Editor’s Note

Enclaves seem to be the predominant focus of this issue of Brigade Insight.

With two large enclave projects on our immediate horizon, that's probably not surprising. Brigade Metropolis and Brigade Gateway, covering 36 and 40 acres respectively, are our largest, most challenging projects to date. As pioneers of integrated enclaves in Bangalore, we will now be drawing on relevant experience and a deeper understanding of customer needs, to take the integrated enclave concept even further. Subsequent issues of Brigade Insight will keep you informed on the growth and development of both Brigade Metropolis and Brigade Gateway.

As you will read in this issue, economists and urban planners around the world now tend to view integrated or multi-use enclaves as possibly the most sustainable and economical way for a city to grow. On a more human level, enclaves may also give its residents a better quality of life than they could expect to find in any other urban environment.

It's been a busy and interesting time on other fronts too. We have several interesting projects in various stages of creation and construction in Mysore, The Woodrose at Brigade Millennium will soon be opening its sports facilities, our school has almost completed its first year…

Read on. And then let us have your feedback!

This year has witnessed frenzied construction activity in Bangalore and other metros. Many new projects, launched by different builders, offer consumers multiple options. However, increased activity is also causing growth pains, through shortages of critical construction materials and availability of quality staff and contractors to design/supervise and execute projects. This situation is bound to result in delays in the completion of a number of projects.

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Central and State budgets are, as ever, a mixed bag of good and bad pronouncements. The option of combining all I.T. Sec. 88 concessions (up to Rs 1 lakh) with the existing top deduction to housing loan interest payments (up to Rs 1.50 lakhs) is a benefit to taxpayers availing loans to buy their homes. However, imposing a service tax of 3 % + (net effect) on home-buyers is a retrograde step.

Similarly, while the Karnataka government deserves to be complimented for introducing Value Added Tax instead of Sales Tax, they seem to have missed the bus in implementing VAT in its true sense, at least as for as the Construction Sector is concerned. For us, this has effectively doubled taxes compared to the earlier sales tax on building contracts.

It defies understanding how a transaction like purchasing/contracting to build a house or apartment can simultaneously attract 3 kinds of duties/taxes—9.56% Stamp Duty and Registration charges (collected by the Revenue Dept of the State Govt), 12.5% VAT (collected by the Finance Dept of the State Govt); and 10.2% Service Tax (collected by the Excise Dept of the Central Govt). Isn't it absurd to consider the booking of an apartment/house, a sale, a works contract (now VAT) and also a service—all at the same time!!!

Such short-sighted policies, intended to mop up revenue at all costs, can turn out to be counter-productive. In my opinion, the three sectors that have been responsible for the turn around of the Indian economy are software, housing and infrastructure, and automobiles. While the software industry has acted as a catalyst to trigger the pace of development, the construction and automobile industries are the largest employers and have the maximum cascading effect as they support a number of other core sector industries. I only hope better sense prevails among the lawmakers and the government won't kill the goose that lays golden eggs!

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The other areas of general concern are the possible rise in interest rates, and the huge increase in world crude oil prices.

Sd/-
—M.R. Jaishankar
Managing Director, Brigade Group

Brigade Paramount Bhoomi Pooja
The Bhoomi Pooja of Brigade Paramount, our luxury apartments project on Old Madras Road, was performed on 15 March. The project offers 3- and 4-bedroom apartments and has a clubhouse, swimming pool, party areas and a landscaped central courtyard. Set back from the main road, Brigade Paramount is located near NGEF, conveniently close to ITPL, EPIP Zone, Indiranagar and MG Road.

Brigade Splendour Launched
Brigade Splendour, our sixth project in Mysore, was launched on 12 March. The project, located on the picturesque Lalitha Mahal Road, is a premium luxury apartments project offering 3- and 4-bedroom apartments. With a central courtyard, roof-top swimming pool, clubhouse, intercom facility from individual apartments to security and premium luxury specifications, Brigade Splendour is the first project of its kind in Mysore.

Brigade Point, Mysore, Bhoomi Pooja
The Bhoomi Pooja of Brigade Point, our first office building in Mysore, was performed on 13 March. Brigade Point is located on Gokulam Road in Ontikoppal, one of Mysore’s most sought-after localities. With it’s state-of-the-art office and retail space, Brigade Point is ideally suited for corporates.

Brigade Tranquil Inaugurated
An informal get-together of our associates and customers on
12 March, on the building’s terrace, marked the inauguration of Brigade Tranquil, Yadavagiri, Mysore. All the 3- and 4-bedroom apartments in the project have been booked.