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Naveen Menezes, Bengaluru: The Karnataka Housing Board (KHB) has set a minimum price of Rs 88 lakh for a 2-BHK flat in its upcoming apartment complex at Surya Nagar 1st Phase on Chandapura-Anekal Main Road in southern Bengaluru.
This price is nearly three times higher than what the board charged for a similar project four years ago, raising concerns about affordability.
Critics argue that the KHB’s focus on high-end housing contradicts its founding mission of providing affordable homes. However, officials defend the pricing, describing it as a luxury project that is still competitively priced compared to private developments.
Earlier this week, the KHB announced plans to construct 90 flats in the new project.
A 2-BHK flat, with a super built-up area of 1,340 sqft, is priced at Rs 88 lakh, while a 3-BHK flat (2,200 sqft) is pegged at nearly Rs 1.6 crore. The project is situated about 5 km from the Bommasandra metro station.
Officials cited high land values in the area, estimated at Rs 10,000 per sqft, as a key factor driving up costs.
“We are offering amenities on par with reputed private developers. For similar projects, private builders are quoting Rs 1.5 crore for a 2-BHK flat. Unlike market practices, there are no hidden charges here,” said an engineer overseeing the project.
The KHB has previously built two apartment complexes in Surya Nagar.
In 2007, it constructed 1,537 flats, followed by a project in 2021 that included 384 flats. Four years ago, the prices were significantly lower, with a 2-BHK priced at Rs 30 lakh and a 3-BHK at Rs 47 lakh.
Officials noted that rates could not be increased for the 2021 project due to prior advertisements.
Mixed reactions
Local residents have expressed mixed reactions.
Pruthvin Reddy, a Chandapura resident, acknowledged the rise in property prices after the Covid-19 pandemic, but questioned the KHB’s intent.
“While it’s true that private builders charge Rs1.5 crore for a 2-BHK, the KHB was established to provide affordable housing. The land for this project was acquired in 2008, and the premium pricing seems unjustifiable unless the land was purchased under the new land acquisition act,” he said.
Defending the pricing, JD(S) leader and former KHB chairman GT Deve Gowda said, “The land rates in the area are high, and there is a growing demand for luxury homes at an affordable price.”