Allottees in lurch as BDA doubles the flat rates
The Q1 2014 is expected to be in the news for quite sometime, thanks to the Bangalore Development Authority. After offering sites that are no longer litigation free and not equipped with clear titles that led to an increase in the price of BDA plots by 200-600%, it is now the turn of the apartments. As per recent market news, the civic body at a short notice, has jacked up the flat rates by 100-200%.
The decision of the civic body to double (almost) the flat prices, which were mainly constructed for the economically weaker sections has pinned down the hopes of common man to own a flat in the city. The hike was attributed by the BDA to the sudden stepping up of the construction costs, expansion of the flat size and cost of project supervision.
Market insight
According to the current market news, BDA intends to sell off all its 2BHK flats in Bangalore for not less than Rs 25 lakh. To make matters worse, it has sent legal notice to allottees who have won flats in lottery, to ante up an additional sum of Rs 10 lakh-Rs 15 lakh, as per the house type. Such apartments are located in Alur, Thippasandra, Kothanur, gunjur, Nandini layout, Malagala, Halagevaderahalli, Doddabanahalli and Valagerahalli.
As per the revised price structure, the changes are as follows:
| FLATS | OLD PRICE | REVISED PRICE | PRICE FOR FUTURE PROJECTS |
| 1BHK | Rs 5 Lakh | Rs 7.5 lakh | Rs 10 Lakh |
| 2BHK | Rs 7.5 lakh | Rs 17.6 lakh | Rs 25 lakh |
| 3BHK | Rs 13.5 lakh | Rs 25 lakh | Rs 35 lakh |
Impact of the hike
Property consultants quote that by hiking the apartment prices in Bangalore, BDA has annulled its own purpose of offering affordable residential units. Given the increase in sand, cement and steel prices, a marginal hike is accepted, but a giant leap by 100-200% cannot be justified.
The rise in flat rates has left the home buyers in a state of wary, since they will have to scourge for funds and apply for loans to deal with the hike in price. Furthermore, many of the applicants will not fall in the band which makes them liable to apply loans from banks. This recent arbitrary decision of the BDA is eyed as a ‘real estate agency’ move instead of a civic body and thus, has generated a wave of discontent among the buyers.
