved liquidity levels within the financial system as a whole. 

Overseas investors haven’t been slow to pick up on the opportunities either, with a surge in levels of FDI likely to drive an even strong recovery in commercial and residential assets over the course of the year.

A Brighter Future

All of which is good news for the future of the subcontinent as a whole: real estate accounts for 7% of India’s economy, the second biggest employer in the country (after agriculture) and a cornerstone for employment in more than 220 ancillary industries. And current growth trends within the sector are projected to increase real estate’s share of the economy to 13% within the next four years.

So now is the time to build in India…now is the time to buy.

Executive Overview

Indian Real Estate has always been a key area of focus for us, and I’m genuinely excited by the trends emerging on the subcontinent as lockdown restrictions are eased. It is, indeed, a perfect storm for growth and opportunity.

 Invest in Red Ribbon Asset Management 

Red Ribbon is committed to identifying and building on investment opportunities that are fully in compliance with its core Planet, People, Profit policy: not only offering above market rate returns for investors but also protecting our Natural Capital.

If you would like to know more about joining our Mainstream Impact Investment journey click here

Building in Sustainability…Modular Construction has long-term answers for the Planet

By Affordable Housing, Construction Technologies, COVID-19, Housing Need, Modular Construction, News

What can you do with a broken brick, clotted with mortar and torn from the heart of a demolished building? Well, you could get more bricks, lay them in a line and offer them to the Tate Gallery as an “Installation”, but short of that (frankly unlikely) option, the brutal answer is “not very much”. And the same goes for all that twisted, rusting steelwork, left scattered behind on the demolition site. Like the broken bricks, it is almost impossible to recycle and will almost certainly end up in a landfill site. And at the other end of its clunking life cycle, traditional on site construction currently accounts for an extraordinary 36% of worldwide energy consumption and 40% of global CO2 emissions: all those trucks belching out exhaust fumes, crawling to and from inner city developments to feed the daily demands of dumpers, drills and jackhammers.

Across the World four billion tonnes of concrete are poured every year, adding 2.8 billion tonnes of CO2 to our precious and fragile atmosphere, which is more than double the 1.04 Billion tonnes of CO2 produced annually by worldwide aviation, even in the years before Pandemic restrictions more or less shut it down (www.ourworldindata.org).

You get the message…Dinosaur Construction isn’t good for the Planet.

Sustainable Construction

On the other hand, Sustainable Construction can put a stop to all that: making use of renewable and recyclable materials, reducing energy consumption and creating a healthy, environmentally friendly environment…not to mention protecting the Planet in the process.

So why, according to the 2018 World Green Building Trends, Smart Market Report (www.worldgbc.org), do more than 50% of construction companies still believe sustainable construction technologies are more expensive? Perhaps they simply prefer laying broken bricks in a line…in which case (to save them looking it up) the contact number for the Tate Gallery is +44 20 7887 8888 (its closed at the moment by the way).

But whatever their business plan, they couldn’t be more wrong…

Less Expensive, More Efficient

Sustainable Construction is not only less expensive than dinosaur construction technologies, it also supports lower operating costs once the building is completed: all of which feeds directly into the bottom-line.

Take Modular Construction for instance: pre-assembled units are manufactured off site in climate controlled conditions, which means fewer trucks choking their way to the site every day and fewer days lost with workers sheltered in huts from the rain. Buildings constructed using advanced Modular systems are 30% lower in price than their conventional equivalents and they typically re-use 80% of their components, which fits in perfectly with the demands of the Circular Economy (www.oecd.org): prolonging the useful lifespan of key components.

That all adds up to annual savings of more than £400 Billion across worldwide markets, added to which waste levels are lower too, so you may not need to contact the Tate after all…

Smart builders are already factoring these costings and efficiency savings into their tenders, offsetting front-end construction costs and reducing environmental impact as part of the new Circular Economy. 

What’s not to like?

Modulex Construction

Modulex Construction (www.modulexglobal.com) is the World’s largest Steel Modular Building Company. It was established by Red Ribbon (www.redribbon.co) to harness the full potential of fast evolving technologies and deliver at pace to meet the evolving needs of the community.

Executive Overview

I don’t think it’s sufficiently understood how energy hungry and polluting conventional construction technologies can be. So given current demands for affordable housing and new infrastructure projects, it really is time to look for some sustainable alternatives.

 Invest in Modulex

Modulex Construction is the World’s largest Steel Modular Building Company. It was established by Red Ribbon to harness the full potential of these fast-evolving technologies and deliver at pace to meet the evolving needs of the community

If you would like to know more about joining our Mainstream Impact Investment journey click here

Can Unprecedented Demand Create a Slump in Property Prices…Of course not, Global Real Estate is as Strong as Ever.

By Affordable Housing, COVID-19, Housing Need, News, Real Estate Markets

Buying an average London house would have set you back £55,000 in 1985: but the same house would cost £84,000 five years later, and by 2010 it was selling for £283,000. Last year it was worth £490,000. That’s an aggregate increase of 890%, which is a pretty good going, bearing in mind £55,000 invested in equities over the same period would now be worth £359,700 (240% less): added to which you can’t live in a pile of share certificates, and (unless you happen to be married to him (or her)), your broker won’t be cooking Sunday lunch any time soon. With bricks and mortar consistently outstripping equity markets for decades, it’s no wonder Englishmen (and women) treat their home as their castle: because their castles are more like Fort Knox…but that seemed set to change last year.

With gruesome inevitability, we are (of course) talking about COVID…

Economic growth slumped dramatically in the aftermath of the Pandemic: in the third quarter of 2020 the US Economy suffered a precipitous 31.4% fall in GDP (the biggest since the Wall Street Crash), and in the UK GDP fell by 16% over the same period. In India the equivalent figure was 23.9%. All of which had an immediate impact on property prices across the globe, with forecasts from March 2020 predicting a deep and sustained slump in real estate…because, so the theory goes, it’s hard to buy a new home if you’re locked down in the one you’ve already got.

All that changed in six short months…it was, after all, only a theory.

Property Markets on the Rise

By the end of the 2020 US real estate was already looking at record-breaking returns (in the right direction): according to Zillow (www.zillow.com), a total of 5.64 Million homes were sold in the United States up to the end of last year, a 5.6% increase on 2019; and average house prices rose by 8.4%. India had an even more spectacular year, particularly in the tech heavy, Chennai and Bangalore sectors… ESR Group (www.esr.com/en) predicts sales will continue to increase by a steady 3.8% going into 2021: the most optimistic projection since 2016.

And part of the reason for all this is, of course, the Internet which has become a much bigger and more ubiquitous part of all our lives: stuck at home and glued to the screen, buyers are more competitive these days, forced to move quicker to snap up their new home at the speed of an electron. And then there are lower interest rates too, the lowest for over three hundred years: the Reserve Bank of India is now widely expected to reduce its benchmark repo rate by a further 50 basis points by the end of 2022, expected to bottom out at 3.5%.

So however difficult the times might be (and there’s no denying they’re difficult), there’s never been a better time to buy a new home…

Over on the supply side, and largely as a result of the same criteria, construction companies are finding it increasingly difficult to keep pace with the demand for new homes and houses, all of which has contributed to higher prices: demand has increased by 50% since 2010, but supply has fallen by 33%, with a particular shortage in supply of previously owned properties. 

Affordable Housing

Sounds like good news then … but there’s a problem.

A combination of reduced interest rates and rising property prices is also likely to create a shortage in affordable housing. For those in housing need, escalating prices only exacerbate the problem, which in turn places an added burden on construction companies. That’s why more and more suppliers, every day and supported by government programmes and incentives are turning to Modular Construction to deliver that most basic of human aspirations:  the home of their dreams. 

A Castle they can call their own…

Executive Overview

As Mark Twain might almost have said, rumours of the death of Real estate have been greatly exaggerated: despite COVID restrictions, global property markets are booming and seem set fair to prosper over the course of the coming years.

 Invest in Red Ribbon Asset Management 

Red Ribbon is committed to identifying and building on investment opportunities that are fully in compliance with its core Planet, People, Profit policy: not only offering above market rate returns for investors but also protecting our Natural Capital.

If you would like to know more about joining our Mainstream Impact Investment journey click here

New Year, New Horizons… Modular Construction is Flexed for Success

By Affordable Housing, Construction Technologies, Housing policy, Modular Construction, News

It’s called Flex Space: adaptable real estate solutions for the home and workplace, addressing rapidly evolving changes in demand and product standards. No longer is it enough just to build a twelve story concrete block in the centre of town, hoping (praying perhaps) to fill it with residential and commercial tenants: because business owners don’t want (or need) those vast fields of space anymore, and those in housing need can’t wait two years for the monolith to be built up in a field of mud, steel and bricks. In the wake of COVID 19, office workers have become home workers, and there’s a worldwide shortage of affordable housing too. COVID has changed everything…

That’s why some of the world’s leading real estate companies are now re-formatting their platforms and services to embrace new technologies, staying on the front foot to add value and flexibility in these fast changing times.

According to a recent report from JLL (www.us.jll.com), 67% of decision makers in construction are either planning to, or already have, embraced Flex Space as part of their strategic objectives: so for sure, if ever innovative construction was a niche sector, it’s not a niche anymore. Optimising that crucial mix between asset efficiency and speed of delivery has become a priority.

Plug and Play Technology

The next step involves offering a more expansive and responsive product, so technology is predictably part of the equation: digital solutions that radically enhance standards by plugging directly into environmental systems, real time access to value added spaces and critical add ins, like life support systems in those new Nightingale Hospitals. It’s a “plug and play” operating model…and when it comes to Technology, Modular Construction is at the centre of everything: with an operating model that delivers space, people and technology at the core of the asset itself.

Sustainability and Durability

Modular Construction also typically re-uses 80% of its building components, fitting in perfectly with the demands of the Circular Economy (www.oecd.org): prolonging the useful lifespan of materials by combining modularity with durability and reducing embodied energy. A bio-composite exterior panel, for example, can reduce energy levels by up to 50% compared with conventional construction materials.

Speed of Delivery

And as for speed of delivery, modular buildings can be completed three times faster than their conventional counterparts: helping meet the needs of millions of people across the planet who are currently homeless or in housing need.

Affordable Homes

In their snappily titled report, “Build Homes, Build Jobs, Build Innovation”, Cast Consultancy concluded Modular Construction was flexed to deliver up to 75,000 new homes every year in the UK alone (www.cast-consultancy.com): Chief Executive Mark Farmer concluded that, unlike mud, steel and brick alternatives, Modular Technologies not only increase the pace of delivery in these unprecedented times, but also boost productivity, increase quality and significantly reduce carbon emissions. A Paper produced by Herriot Watt University found adoption of Modular technologies reduced emissions by 40% compared with conventional systems.

With COVID clearly in mind, Cast also drew attention to the significant additional benefits of offsite construction, which can be more readily adapted to the demands of lockdown restrictions and social distancing measures.

So all in all, as Mr Farmer said, Modular Construction is “the single biggest game changer when it comes to building more homes”: unsurprisingly the UK Government has taken up the theme and now plans a major new investment programme based on modular construction. The UK Housing Secretary, Robert Jenrick, is publically committed to Modular becoming “a significant part of our future housing investment plans”.

Who can blame him? Modular Technologies are all flexed and ready to go…

Executive Overview

The world is changing beneath our feet; we need to make the most of what we have. Every passing day makes it clearer that when it comes to the future of global housing policy, Modular Construction has the answers: faster, sustainable and better adapted to the needs of our changing world.

We need to build better…we need to do the best for our future

If you would like to know more about joining our Mainstream Impact Investment journey click here

Voting with Their Feet…Indian Migrant Workers are Redefining the Subcontinent’s Housing Market

By Affordable Housing, COVID-19, Housing Need, Housing policy, Modular Construction, News

India’s migrant workers are voting with their feet: streaming onto railways and roads, taking to bikes and byways and making their way back to the Cities they deserted in the aftermath of the pandemic. It’s the biggest movement of people on the subcontinent since Independence more than seventy years ago, and it’s set to have a profound impact on the future of Subcontinent’s housing market across India, from Chennai to Mumbai and all points in between (more of which in a moment)…

Movement of workers back to the cities

A recent survey conducted by the Inferential Survey Statistics and Research Foundation (snappy name, snappy stats) reported 67% of 2,917 migrant workers from 34 Districts are determined now to make their way back to jobs in the City (www.issrf.org.in): a fact already confirmed by the volume and value of cash transfers since the lockdowns were imposed in March.

That old reliable bellwether of migrant activity: sending money home to mum and dad. In the first few weeks after COVID-19 struck cash transfers fell in value by up to 90%, but now they’re back now at 85% of pre-pandemic levels…a sure sign workers are moving in high numbers from the countryside. And since August, non-suburban passenger traffic on India’s railways has virtually doubled.

It’s impossible to overstate the importance of this trend, given migrant workers make up 20% of the subcontinent’s workforce and play a vital part in the success of a number of key sectors: especially informal market segments and MSMEs, which together make up 50% of the subcontinent’s GDP.

No surprise then that for India’s construction sector, which is particularly reliant on migrant labour, the Modi Government has been keen to roll out a raft of new measures to make sure they get back on site as quickly as possible. In May the Minister of Home Affairs produced a policy paper recommending migrant workers should be automatically enrolled for Ayushman Bharat: the Government’s flagship health insurance scheme, providing them with ready access to cashless medical facilities on site (which the vast majority either don’t have back home in the countryside, or are denied by discordant local government regulations). There will also be a new Migrant Workers Welfare Fund to make sure help housing assistance gets to where its needed most (which in this case means India’s Cities: www.labour.gov.in)so you can be sure the pace of urbanisation on the subcontinent isn’t going to be slowing down any time soon.

India and the Subcontinent’s Housing Market

And given India’s already burgeoning need for affordable housing, it should come as no surprise either that the demand for City based real estate is likely to result in an unprecedented surge in real estate growth.

All those workers have to have somewhere to live…and there’s certainly no shortage in demand for something to build.

Which brings us back to Chennai and Mumbai: along with Bangalore, both have become centres of technological excellence, as India continues to establish itself as the planet’s distribution hub.

Skilled workers are moving there and new infrastructure systems (roads, railways and business parks) are being created on an almost daily basis, pushing house prices through the roof (so to speak). That’s undoubtedly a trend that is likely to gain added vigour from the return of migrant workers.

India needs those construction workers back on site, but it also needs to deliver affordable homes at sufficient pace to meet the dizzying needs of what was already the fastest growing population on earth.

That’s why developers on the subcontinent (and around the world) are increasingly turning into modular construction technologies, which not only reduce delivery times by 60% but also ensure cost efficient and compliant delivery standards. This is a sure-fire way to improve the subcontintent’s housing market.  

After all, as India votes with its feet, it also needs somewhere to live…

Executive Overview

Modular Construction delivers faster, at lower cost and with higher quality than traditional alternatives: it’s perfectly positioned to meet the growing demand for affordable housing, not only in India but also across the world.

So as we welcome news that migrant workers are coming back to the Cities, yes: let’s give them somewhere to live too.

If you would like to know more about joining our Mainstream Impact Investment journey click here

Better Connected than Ever? – How Connectivity boosts Indian Real Estate.

By Affordable Housing, Blackstone, Construction Technologies, COVID-19, Economic Growth, Environmental Policy, Housing Need, Housing policy, India, Natural Capital, News, Real Estate Markets, Sustainable Growth

All roads lead to other roads: a dizzying complexity of cables, rail and road networks have literally girdled the earth, making us better connected than ever before. A hundred years ago it took twenty days to travel by steamship from London to Mumbai, now it takes nine hours by plane.

Subject to lockdown restrictions, you can cross the English Channel in two hours by ferry (plus three more waiting for the driver in front to get back to his cab), or else zip through the Tunnel in 30 minutes; and the electrons that carry your Internet messages travel at 2,200 Km a second, which is probably why Zoom is doing so well at the moment.

But none of this happened by accident: it was all planned, built and delivered to meet economic demand…except, of course, the electron, which does what it does by itself. Economic progress is everywhere driven by connectivity.

And that’s where Big Government comes in: periodic swings in the private funding cycles needed to build all those airports, roads and railways are increasingly being offset by government deficit spending programmes (or quantitative easing as it’s now known: the deficit’s more attractive, younger sister). Only big government is big enough to dampen regular (and inevitable) private sector investment fluctuations, which is why most advanced economies over the last forty years have set fiscal spending targets of up to 20% of GDP.

Nothing less will level out the swings and troughs, and without it the roads, railways and airports won’t get built at all…the Channel Tunnel started out as a private venture, ran out of money and finished up nationalised in all but name. Without Big Government you wouldn’t be able to zip under the Channel …you’d be stuck behind a lorry at Dover.

It’s a lesson India has taken to heart.

Connectivity boosts Indian real estate. How?

Over the next ten years the subcontinent is expected to invest a staggering $715 Billion in its new rail networks, with full electrification expected by 2024 and the entire system becoming carbon neutral by 2030 (www.ibef.org/industry/indian-railways).

By 2050 India’s railways will comprise 40% of rail services across the world, meeting a surge in passenger numbers driven by an increasingly wealthy travelling public. All of this is being powered by Big Government (Prime Minister Modi’s Government to be precise): including a programme to expand investment in new rail terminals, new stations and more extensive container operations across the subcontinent (www.outlookindia.com).

And the picture is pretty much the same on India’s highways where the network has doubled in size (from 71,000 Km to 142,000 Km) in the last ten years. As with rail, the expansion is being driven at pace to meet unprecedented levels of demand from a burgeoning and increasingly wealthy population, in stark contrast with the United Kingdom where road traffic levels have increased by 80% over the last twenty years, but capacity has risen by a sluggish 10% annually: and even that unimpressive figure is falling off year by year.

All of which means India is now better connected than ever before; and in combination with those same (unprecedented) demographic trends on the subcontinent, enhanced connectivity is also having a radical impact on India’s domestic housing markets. New Science parks in Chennai and Bangalore and new railways and highways in Mumbai are pushing prices through the roof as an increasingly urbanised population embraces the opportunities offered by better communication systems.

The improvements to connectivity boosts Indian real estate. So with all roads leading to other roads, it means we’re better connected than ever before…but nowhere is that more apparent at the moment than India.

Invest in Red Ribbon Asset Management

Red Ribbon is committed to identifying and building on investment opportunities that are fully in compliance with its core Planet, People, Profit policy: not only offering above market rate returns for investors but also protecting our Natural Capital through innovative programmes like the Eco Hotels Project.

Executive Overview

I suppose it’s a truism that property values are all about location (and location, location): but what’s interesting in India at the moment is just how radically the location itself is changing.

Taken together with an increasingly wealthy, tech savvy and burgeoning population, the Modi Government’s radical infrastructure programmes are re-shaping the commercial environment and pushing property prices higher than ever before.

A Disruptive Innovator…Modular Construction has become Housing’s Future

By Affordable Housing, Construction Technologies, COVID-19, Economic Growth, Environmental Policy, Housing Need, Housing policy, Modular Construction, News, Productivity, Sustainable Growth

“The arrogance of success is assuming what you did yesterday is enough for tomorrow”: William Pollard wrote that 100 years before Disruptive Innovation theory was formulated in 1955’s Harvard Business Review, but he perfectly captured the essence and importance of understanding disruption innovation in a modern economy.

Think of established companies like Amazon, Google and Uber, business models that have all disrupted existing markets and delivered outcomes that are radically reshaping our future (and our present come to that).

But disruptive innovation is driven as much by market need as invention, and burgeoning housing demand across the planet is currently driving change like never before…so welcome to the world of Modular Construction, and a new future for housing.

Using outmoded technologies, traditional construction companies have become increasingly focused on long-term (high value) projects, where profit margins are high enough to nurture a culture of inefficiency.

All those piles of rusting steel and timber left scattered around when the project finishes, fossilised remnants of yesterday’s world: all those days lost to rain when workers huddle in huts waiting for the sun to come out, and still more days lost waiting for delayed (piecemeal) deliveries, brought slowly to the site by a seemingly endless convoy of lorries.

But, by definition, all that waste matters more if margins are tighter: on lower margin projects, waste and delay on such an industrial scale can turn a viable development into a loss-making disaster.

That’s why traditional developers have (traditionally) paid far less attention to affordable and mid market housing projects, preferring to focus on profitable customers and build yet another penthouse studded glass tower: the inefficiencies of their business model matter less when the client is a Russian oligarch.

Which means more rusting steelwork, more days lost and more time wasted waiting ankle deep in mud for the latest lorry full of bricks to make its way at walking pace through another inner city traffic jam. This outdated model largely ignores speed of delivery, because speed of delivery largely doesn’t matter. Russian Oligarchs have all the time in the world…they can wait.

But the homeless can’t wait: according to Shelter (www.shelter.org.uk) 320,000 people are currently homeless in the United Kingdom (one in 201 of the population), in the United States the figure is 567,000 (a year on year increase of 40% since 2017), and in India 1.77 Million are in housing need despite the Modi Government working to deliver its ambitious Affordable Housing Programme (www.bajajfinserv.in/housing-schemes), striving hard to meet the demands of the fastest growing population on the planet.

And that’s where disruptive innovation comes in…

Adopting smarter and more efficient technologies, smaller construction companies can challenge these dinosaur incumbents: targeting market segments they either can’t or won’t reach, and that means in particular the homeless and those in housing need.

Economic orthodoxy tells us these smaller (disrupter) companies will then move on to gain a progressive foothold in increasingly higher margin segments by delivering better functionality at a lower price.

By making use of their core technological advantage: and finally, the dinosaur developers will also adjust their own business model as disruption takes root: bad news for Russian oligarchs looking for another penthouse, good news for the rest of us.

Modular Construction is a paradigm case in point: units are fabricated off site and delivered in ready to build panels, so no more convoys of lorries delivering materials piecemeal and no more waiting endlessly for them to arrive.

Built to order in a controlled environment, modular units are also higher quality and waste levels are lower, and costs are lower too.

It enables modular platforms to deliver projects at a third of the cost of traditional alternatives, which is why they are moving into (and will eventually take over) lower margin segments in a way traditional developers at the moment find unfathomable.

And it’s why in time dinosaur developers will be forced to change their business model …that’s the power of disruptive innovation.

What we did yesterday is no longer sufficient for tomorrow: Modular Technologies are important for all our futures.

Find out more about Modulex

Modulex modern method of construction

Modulex is setting up the world’s largest steel modular buildings factory based in India. It was established by Red Ribbon to harness the full potential of fast-evolving technologies and deliver at pace to meet the evolving needs of the community.

Modulex is setting up the world’s largest steel modular buildings factory in India.

Executive Overview

According to McKinsey more than 80% of developers are now to a greater or lesser extent committed to modular construction models: that should come as no surprise to anyone. Modular construction delivers faster, at lower cost and with higher quality thresholds than traditional alternatives.

And now, more than ever, we need those benefits to meet the planet’s burgeoning housing need. It’s time for the world to move on…

red ribbon invest

What’s Growth got to do with it…as it happens plenty, and Indian Infrastructure is a key driver for Housing Policy

By Affordable Housing, Construction Technologies, COVID-19, Housing policy, Real Estate Markets, Sustainable Growth

Keynes wondered about kick starting an economy, paying people to bury bottles with £10 notes in them, and then paying others to dig them up and spend the cash. Of course, the great man’s tongue was probably firmly in his cheek, but he was making a serious point: modern economies are driven by expansionary policies. That’s what lies at the heart of quantitive easing strategies. But it’s much better to spend those £10 notes on roads that don’t go nowhere, which is why infrastructure policy is so important. And there’s no better example of that at the moment than India, which has seen unprecedented infrastructure spending over the last decade and COVID has done little to slow it down.

This month alone Indian Railways launched 22 new local and 18 main line services in Mumbai (on 10 October); on 12 October the 11 km rail tunnel connecting Howrah to Salt Lake (via Kolkata) was completed (part of a 17 km system including 6km of elevated sections), and the Union Ministry of Road Transport announced 2,921 km of new highways had been completed as part of the Bharatmala Pariyojana Project. All of which are having a knock on effect on expansion across key areas of the Indian economy, including housing and construction, which are growing like never before. Those roads certainly aren’t going nowhere…

Since 24 September The BSE Sensex Index (which tracks stock on the Bombay Exchange), has rallied by nearly 11%: its strongest performance since June, the best of any equity benchmark anywhere in the world. And it’s now within 2% of wiping out its entire losses for the year to date: given the economic shocks of COVID 19, that’s no mean feat. 

Sameer Kaira (of influential, Mumbai based Target Investing) has predicted a third quarter bounce in GDP on the subcontinent, with Sensex likely to hit a record high by December. With a Delphic sense of understatement, Kaira highlighted a key factor as “various steps taken by policy makers”. But what does he mean by that?

Well, for a start Prime Minister Modi’s Government is set to relax COVID restrictions further, allowing schools and entertainment complexes to re-open from October 15, and also loosen restrictions on large gatherings: so that’s certainly one important step from a policy maker. But more expansive policymaking hasn’t gone away either. The Reserve Bank’s Monetary Policy Committee has announced further steps to increase liquidity: leaving the repo rate (the rate at which it lends to other banks) unchanged at 4% and promising to maintain its “accommodation stance” well into the next fiscal year. The Governor of the Bank also announced another round of quantitative easing as part of its Operation Twist initiative, much to the delight of financial markets and external investors (10 year Bond yields fell to 5.9%).

All of which is fuelling the infrastructure boom.

And because all those roads, trains and tunnels aren’t going nowhere, its also giving added impetus to India’s Real Estate Markets: primed to meet the needs of the fastest growing population on the planet and spurred on by the Government’s Affordable Housing Programme. Better infrastructure suddenly makes building projects across the country a much more attractive proposition. 

It’s certainly better than burying cash in a bottle…

Modulex Construction is the World’s largest Steel Modular Building Company. It was established by Red Ribbon to harness the full potential of fast evolving technologies and deliver at pace to meet the subcontinent’s evolving needs.

Find out more about Modulex

This image has an empty alt attribute; its file name is Modulex-Logo-300x77.jpg

Modulex is setting up the world’s largest steel modular buildings factory based in India. It was established by Red Ribbon to harness the full potential of fast-evolving technologies and deliver at pace to meet the evolving needs of the community.

Modulex is setting up the world’s largest steel modular buildings factory in India.

Executive Overview

With a further easing of lockdowns underway, the subcontinent’s financial markets are starting to move forward: faster than other equity markets across the world. And that has a lot to do with the Central Bank’s Operation Twist Programme, which is fuelling growth across the country.

No surprise then that the impact of these emerging trends will be first felt in Infrastructure policy, something I’m sure will act as a key driver for the rest of the economy.

Red Ribbon

At Red Ribbon we understand that the transition towards a resilient global economy will be led by well-governed businesses in mainstream markets, striving to reduce the environmental impact of their production processes on society at large and on the environment as well.

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