Has The NGT Buffer Zone Order Made Properties In Bengaluru Dearer?

Who can overlook the momentous growth property markets in India's information technology capital Bengaluru have scaled in the past? According to a PropTiger DataLabs report for the month of July, Bengaluru accounted for 42 per cent of total new launches in the southern region, with localities such as Hebbal registered a 13 per cent annual increase in property prices. This growth gains more significance in light of the fact that the slowdown dragging the real estate sector of the country has yet to be fully overcome. However, the National Green Tribunal order that was passed in May is keeping developers active in the city under huge stress. According to the NGT order, a 75-metre periphery along lakes must be maintained as green belt and buffer zone. This limit can be kept at 50 metres in case of primary Rajkulewas (storm-water drains) , 35 metres in case of secondary Rajkulewas and 25 metres in case of tertiary Rajkulewas. The order reads: "This buffer zone would be treated as a no-construction zone for all intent and purposes. This is absolutely essential for the purposes of sustainable development, particularly keeping in mind the ecology and environment of the areas in question. All the offending constructions, including boundary wall shall be demolished which falls within such areas." According to the K B Koliwad panel report, which was set up to examine the state of wetland and encroachments, there are 835 lakes in urban Bengaluru, with an area extension of 27,604 acres. Of this, government and private parties have encroached upon 4,277 acres of land. In rural Bengaluru on the other hand, there are 710 lakes, with an area extension of 29,972 acres, of which 6,195 acres are encroached upon. This means encroachments, no matter on what stage of construction they are, will have to come crumbling. As a result, several developers in the city will have to review, redesign and re-evaluate their projects. In effect the cost of building will shoot and property prices in Bengaluru will go sky high. Developers are bound to pass on the monetary hit to home buyers. It has to be noted that property in the IT city is already quite expensive and any further increase may force Bengaluru to face the same fate as Gurgaon. The emergence of luxury commercial and residential space in the Millennium City led to a price boom, which finally resulted in the city being one of the worst-hit parties when a crisis hit the sector. While the merits of the NGT order cannot be questioned, planning and development bodies should consider making policy changes to ensure a situation such as this does not arise.