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Bangalore Development Authority would increase prices for the next allocation of flats

In two residential developments, the Bangalore Development Authority (BDA) is expected to raise the originally suggested prices of its new apartments by 4% to 29% when it issues its notice for assignment, which is expected to happen soon. This is intended to strengthen its financial situation and get its properties closer to market rates, which have skyrocketed since the State Government revised the guiding value on October 1st of last year.

 

Over 1,500 units in Konadaspura, which is close to Whitefield in East Bengaluru, and Kommaghatta, in Kengeri, West Bengaluru, are included in the projects that would be boosted. After the Model Code of Conduct for the Lok Sabha elections is removed on June 4, the notice will be sent out.

“Our proposal needs to be approved by the authority’s board but it will give its consent,” a top official told TNIE. The principal aim of enacting this increase is to settle the invoices of our contractors, rather than generating revenue for the BDA.

The Kommaghatta BDA apartments will see a significant increase. Property in this area of the city is in high demand as a consequence of Metro’s Purple line expansion to Kengeri (August 30, 2021) and then to Challaghatta (October 9, 2023) next year.

The proposed increases are as follows: 2BHK in Phase II would now cost Rs 54.3 lakh (up from Rs 42 lakh); 3BHK in Phase I will now cost Rs 65.7 lakh (up from Rs 53 lakh); and 2BHK in Phase III will now cost Rs 49.15 lakh (up from Rs 42 lakh). At the moment, BDA has 480 3BHK apartments, 360 2BHK apartments in Phase II, and 336 2BHK apartments in Phase III.

“If you look at Kommaghatta, the rates were fixed in 2018 and six years have passed,” the official said when asked about the sharp hike. Prices have skyrocketed in this time. Private builders’ apartments close to our project are much more expensive.

In contrast, 300 of the 632 units in Konadaspura have already been sold; a small 4% increase has been suggested there. “They are all 2BHK units, and the asking price is Rs 50 lakh each unit right now. In essence, we want to sell them for Rs 52 lakh each. The newly constructed apartments in the ‘F’ Block that have not yet been put up for sale as well as the unfinished apartments will be subject to the revised tariff when notice is given, the official said.

An additional official said, “BDA had applied to the Union Bank of India for a loan of Rs 1,000 crore, but we have only taken Rs 300 crore so far and want to stop with this sum alone.” In order to pay the contractors working on our various projects, we have taken out loans. The purpose of the apartment building’s raise is to pay back the bank debt.

Rate increases are not anticipated for the Hunigere Villa project, which will also be announced shortly.

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