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On the other hand, GST implementation is a mammoth effort. We must credit the State & the Central Government for all the proactive steps, they are taking to make this most complicated initiative a success. Over time, the benefit to the country will be immense and there will be a paradigm shift in the way, business is conducted across the country. While there are many critics, one should remember - Nothing ventured, Nothing gained. GST is one major legislation to help integrate our subcontinent. It is generally felt that other initiatives like ‘Make in India’ are beginning to make the intended impact, as order books of several Indian manufacturing companies are believed to be full.
The much-awaited RERA has come into effect in most States during the last 6 months. It is bound to have its disruptive impact on the sector but will help separating the ‘grain from the chaff’. Realizing that the Indian Real Estate is still reeling under the three-pronged attack (Demonetisation, GST & RERA) , the Central government has liberalized the Pradhan Mantri Awas Yojana (PMAY) scheme by extending credit linked subsidy of about INR 2.30 lakhs to even good sized apartments of upto 150 sq. mts. for people with income up to INR 18 lakhs. This should surely help in giving the required push, to improve demand for real estate. With ‘profit booking’ expected in stocks & mutual fund investments, some amount of the profits are expected to flow into the Real Estate sector, which is also showing ‘green shoots’ in Q3 as compared to earlier quarters.
During the last few months of the year, we were able to complete a number of projects (Brigade AT No 7 in Hyderabad; Brigade Mountain View & Pearl at Brigade Palmgrove in Mysore; Brigade Cosmopolis and Brigade Lakefront ‘A’; Brigade Omega and Wisteria @ Brigade Meadows; Cedar, Deodar and Parkside @ Brigade Orchards; Brigade NorthRidge; Brigade Bhuwalka Icon, all in Bangalore). Our 274 keys CBD hotel, Holiday Inn Express Race Course Bengaluru became operational helping us cross the magical 1000 room mark, under our portfolio. And we are gearing up to launch several exciting, new Commercial & Residential projects, mostly in Bangalore and a few in Mysore.
With all the surprises and shocks of the last twelve months behind us, one hopes that the New Year will auger well for Brigade and for the Indian economy. With that hope, wishing everyone, Season’s Greetings and a Happy and Prosperous New Year."
—Jaishankar CMD, Brigade.
The Completion of Brigade Gateway Residential Block is a major milestone achieved. While significant completion has happened, the snag rectification of individual apartments and overall fine tuning is a challenging process, requiring great care and patience. The Brigade Gateway campus is looking better and better as it moves towards total completion. The Brigade School will open in June 2010. The Galaxy Club should open in a couple of months. WTC Bangalore, Orion Mall and Sheraton Bangalore Hotel are also getting ready. As far as I know, Brigade Gateway is the most integrated enclave in an urban centre anywhere in the world! The total integration of residential with offices, retail, hotel, medical, educational and recreational facilities within the city, is unprecedented. The convenience of living in such an environment will truly be a great experience.
While the Indian economy has shown stability, it is getting affected by the shaky European economy. Mounting debt in Greece, Portugal, Spain and even Italy has started creating a ripple effect. I hope the governments in EU countries won’t let another 2008 kind of situation happen.
Central and State Budgets of 2010 have come and gone without giving any relief on applicability of multiple taxes to the same real estate transaction. India could be the only country with the dubious distinction of treating purchase of a property under construction from a developer as: firstly, ‘transfer of property’ attracting stamp duty; secondly, as Sale of Goods under VAT rules; and, to make matters worse, as a Service under the Central Government Service Tax Rules. The desire to get revenue has made the authorities/law makers blind, with the result, citizens have to live with this unfair tax treatment.
Brigade Group is trying to launch a number of new projects in all segments and categories—residential, office, retail and hospitality. But the procedures and the need to meet more and more rules and get permissions is making the process very cumbersome and time consuming…resulting in an increase in overhead costs, which negatively impacts on the product price.
Our Mercure Homestead Residences will soon be rebranded as ‘Grand Mercure’ (a higher rated brand of Accor Hotels worldwide). Our Mercure property recently received an award—from the globally recognised Hospitality Consultants, HVS—for Best New Hotel in South Asia in the Serviced Apartment category! To cap this, the Ministry of Tourism has also given a 5-star rating for Mercure Homestead Residences.
It is heartening to get recognized again by the well-known Realty Plus magazine as the Best Regional Developer (Residential) in 2010 for the Southern Region. So also by Construction Source India as the Best Developer in Residential Infrastructure.
In the next few months, Brigade will concentrate on total completion of its many projects which are in final stages and sale/lease of balance stock of residential, office and retail units—apart from making persistent efforts to create new stock quickly. I look forward to continued support and patronage from our clients for our new launches.