The Brigade Home Fest has just been inaugurated at the Sheraton Grand, Bangalore, on March 11. There is much bustle around the room as people network or seek more details on various projects. RoofandFloor is meeting with Mr. M R Jaishankar, Chairman and Managing Director of Brigade Group – this is our second meeting. Our first was when Mr. Jaishankar was a panellist at RoofandFloor’s Realty Connect on March 3. As then, Mr. Jaishankar is gracious and keenly listens to our questions and answers them candidly.
As a marketplace, we interact with first time home buyers who are confused about budget and neighbourhood choices. In your opinion, what should be the priorities of first time home buyers?
I am assuming that we are talking about salaried professionals here. The priority must be on financial planning. They should earmark towards monthly payments without getting into debt. This is important. Location is important as well. They need to choose the location based on their requirements. Are they looking to invest in a property or do they want to buy a home for themselves? What’s the distance from schools, offices and residences of other family members?
Another dilemma for our buyers is whether they should opt for properties that is available for immediate occupancy or should they pick an under construction property?
In my view, this depends on each individual’s financial planning. Also, it depends on their requirements. If they are in a rented place and want to move into their own home, they can choose a ready home. Or if time is not a constraint, they can look at under construction projects. Price and an overall budget of a project are also very important to consider.
The deal about hindsight is it helps us see the turning points. In your opinion, what do you think triggered this slump?
Well…I will not call this as a slump. I think what has happened is more a case of excess supply over demand. At the time, the economy was performing well and the expectation was that the economy will improve further. That did not happen. Global economic reasons also affected Indian economy – not just the real estate but other markets as well did not grow at the expected pace.
Have we noticed an increase in enquiries about budget homes? Do you think budget homes can perhaps lead the market recovery?
Well, budget homes are indeed a major component of a pyramid that is residential properties. I agree that premium homes have taken a hit. But in my view, what has happened is that investors and buyers looking for their second, third or fourth homes are postponing their purchases. So demand is there – but not as much as was expected.
Where do you see the industry heading into next 6-8 months?
Every few months, we say the industry is going to recover. But this time, the industry is more confident about the recovery. The Budget has been well-received generally. It has met the expectations of the majority of people. In the long-term, the overall size of business will definitely continue to grow. With a regulator in place, the industry can be said to have matured. This might weed out smaller promoters, perhaps about one-third of today’s promoters will be expected to fall by the wayside.
Yes, the Real Estate Bill has been passed. What do you think of it?
It’s a mixed feeling. If the regulator is going to be just another authority that must be approached for approvals, then I can say that the industry probably did not require it. But as such, we must accept it and make the best use of it. I can say that the Escrow mechanism, as well as REITs, are positives.
Of course, we have either worked with or observed many women in the real estate industry. Real estate is generally considered a tough field to navigate. What is your opinion?
Yes. More women are entering the business. Brigade is also working to hire more women employees. From our experience, we have seen that women employees perform better. Also, we have noticed an increase in the interest level of women employees, even in direct construction coordination. In fact, one of the buildings in Brigade Orchards will have an all-women management team at its construction site.
Wow! That is great news as well as a challenge.
Yes. But we know they are capable.
Mr. Jaishankar was speaking with RoofandFloor’s Anita Kurup.