Developments That Will Help Bengaluru Property Market To Bounce Back

Bengaluru, a real estate market that was witnessing a slow down lately, will soon bounce back owing to some new developments in the property market here. PropGuide lists developments that will breathe back life into the Bengaluru real estate market:

Old properties and price rationalisation

You must have witnessed that some of the resale properties on the market are priced so high that they are almost at par with the new ones. While some of you may feel that some locations do command that kind of importance, the Stamps and Registration Department did revise the existing way of calculating guidance values. Therefore, old properties could see a price rationalising.

Earlier, only the location determined the guidance value of a property irrespective of the age of the building, but now, new ready reckoner rates have been introduced. The new rates are based on the super built-up area and the location of an old property and it is applicable to all old properties aged 10 years and above, built on a plot of more than 1,500 sq mt. An estimate shows that over 95 per cent of resale properties are over 10 years old and therefore, this new set of rules is useful. For very old properties, depreciation can be factored in too.

Over 100 projects pulled up

As of August 24, 2017, only 12 projects were approved by the Real Estate Regulatory Authority (RERA) in Karnataka. Check out the list of approved projects here. However, RERA did see 977 applicants. About 130 projects were also pulled up for not registering before the deadline. Non-registration could eventually lead to 10 per cent of the project cost to be paid as penalty or three years of imprisonment. Meanwhile, the authority is sending out e-mails and letters to defaulting developers.

Metro boost

The Bangalore Metro Rail Corporation Limited (BMRCL) has now started initial construction activities for Metro stations coming up on Hosur Road, a project that has been long awaited by many. The demolition of properties has already started and 219 properties have already been acquired. The new line under Phase-II from RV Road Metro Station to Electronics City is under-construction. Acquisition of the land required for two intersection stations at RV Road, Silk Board and an elevated Metro line at Ragigudda is still being discussed.

Road widening at Sarjapura meets ire

While all of us may be wishing for better and congestion-free roads in Sarjapura, the Bruhat Bengaluru Mahanagara Palike (BBMP) is not being thanked for this. Reason? Those whose property would be taken up in lieu of compensation aren't too happy with the way the project is being handled. The BBMP is undertaking this project at the cost of Rs 84 crore and the project aims to double the width of the road between Iblur Junction and Carmelaram Junction. The road currently is 80 feet wide. 242 properties have been identified to facilitate land acquisition.

Encroachments of storm-water drainage under scrutiny

Over 100 violations of storm water drains have been identified and being investigated after the Bangalore Metropolitan Task Force (BMTF) issues five suo-moto FIRs against home owners in Mahadevapura. Areas under scrutiny include HAL Road, Marathahalli, Bellandur, Shantinagar, Koramangala and a few locations in north Bengaluru. Urban local bodies too have been asked to wake up to such encroachments and address them.

Also read: After RERA, 1,000 Under-Construction Projects In Bengaluru May Find Takers