Results of Indian Parliamentary elections, is bound to have far reaching impact on the future of the country for the next 5 years and probably many more years. Managing 900 million voters is a daunting task, which the Indian Election Commission has mastered like nobody else in this world. What is required is stability and a strong purposeful leadership to take this country of 1.2 billion people forward. Our country was the major economy of the world 4 centuries back but lost its position due to colonial rule and missing industrial revolution. While it is poised to become the 3rd largest economy of the world in the next decade, per capita income must cross US$ 5000 for poverty to be eliminated.
During the last 3 years, Real Estate Sector has been facing the brunt of the Government’s policies - DeMo, RERA & GST. Though some aspects of the policies are positive, it did unsettle the Sector for couple of years. While business was appearing to return to normalcy, the GST Council has made major changes in GST rates, methodology & treatment for residential real estate. One fails to understand the logic of these changes which goes against the very essence & principle of GST. While, in its wisdom, the intent may have been to reduce the impact of GST for housing, the changes effective from April are counterproductive except for premium housing (square foot rate of Rs 10,000 & more. See page 56 for more information. Unwittingly, it is a wrong step towards reaching ‘Housing for all’. It will be a challenge to make customers understand the real negative impact of recent changes in GST for residential sector. Hope the GST Council realises this anomaly and takes corrective steps soon. So also, the anomaly on GST rate of 28% on Cement, which is a major ingredient for civil construction industry. 28% rate is meant only for ‘luxury’ & ‘sin’ goods. Big question - Is using Cement in construction a ‘sin’? Good to get an opinion pool.
The last few months saw a flurry of new initiatives at Brigade. Starting with signing an MoU with the Government of Tamil Nadu to set up World Trade Center (WTC) Chennai and an MoU with Government of Kerala to set up WTC at Thiruvananthapuram. Also, the launch of Art Café at Brigade Gateway and most importantly our foray into Co-working business segment with the launch of BuzzWorks!
The last two quarters also witnessed the completion of 10 projects - Brigade Lakefront (2nd Phase), Brigade Tech Gardens (1st Phase), Plumeria @ Brigade Meadows, Brigade Panorama, Arcade, Cedar & Deodar @ Brigade Orchards, Brigade Atmosphere (1st Phase), Brigade Symphony (2nd Phase), Mysore and our 1st hotel in Kerala, Four Points by Sheraton, Kochi InfoPark.
Our new project Brigade Cornerstone Utopia, a 6 million Sq.ft. mixed-use development in 47 acre will be very unique and is bound to become a major landmark in Whitefield zone. Response to the pre-launch was very encouraging. Few other major launches in the next few months will be Brigade El Dorado, in Aerospace Park near Bangalore Airport, Premium Residences @ WTC Chennai and 2nd Phase of Brigade Xanadu, Chennai.
With sincere hope for a good monsoon, a good and stable Government at the centre for a better India, I convey my best wishes to all our associates, customers & staff, and seek their continued support."
—Jaishankar CMD, Brigade.
SINCE our previous issue, much has changed in India’s political scenario. Thankfully, a single political party, for the first time in 30 years, has secured majority in the world's largest parliamentary election. Sri Narendra Modi's win has surpassed the BJP's own expectations. The positive sentiment it has created can be judged by the way the stock market has reacted and from the poll results to Team Modi's 100 days in government. Our elected representatives have a long way to go in enabling the Indian economy to reach its potential and in converting expectations into reality. The challenge of making the 'elephant in slumber' run is huge; but it is possible, judging by Deng Xio Ping achievements in China in the 1980s. The Indian economy needs to be unshackled from bureaucratic controls and inconsistent policies. By implementing forward looking policies, the government should assume the role of a good facilitator, encouraging business and industry to flourish. One hopes the lack of a good monsoon will not adversely affect progress, given the historical fact that the share of the services sector in the Indian economy has been more than that of the agriculture sector.
With a few exceptions, the effect of improved sentiment in the economy has not yet had a positive effect on the Indian real estate sector. In any case, due to its very nature, the real estate business is slow to react—unlike the stock market or gold, which are always regarded as alternative investments to real estate. But considering our Prime Minister's desire to provide 'housing for all' by 2022 (the 75th year of Indian independence), the potential seems to be immense. The task, however, is daunting. The government should also aim to provide clean air, clean water, good sanitation and electricity to the entire population. Why should Indians be deprived of the same quality of life that we see people enjoying on our travels to the Far East, Europe and America? Indian citizens certainly deserve better facilities.
A significant development at Brigade Group is, of course, the understanding with GIC of Singapore to jointly invest up to INR 1500 crores in real estate projects. It is a show of confidence in a relationship that began with our joint acquisition and development of the Brigade Cosmopolis property. I hope and wish the association becomes stronger in the years ahead.
The internationally recognised Great Place to Work Institute and Economic Times have, for the fourth consecutive year, rated Brigade Group as one of the best places to work. We have been ranked second amongst real estate companies and 87th amongst all companies rated in the country. It is a satisfying recognition of our efforts to create a good working atmosphere for our people.
As part of our CSR, we have installed—for the first time in Bangalore—a pedestrian skywalk with escalators on Dr Rajkumar Road, in front of Orion Mall, for the convenience and safety of the general public. If we are to tackle the problem of indiscriminate pedestrian movement across our roads, the city should have more skywalks and subways, preferably with escalators.
Responses to pre-launch bookings for Brigade Panorama, Mysore Road and Brigade Northridge, near Yelahanka, have been good. The same is the case at Brigade Mountain View, Mysore. We are happy to note that handing over of the first set of apartments to clients has started at Brigade Meadows, our large integrated project on Kanakapura Road.