BDA Flats: Why are the buyers Disinterested?

In a country like India where the realty market is afflicted with delayed projects, broken promises, frauds and scams, a deal with the Bangalore Development Authority (BDA) was considered a safe bet by the buyers. But the trends coming of late exhibit a different situation; buyers have started showing reluctance to invest in BDA projects. Experts are of mixed opinion as to why people are not interested in these projects. The continuous delay in the delivery, not-so-affordable prices and the recent case of land fraud may be some of the reasons.

Let us take a detailed look at some of the factors that have led to people's disinterest in BDA projects:

Credit: bdabangalore.org

Continuous Delays: Dream Home Postponed

It was long back in 2003 that BDA had distributed plots to people. Since then, the authority has not been able to deliver a single project due to which it has become an object of terrible mistrust. During this period, about 100 new engineers have been employed by the agency; still it could not prepare a single layout. Moreover, the delay in the projects led to a price-escalation making the flats and plots far from affordable. Red-tapism, lack of planning and unclear target timelines are some other consequential troubles.

Credibility Crisis: BDA Land Scam

The real estate market in India is plagued with frauds and scams and now BDA joins the bandwagon. In a recent case of land fraud, the wife of a retired deputy superintendent of police, C Munirathnam Naidu, was scammed out by the authority. In October 2004, BDA arranged for an open auction and invited bids for a plot measuring 4,000 sq. ft. in HSR Layout Sector 3 of Bangalore. Mr. Naidu's wife B Banumathi purchased the plot after making a bid of Rs. 1.16 cr. But BDA kept delaying the registration of the property in Banumathi's name claiming that it was still under litigation. Now, after 10 years, the couple found that BDA had resold the land for Rs. 6.48 cr. in a quiet auction and had also registered it in the name of the second bidder.

The case has been brought to Karnataka High Court and a notice has been issued to BDA and the second buyer. In a clever move to shirk off the situation, BDA also tried to offer another unworthy site to the DySP but he refused. In the course of time, BDA will have to compensate the plaintiff as per court's directions but the blemish will always be there.

Credit: Wikipedia.org

Price Rise: Fading Essence of Affordable Homes

After the recent hike in the prices of BDA sites, the prices of BDA flats have increased by 100%-200%, breaking the dream bubble of the middle class buyers. Moreover, the buyers who won the flats in a recent lottery have also received notices to pay extra amounts. The price for 2 BHK flats was originally Rs 7.5 lac but now the buyers have been asked to pay Rs 10 lacs more. BDA tried to defend itself by blaming the increase in construction costs and the prices of land. But it should be noted that such costs have increased only to a marginal extent but the drastic price escalation by BDA is unfair and discouraging the buyers from making further investments.

The above reasons have defamed BDA and have tarnished its trusted image and for buyers, owning a government plot or flat has now become a mere dream.

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