Daijiworld Media Network - Business

Mangaluru, Dec 9: Incorporated in 1995, Brigade Enterprises Limited is a leading real estate developer in South India and has gained the reputation of being one of the most trusted brands in the industry. Brigade is headquartered at Bengaluru with branch offices across South India, a representative office in Dubai and an accredited agent in the USA. Its diverse business portfolio spreads across residential, offices, retail and hospitality domains. Apartments in various budget ranges, penthouses, villas, value homes and retirement homes complete the bouquet of Brigade’s residential offerings.

Brigade is among the few developers who also enjoy a reputation of developing Grade A commercial properties. The World Trade Center, Bengaluru, software and IT parks, SEZs and stand-alone offices have reputed international clients operating from them. Brigade's retail projects include Orion Mall, India's first Lifestyle Mall, exclusive shopping areas in star hotels and large format hypermarkets. Its malls also offer a host of entertainment facilities including multiplex.

Brigade pioneered the concept of integrated lifestyle enclaves in Bengaluru. The iconic and award-winning 42 acre Brigade Gateway in Bengaluru is perhaps the only such development in the country where a 30-floor office tower - The World Trade Centre, Bengaluru, 1260 premium apartments, Lifestyle Orion Mall with multiplex, the 5 star Sheraton Bengaluru Hotel, Brigade School, Columbia Asia Hospital and Galaxy Club co-exist around a serene 2 acre manmade lake as a fully integrated and cohesive enclave.

Brigade offers various options in the cities of Mysuru, Chikkamagaluru and Mangaluru. Brigade 'Pinnacle' is located in Derebail, one of the fastest growing localities in Mangaluru. It comprises three 18-storey towers, and is a residential project that epitomizes luxury and style. The apartments with contemporary layouts offer a modern lifestyle and are meticulously designed to offer excellent light and ventilation.

Brigade 'Pinnacle' has a Clubhouse with lifestyle amenities that include a swimming pool, gymnasium, and recreation zone for a healthy and balanced lifestyle.

Brigade introduced the concept of serviced apartments to Bengaluru in 2001. Today, the Group has strengthened and diversified its hospitality portfolio to 5 star hotels – including the Sheraton Bengaluru Hotel at Brigade Gateway and Grand Mercure, clubs and convention centres in Bengaluru and other parts of South India.

The Brigade School was established to further Brigade’s corporate philosophy of 'for a better quality of life' to the realm of education and operates from 3 locations in Bengaluru.

The Brigade stamp of innovation, quality and trust speak of a standard that has been established, and is consistently being upgraded by its continual efforts to provide a better quality of life.

Om Ahuja, CEO Residential, Brigade spoke to daijiworld about various aspects of the real estate sector especially in Mangaluru, Brigade's plans and much more.

Excerpts

1. What is the general trend in the real estate scenario?

Commercial (office) real estate has seen dramatic turn-around in terms of demand in the last 18 months. Bengaluru, Hyderabad and Chennai are currently witnessing shortage of availability for Grade A Office supply. This is leading to increase of rentals and capital values for office space in these specific cities. Bengaluru alone leased over 11 million square feet of office space in the year 2014-15. Each 100 square feet of office space leased generates one new job. Bengaluru is generating over 1.1 lac jobs every year and this trend is picking up dramatically. New jobs will lead to higher demand for residential real estate.

Residential real estate is at inflexion point, in the same position as commercial real estate was 36 months back. Whoever bought commercial real estate 24-36 months back has already seen over 25% appreciation in capital values. We expect whoever buys residential real estate now, will look at making good capital appreciation in the coming 12-18 months.

In Bengaluru, Brigade Gateway that was developed as the best integrated township of India a few years back, currently commands 50% higher premium when compared to other projects in the vicinity. This is the advantage of buying into integrated township.

2. Is it true that the real estate field is going through a tough time in a city like Bengaluru?

Commercial real estate in Bengaluru is doing exceedingly well in all terms (demand, rental values, capital appreciation). Higher demand in commercial real estate is key indicator of the city doing well, residential real estate also in key pockets is doing exceedingly well. Capital values of residential real estate are going up reflecting appreciation. Media reports stating oversupply is true in some pockets like Electronic City and Banergettta Road. But the areas like Whitefield, North and South Bengaluru are witnessing good demand with more jobs and there is good possibility of good capital appreciation in the next 12 months.

3. Mangaluru real estate market is said to be steady. Your comments?

Mangaluru is uniquely positioned when it comes to potential. Recently the government declared Mangaluru as a (future) Smart City and with NDA government keen to develop 99 smart cities in India, Mangaluru is the only well known city from Karnataka in the list. Mangaluru city has huge growth potential with international airport, sea port and rail connectivity and a few large banks' headquarters in the city, an advantage when compared to other smart cities. With this growth potential, real estate in the Mangaluru city is clearly undervalued and untapped. We expect Mangaluru to see multi-fold growth in the coming years leading to serious growth in capital values.

4. Is the real estate market in Mangaluru realistic?

Mangaluru real estate market has been witnessing change with reputable and credible developers entering the market. Brigade Group is known for bringing integrated township and upscaling the lifestyle of residents in Bengaluru. In our project in Mangaluru (phase I), the buyer profile is really good. People who value lifestyle, quality and profile have bought their homes here and not compromised on quality and price. Senior bankers working in Mangaluru, senior corporate employees, business house owners and NRIs have bought their homes with us. This reflects that people value quality projects in the city. We are working on bringing commercial project that will benefit specifically residents of our project Brigade 'Pinnacle' in Mangaluru.

5. Is it true that Mangaluru real estate market is unique and immune to the trends witnessed elsewhere in the field? Is it true that Mangaluru real estate market is developing into an end user driven market?

Mangaluru for our project Brigade 'Pinnacle' has been end-user, we have good profile of buyers and that's most important. Mangaluru city currently has huge potential for quality product and that's why we are seeing buyers taking this advantage. In Mangaluru city currently there is limited supply of quality integrated township and that's where end users find limited choice to upgrade their lifestyle.

6. Is it true most demand for real estate is from NRIs as a means of investment, giving a big fillip to real estate sector in this port city?

The buyer profile is well diversified in Mangaluru. NRIs constitute a good share of the pie currently. In terms of Brigade 'Pinnacle' project, the buyer profile is kept in mind and we are working towards ensuring the project when delivered has good occupants and residents. Brigade 'Pinnacle' will have bankers, corporate executives and businessman as its occupants making it the best project to live in the city.

This has dual advantage, good residents mean good lifestyle and good rental yield. This will lead to higher capital appreciation in the coming months. NRIs should be cautious when it comes to buying apartments, not get stuck where the profile is full of NRI buyers.

7. What factors have contributed to the stability of real estate in Mangaluru?

Fortunately Mangaluru has no speculators, this is a big advantage of the city and with growth potential still untapped, the appreciation for quality projects by credible developers will witness good appreciation in the coming years.

8. What is challenge faced by big players with brand value like yours amidst local players?

We are extremely careful when it comes to buyer profile and look at long term appreciation and delivering quality township for living. We don't compromise and take shortcuts, this is something that residents of Mangaluru understand and value. Our customer profile respects these points and makes us confident of planning launch of more projects in the city in the coming months.

9. Is it correct to say the real estate scenario in Mangaluru is akin to 'survival of the fittest' when it comes to developers?

Absolutely right, we are witnessing this trend across India and weak players (with no great track record or contractors turned developers) will be out of the game when real estate regulatory bill is passed in the coming months.

Information about exhibition from December 9 to 13 in Dubai.

http://info.brigadegroup.com/dubai/2015/lp/mega-home-fest/?fid=57

More information on Brigade group and projects : http://www.brigadepinnacle.com/