Our world is in turmoil. The mindless war in Ukraine continues. The number of Covid cases across the world has gone up to 650 million with 1% mortality. In other words, about 6.5 million deaths. The numbers are going up in the United States and more particularly in China – thebirthplace of the Wuhan virus.
With inflation levels inchingtowards double digits in Europe and parts of America, talk of recession in the western world is gaining momentum. Our country, by and large, seems to be insulated. The question is for how long will we be insulated in this globalised world. Only time will tell. Despite what is going on around us, Indian stock indices have reached an all-time high! It is an enigma. There is money with the Indian public with few options to invest. Unfortunately, big investments in the industrial sector are not happening to the desired extent to match the government’s expectations. Probably, Indian businessmen feel the risk factors are high based on macro indicators with impending elections in many States during 2023, and the Parliamentary elections in 2024, which is not far away. To reduce inflationary effects, Central Banks across the world, led by the US Federal Reserve, have increased the base interest rates significantly. The Reserve Bank of India has followed suit. The full effect of increased interest rates is yet to be felt by the business community. However, it is bound to hit profit-ability across sectors and the risk factors of higher borrowing will only increase.
In such a scenario, the Indian real estate sector is holding the fort and has shown a lot of resilience. The residential sector continues to do well. Business in retail malls and multiplexes is at an all-time high. Hotel occupancies and ADRs have also bounced back and have exceeded pre-COVID levels in many cases. The only area of concern is office leasing business, where companies in the IT sector are showing cautious approach and postponing major decisions. Employment generation is a key factor for the health of real estate business. However, Indian companies in the software sector and GCCs (Global Capability Centres) expect higher offshoring over time to ensure companies profitability is maintained in their home countries.
Having received all approvals for our residential projects – Brigade Valencia on Hosur Road and Brigade Calista on Budigere Road, the team is geared up to launch both large sized projects in the new year. Response to our maiden large plotted development project – Brigade Oasis on Devanahalli to Doddaballapur Road is very encouraging, having sold the 1st phase in a short period.
Succession in leadership is a necessity at various levels in any organisation. The time has come for me to take a step back from day-to-day routine activities. Having crossed 67 years in age, our Board of Directors have decided to elevateExecutive Directors Pavitra and Nirupa to Managing Director and Joint Managing Director, respectively. They are both eminently qualified with MBA degrees from Ivy League colleges – Columbia Business School and Cornell Business School, and each with more than 15 years’ work experience. They are both young, energetic, full of ideas and ready to work hard. I will continue as Executive Chairman.
I am happy and proud that FKCCI (Federation of Karnataka Chambers of Commerce and Industry) conferred on me the ‘Bharat Ratna Sir M. Visvesvaraya Memorial Award 2022’ on his birth anniversary, September 15, which is also celebrated in his honour as ‘Engineers Day’, across the country. It is in recognition of my services and contribution in the construction and building sector, as well as in the fields of education, health, community development, social and philanthropic work. I dedicate this recognition to all in Brigade Group. Without the support of Brigadiers, it was impossible to achieve, whatever has been achieved.
Lastly, I wish all the Brigade stake-holders season’s greetings, and the very best during the New Year 2023. We need a Santa Claus for the business sector also.
—Jaishankar CMD, Brigade.
IT'S a great feeling to know that our flagship project, Brigade Gateway, continues to be recognised with awards. The most recent one is from CNBC AWAAZ: for Orion Mall, the WTC office building and the residential buildings—allconsidered the Best in Class.
With the launch of our much awaited Brigade Pinnacle luxury apartments, we have made our maiden entry to the city of Mangalore. Similarly, with the launch of Brigade Serenity, we have taken the Brigade presence to Chikmagalur, which happens to be the home town of Brigade Group’s promoters. In Bangalore, we recently launched Brigade Omega, on Kanakapura Road. Bangalore will witness a number of new launches from Brigade Group in the coming months.
Our association with Sporting Edge—an initiative of the legendary Australian cricketer, Steve Waugh—should be a great boon to the residents of Brigade Orchards and those living in its neighbourhood. Apart from cricket, Sporting Edge will set up Academies for swimming, athletics, football and basketball.
Brigade’s 'Experience Centre', set up on the ground floor of our headquarters at World Trade Center Bangalore, in the Brigade Gateway enclave, is a one-stop-shop for marketing properties promoted by Brigade Group, across cities. I hope this initiative will be appreciated by prospective customers.
Barack Obama continuing as the President of the USA for a second term is expected to bring stability to their economy. This should help Indian software companies, who have become the prime employment generators for the Indian educated middle class. This should also auger well for the property scene across the country.
Unfortunately, the political scene in our country continues to be unstable. It is extremely sad that an economy which was zipping ahead a few years back, is now limping along slowly due to complacency, lack of good governance and political fights. This ‘one step forward; two steps back’ approach by our government has hurt our growth badly, resulting in a widening gap between China and India. We, as Indians, are rich in potential, but poor in the ability to deliver.
While allowing FDI in retail is a step in the right direction, the number of onerous conditions imposed is unlikely to bring the desired results.
Narendra Modi's re-election in Gujarat for the third time has shown real development and good governance will be appreciated by all classes, castes and religions. This should be a great lesson for other states to follow; particularly Karnataka, which is continuing to suffer due to the political chaos in the state during the last few years. The saving grace is the availability of educated manpower, the good nature of people and salubrious climate in many parts of the state, particularly in Bangalore. This draws investment, in spite of the poor macro-environment.
The Reserve Bank of India, in its wisdom, is continuing to keep the interest rates high. This, of course, may be helping in containing inflation, but it is affecting GDP growth. Experts feel the high interest rate regime is likely to continue for the next few years. We should be grateful for the spirit of Indian entrepreneurs, who continue to remain positive and eager to perform, despite a plethora of not-so-friendly policies and an uncertain political climate.
Continuing atrocities against women in our country, particularly in the nation’s capital, are a matter of great concern. Only severe punishment and quick delivery of justice can help overcome the shameful problem.
Continents away, a culture of wild lawlessness seems to be making an entry into the USA. Their love for guns has created enough and more problems by way of inhuman killings. Despite this, no lessons seem to have been learnt, with the majority seemingly disinclined to bring about a change in gun control policies.
The expected 'End of the World' as per the Mayan calendar hasn’t happened … thankfully! Mankind has survived. We can relax and celebrate—and welcome the New Year. So here’s wishing all of you season’s greetings and a great 2013.
THE last few months have been event-filled and eventful at Brigade Group. In June, we successfully bid for a prime property of Hindustan Unilever and have taken private equity, for the first time, from the very reputed and huge sovereign fund of Government of Singapore (GIC). July saw the successful launch of Value+ Homes at Brigade Orchards, Devanahalli. To name a few more of the many significant events that took place in this period: we opened a representative office in Silicon Valley, through a tie up with Legion Real Estate; Orion Mall went into top gear with events; and another round of successful property exhibitions—Brigade Showcases—were held across India and abroad.
CREDAI, the industry body, recognising Brigade Gateway as the Best Integrated Township and WTC as The Best Commercial Office Space in the country is the icing on the cake. I thank the leading industry magazine,Construction World, for their editorial decision to bring out a special supplement on Brigade Gateway. When the editors visited Brigade Gateway, they were so impressed with the project that they took an instantaneous decision to feature it in a supplement!
IT feels good to get the recognition of Great Place to Work Institute for the second year in a row. Our standing has improved. On the subject of Brigadiers, I am amazed at the wealth of cultural talent in Brigade Group, which was wonderfully evidenced in the Annual Culture Fest.
PEOPLE in the know say that most western economies—the USA and Europe—are recovering. The gloom and doom of last couple of years should soon be over. But unfortunately, our country and state are continuing to witness political chaos and rudderless governance. With a billion-plus population and huge internal market, there was no need for India to be in this position after many years of 8%+ growth. It is a self-inflicted injury; the result of carelessness, complacency and lack of vision and thought for the future. I heard in a talk given by Singapore's Urban Development Minister last year at the CREDAI Annual Convention that after their Independence in 1965, the vision of the Singapore government was to make Singapore like our Calcutta! (Yes, one may feel it difficult to believe this!) Singapore’s current situation shows what one can achieve with proper vision and a desire to do good for the country.
As if adding insult to injury, many parts of Karnataka are facing drought. The weather pattern across the globe seems to have drastically changed, making meteorological predictions that much more difficult. Care for the environment should be the top agenda for any city, state or country.
THE demand for housing continues to be healthy, but is becoming more segmented. Still, there is a crisis of confidence in the way the economy will shape up in the months ahead. Top level changes in the finance ministry at the centre are expected to bring some cheer, after all the policy damage created in the last one year.
THE festival season has begun. It gives reason for people to forget the tough realities of life and celebrate with their near and dear ones. We wish you the very best for the festival season.
APRIL 21, 2012 was a red letter day for Brigade Group—the day that Orion Mall was completed. What sets this day apart as an especially significant milestone in our history is that it marks not just the completion of the mall, but, more importantly, the completion of an iconic project: Brigade Gateway. Both the enclave as a whole, and the individual components within it—Orion Mall, World Trade Center, Sheraton Hotel, Galaxy Club, The Brigade School, Columbia Asia Hospital—have set new standards in development. Brigade Gateway has set benchmarks for others to follow. The Orion Mall launch event itself was considered by many to be the best product launch ever in Bangalore. This milestone, coupled with shifting of our Corporate Office to WTC @ Brigade Gateway, should be considered a new chapter in the life of the organisation..
Sheraton Bangalore Hotel @ Brigade Gateway received a coveted recognition at the annual HICSA Conference of HVS: as Best New 5 Star Upscale Hotel in South Asia in 2011. What is significant and very satisfying is that our Mercure Homestead Serviced Residences (now Grand Mercure) won a similar award in the Apartment Hotel category in 2009, making both of our hotel properties the 'best in class'.
As they do every year, the Central and State budgets, in the first quarter, bring new taxes and reliefs. While the Karnataka budget was thankfully mild, giving relief by way of reduced Stamp Duties, the same cannot be said about the Central budget. Excise Duties and Service Tax was increased substantially, adding to inflation when the government is talking of reducing it! While 50 basis points interest reduction by RBI is a positive step, it is insufficient to boost the industry and trade sentiment. It is to be hoped that a further reduction in interest rates will be announced soon.
Finance ministry’s flip-flop policies in taxation, particularly with retrospective effect, has sent a scare to foreign investors affecting fresh FDI into the country. Retrograde legislations like GAAR will only make matters worse. The country has to stop the 1-step-forward-and-2-steps-backward approach to development issues.
The mood among industrialists and businessmen continues to be subdued, with not many positive signals or developments seen in the national and international scene. With all the efforts being made by the European leaders, one is not sure whether the debt crisis bothering Europe (and, in turn, the world) is over.
The power crises in the mid-90s prompted both central and state governments to launch many power sector projects, which helped improve the situation over the past ten years. Then complacency set in and most states are back to a power-starved situation. Power sector policy paralysis has only worsened the outlook for relief in the near term, which is bound to have an adverse effect on GDP growth. The not-so-encouraging monsoon prediction will be a matter of concern to all.
A study by the National Housing Bank, published in Times of India on 21 April, says that real estate prices in Namma Bengaluru have been one of the slowest to rise during the last five years, in comparison to other cities. For the most part, Bangalore rates have remained at what they were in 2007. This should make buyers act fast in making their investment decisions, which, in turn, will bring some cheer to the developers.
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