BDA to increase flat prices by up to 20% amid inflation

Bengaluru, NT Bureau: The Bangalore Development Authority (BDA) has announced plans to increase the rates of both constructed and under-construction flats across various neighbourhoods by 10 to 20 per cent.

This decision, driven by rising expenditures, was made during a recent governing body meeting and awaits clearance following the Lok Sabha election code of conduct. Last year, the state government raised the guideline rates for real estate and increased stamp duty rates.

Additionally, construction material costs have surged. With no recent sales of flats or houses in BDA-built neighbourhoods, the authority, facing financial strain, is considering raising flat prices, impacting potential buyers.

A recent flat fair held in March for BDA apartments received a lukewarm response. Flats in Kommaghatta, Kaniminike, Konadaspur, and Nagarabavi remain unsold, totalling 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 Phases 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 and Rs. 48 lakhs, the flats may see an increase from 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 per cent.

Additionally, there is anticipation that villa prices in Hunnigere, where construction is complete and ready for sale, may also see a hike. Currently, 3 BHK houses are priced between Rs. 75 lakhs and 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 as well. The BDA’s decision to increase flat rates is expected to have significant implications for potential homebuyers, especially considering the challenging real estate market conditions in Bengaluru.