Founder's Message
We are in the middle of the 2024 parliamentary elections. What the resilient Indian economy needs is a stable government with a vision to make India into a seven trillion dollar economy by 2030, and to give ‘a better quality of life’ to its large masses. By June, we will know who will be in the saddle to lead the country for the next five years.
The huge population of India, what seemed like a curse few decades back, is now being portrayed as a ‘demographic dividend’ with 60% of India’s population below 35 years of age. The growth in GDP and, in turn, increase in per capita income is surely helping millions of Indians to come out of poverty month after month, thereby increasing domestic demand for products and services. PM Modi’s push to increase manufacturing activity through PLI and other schemes is slowly but surely helping create lakhs of blue collar jobs, although Vietnam seems to have over taken India in benefitting from the China Plus One strategy of MNCs.
While the world is chugging along with all the strife in Eastern Europe and the Middle East, one never knows when and what will upset the delicate balance that is making many countries function as if ‘nothing is happening around them’, and everything is ‘bold and beautiful’! Terrorism in di erent forms is the greatest threat to development and existence in the world. Israel’s response to the Palestinian terrorist activities is too severe and tough for us Indians to understand, as we are used to the soft pedalling nature of our governments in the past. It is very important for the ongoing conflicts to end for peace and co-existence.
The Indian economy is generally firing on all cylinders, and I wish it continues to do so, thereby helping achieve the aspirations of millions of Indians. With a higher educated younger population from rural areas seeking new pastures, urbanisation is increasing, as witnessed earlier in China and many other countries. Most countries with high industrialisation have upwards of 65-70% of its population in urban centres, as compared to 35-38% of Indians in urban centres due to India's economy still being dependent on agriculture in a big way. With greater urbanisation, one can imagine the increase in demand for housing and necessities like clean air, food, water, entertainment and good infrastructure.
Happy to record the good performance of Brigade in the financial year closing March 2024. We made fresh sales exceeding 7.50 million square feet, earned lease rental income of upwards INR 900 crores, and all eight operating star hotels posting best results.
The momentum for growth will continue as long as the Indian economy continues to perform well. There is no doubt on this aspect. We are still a country with a low per capita income below USD 3000, and a low global ranking of 125 out of 200 countries. One needs to look towards China to know what happens to the country’s economy and prosperity of its people when the per capita increases to $5,000 or $7,000 or more.
The Global Business Forum 2024 of WTC Association New York, hosted by our World Trade Center Bengaluru in March was a resounding success with the participation of more than 200 international delegates.
Jt. Managing Director, Nirupa Shankar qualifying as an ‘Ironman’ at the Copenhagen event is a phenomenal achievement due to the sheer toughness and endurance required.
As part of our CSR initiatives, Brigade is happy to have undertaken the much required renovation of the well-known state government owned Venkatappa Art Gallery. It should reopen by the end of the year. The 108-bed hospital, a philanthropic initiative in association with St. John's Medical College Hospital is in its final stage of completion at Brigade Meadows, Bengaluru South.
In closing, we should all hope and pray that our country and our state get a good monsoon to bring smiles to both rural and urban population alike, including the parched throats of Bangaloreans.
JAI HIND.
—Jaishankar CMD, Brigade.
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Half of calendar year 2023 is over. Unfortunately, there isn’t much ‘feel good’ news in the world, except in India, Middle East & few countries in Southeast Asia.
The mindless war between Russia & Ukraine continues. Other than helping clear the stockpile of weapons in few western economies & securing billions of dollars of fresh orders for manufacture of weapons, it has only resulted in destroying large areas in Ukraine & displacing millions of its citizens. The war resulted in much of Europe to go into recession. From a unipolar world with United States ruling the roost since the disintegration of USSR during 1991-92, the world is getting back to a bipolar world with the 2nd largest economy of the world, the communist China supporting Russia.
While politically the world has become bipolar again, economically countries have become more interdependent than ever before due to globalisation & WTO policies. This is posing a huge challenge to different economies, particularly to the United States and to the countries in Europe.
The Indian Government has played its cards smartly. Our country is beginning to see the benefit of China+1 strategy of the developed economies, not only for sourcing their product requirements, but also because they see India as a good investment destination. This has greatly helped the Indian economy to become resilient and not be affected so far by the war in Ukraine. The best indicator is the stupendous increase in Sensex & Nifty indices and Indian foreign exchange reserves crossing US$ 600 billion again. Many senior bankers feel that for the 1st time after many many years, all sectors of business are doing well. One can only hope this good show sustains for a longer time thereby helping Indian GDP reach US$ 5 trillion, sooner than later. The spoil sport can be poor monsoon, interest rate increase and unexpected events like political turmoil.
The ruling party at the centre got the shock of its life by badly losing State Elections in Karnataka. The smart electorate of Karnataka has punished the unexpected poor performance of the previous Government, apart from succumbing to the lure of multiple freebies offered by the winning party. While this has invigorated the opposition parties against the ruling party at the centre, it has also made the 2024 parliamentary elections more unpredictable. Anything can happen. What India requires is political stability and retaining its position in the world order & the goodwill generated during the past few years. What all this means to the business is the question? Uncertainty to a great extent. One never knows when the current positive sentiments will start turning negative, though there is absolutely no indication at present.
The Residential Real Estate sector is continuing to grow in a healthy way. Financial year 2023 is the best so far for the sector. The WFH/ A (work from home/ anywhere) culture continuing in a big way in USA & Europe has created millions of square feet of vacant office space in those countries, which has resulted in cautious approach by Indian & MNC companies in the tech sector to sign up new office space. Most experts feel this could be a cyclical and temporary phenomena. The good news is many MNC companies are increasing the size of their GCCs (Global Capability Centres) in India as a way to cut costs by offshoring work thereby helping to retain/ improve their profitability. This is the saving grace for the Indian Office Real Estate sector. The data localisation policy of the Indian Government has also resulted in increased demand for Data Centres. So also, the growing organised retail business has increased the demand for Fulfilment Centres/ Warehouses.
In such a macro environment, Brigade is trying to play its cards well but carefully. We have made headway in increasing our presence in Chennai significantly. We are trying to do the same in the highly competitive real estate market of Hyderabad.
While a number of new launches are slated in this financial year, obtaining civic authorities approvals is becoming more challenging than ever before, for a variety of reasons. By adhering to the multiple rules, administrative procedures and after overcoming red tape, if one succeeds in real estate business in India, they deserve to receive accolades and a pat on their back.
Rightly, the new Congress Government in Karnataka is talking of ‘Brand Bengaluru’ – to improve the image of the city which has taken a beating due to severe traffic congestion, insufficient infrastructure planning & implementation. Bengaluru deserves much better treatment by the State Govt.
Bengaluru, which contributes more than 50% of the tax revenue of the State; should receive similar share in the expenditure budget of the State to improve its infrastructure. Bengaluru is not just a city of Karnataka, it is now a Global City, known for innovation and home to 100s of MNCs.
Hyderabad with its superior infrastructure is already breathing down Bengaluru‘s neck and sure to overtake Bengaluru as an attractive investment destination, if the Karnataka Government continues to be complacent.
The advent of ChatGPT & AI (Artificial Intelligence) into our lives, slowly but surely, will have a profound effect, not fathomed by us so far. It will become a necessary evil in the years ahead. While there would be demand for people with new skills, it may also lead to thousands of job losses. So, it is very important for people and businesses to gear up the skills to keep pace with the ever changing technological advancements.
The festival season is approaching. My warm season's greeting to all our readers.
JAI HIND.
