BENGALURU: The Bangalore Development Authority (BDA) is likely to increase the initially proposed rates of its new flats by 4% to 29% in two residential projects during its notification for allotment to be issued shortly. This is aimed at shoring up its financial position and bringing its properties closer to the market rates which have shot up after the revision of guidance value by the State Government since October 1 last year.
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The projects to be hiked encompass over 1,500 flats at Kommaghatta (in Kengeri) in West Bengaluru and Konadaspura (near Whitefield) in East Bengaluru. The notification will be issued after June 4 when the Model Code of Conduct for the Lok Sabha elections will be lifted.
A senior official told TNIE, “Our proposal needs to be approved by the authority’s board but it will give its consent. The primary objective of implementing this hike is to pay the bills of our contractors and not to make any profits for the BDA.”
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BDA flats at Kommaghatta will have a considerable hike. The extension of Metro’s Purple line to Kengeri (August 30, 2021) and later to Challaghatta (October 9, 2023) have resulted in a surge in demand for property in this part of the city.
The hikes proposed here: 3BHK in Phase I will be Rs 65.7 lakh (previously planned cost was Rs 53 lakh); 2BHK in Phase II will be Rs 54.3 lakh (up from Rs 42 lakh), and 2BHK in Phase III will be Rs 49.15 lakh (up from Rs 42 lakh). BDA presently possesses 480 3BHK flats, and 360 2BHK flats in Phase II and 336 2BHK flats in Phase III.
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Asked about the steep increase, the official said, “If you look at Kommaghatta, the rates were fixed in 2018 and six years have passed. Costs have soared during this period. Flats sold by private builders just near our project are much higher.”
In comparison, a minor hike of 4% has been proposed in Konadaspura where 300 of the 632 flats have been sold so far. “They are all 2BHK ones and are presently being sold at Rs 50 lakh a piece. We propose to effect sell them for Rs 52 lakh a piece. Once the notification is issued, the new rate would be applicable to the flats yet to be sold as well as the new flats in the `F’ Block which have not been opened for sale yet,” the official said.
Another official said, “BDA had applied for a loan of Rs 1,000 crore from the Union Bank of India but we have only taken Rs 300 crore so far and want to stop with this sum itself. We have borrowed to pay contractors who are working across our multiple projects. The hike to be effected in the flats is intended to repay the bank loan.”
There will be no increase in the rates planned at the Hunigere Villa project which will also be notified soon.
