BDA struggling to sell its flats; rules the obstacle

Nischith N | NT

Bengaluru: With revenue sources drying up amid the pandemic, the Bengaluru Development Authority (BDA) is looking at various options to make up for the shortfall. It had recently auctioned thousands of corner sites in various residential layouts.

The BDA is also sitting on thousands of unsold apartments. According to the reports, out of 1,376 flats constructed by BDA in Bengaluru city, only 233 flats were sold in the year 2021 and 1,150 flats await buyers.

Experts suggest that BDA has to tweak its rules to attract buyers. “The corporation has to come up with new norms to attract buyers because the pandemic has pushed people indoors and apartment dwellers are feeling the pinch. Like every private builder in Bengaluru, BDA has also been severely impacted by the pandemic,” said a senior BDA official. BDA will have to formulate plans to increase the sales of the apartments, the official added.

In recent days, BDA had changed rules regarding ownership. Earlier, only one member from each family was permitted to buy a flat from the BDA, but later it allowed more than one member per family to buy flats. In case an organisation is interested in buying flats in bulk, BDA will offer a discount of 10 per cent.

The BDA flats price starts at Rs 11-45 lakh depending on the locality and total carpet area. According to the reports, at the moment, 498 flats are available for sale in Kanminike (phase 2). The 2 BHKs in this area are sold for Rs 23.75 lakh. Another 261 flats are available in Kanminike (phase 3) which cost around 28.50 lakh and 88 3BHK flats are available for sale at Kanminike (phase 4) at the cost of Rs 40 lakh each.

Another 71 flats are available at Kommaghatta (phase 1) with each 2 BHK flat costing Rs 23.75 lakh. In phase two, 213 2 BHK flats, costing Rs 30.4 lakh, are available. In Doddabanahalli (phase 1), 12 2 BHK apartments are available at Rs 25 lakh each. Another 10 2-BHK flats costing Rs 44 lakh each are available in Valagerahalli (phase 6).

“There is still a market for 1-BHK flats. But the plan used by the Authority is not up to the mark and also it is said that they are planning to construct new flats. I feel the cash-strapped authority will be unable to go ahead with that project. Also, it is claimed that they have simplified the process of buying flats. People can now book BDA flats just like booking bus tickets online. But they face trouble while submitting the online application. So it’s better that BDA finish the existing flats and then go-head with the new project,” says Kiran K.L., a builder.