Bengaluru: BDA likely to increase flat prices by 10-20%
The Bengaluru Development Authority plans to raise constructed and under-construction flat rates by 10 to 20 percent due to increased expenditures. This decision, pending clearance after the Lok Sabha elections, follows last year's state government guideline rate hike and rising construction material costs. With unsold units, the move could affect buyers, with flats possibly seeing increases from Rs. 25 lakhs to Rs. 50 lakhs.
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FollowThe Bengaluru Development Authority (BDA) has decided to hike the rates of constructed and under-construction flats across various neighborhoods by 10 to 20 percent, citing rising expenditures. Sources within the authority revealed that the decision was made following discussions in the governing body meeting and is awaiting clearance after the Lok Sabha election code of conduct.
Last year, the state government raised the guideline rates for real estate, alongside an increase in stamp duty rates. Additionally, the prices of construction materials have surged. With no recent sales of flats or houses in BDA-built neighborhoods, the authority, facing financial strain, is considering raising flat prices, impacting potential buyers.
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During a recent flat fair held in March for BDA apartments, the response fell short of expectations. Flats in Kommaghatta, Kaniminike, Konadaspur, and Nagarabavi remain unsold, totaling over 1,050 units. In areas 2.5 km from the Challaghatt Metro Station, out of 900 flats across Phases 2, 3, and 4, approximately 600-700 remain unsold. Similarly, over a thousand 2 BHK flats in Kommaghatta Phase 1 and 2, as well as Konadaspur Phase 2, have a surplus of 280-300 units. Nagarabavi has over 115 unsold 3 BHK flats, with 17-18 units remaining unsold.
Currently priced between Rs. 25 lakhs to Rs. 48 lakhs, the flats may see an increase to Rs. 45 lakhs to Rs. 50 lakhs in Konadaspur and from Rs. 38 lakhs to Rs. 43 lakhs in other areas if the rates are raised by 10 to 20 percent.
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Moreover, there's anticipation that villa prices in Hunnigere, where construction is completed and ready for sale, may also see a hike. 3 BHK houses are currently priced between Rs. 75 lakhs to Rs. 85 lakhs, and 4 BHK houses range from Rs. 1.10 crores to Rs. 1.13 crores. BDA officials have indicated the possibility of revising these prices.
The decision by BDA to increase flat rates is expected to have significant implications for potential homebuyers, especially considering the already challenging real estate market conditions in Bengaluru.
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