Founder’s Message

Dec 2017

It may seem strange that while the Indian economy is subdued, the Indian stock market indices are breaking records every other month. While too much hot money is channeled into the stock market, one only hopes, that this reflects the underlying strength of the economy

Our country is slowly but surely recovering from the shock of Demonetisation and GST. Unfortunately for the government, Demonetisation did not succeed as expected and it also did not give the government, the expected windfall. Despite this, Demonetisation was a bold initiative which helped in bringing idle black money into mainstream circulation, resulting in softer interest rates.

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’. Realising that the Indian Real Estate is still reeling under the three-pronged attack (Demonetisation, GST & RERA), the Central government has liberalised the Pradhan Mantri Awas Yojana (PMAY) scheme by extending credit linked subsidy of about `2.30 lakhs to even good sized apartments of upto 150 sq.m. for people with income up to `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 augur well for Brigade and for the Indian economy. With that hope, wishing everyone, Season’s Greetings and a Happy and Prosperous New Year.