Bengaluru: The Bengaluru Development Authority (BDA) has given up the plan of constructing new apartments, nearly seven years after the government agency launched its first apartment block in the City. Reason: over 2,000 flats, costing Rs 1,000 crore, remain unsold.
“We have decided not to construct new apartments until most of the unsold flats find buyers. There are at least 2,000 unsold flats,” a senior BDA official said. Each flat roughly costs Rs 50 lakh.
While there is no end to the love of owning a house, the BDA, it appears, has failed to attract buyers. The reasons are plenty. Although the BDA flats are much cheaper than the ones built by private developers, doubts are cast on the quality of construction. The BDA has also a poor track record of providing basic amenities including road accessibility, power connection and street lights in and around places where the flats are coming up.
Over 2,000 unsold inventories
In all, the BDA has built nearly 20 apartments in places like Alur on Tumkur road, Kothnur in Anjanapura, JP Nagara 9th Phase, Kengeri, Gunjur on Varthur road etc, most of which are far from the Central parts of Bengaluru. While most of them are sold, the BDA is yet to find buyers for its flats in Kanminike, Kommaghatta, Malagala, and Alur (Phase 2) etc.
As flats remained unsold for over 3 years, the BDA had launched several schemes to attract new buyers. The government agency introduced “Across the Table” scheme, where the interested buyers could book the flat in seconds. It also started talking to police departments and a few banks for selling the flats in bulk for relatively lesser price. Some schemes did work.
The BDA, which was mainly into developing layouts, started the first apartment project at Nandini layout in 2012-13. The agency charged just Rs 8 lakh for a 450 sq.ft apartment back then. It has constructed nearly 20 apartments over the last seven years, which has benefited a large number of people mainly from the economically backward section.