Demand for BDA housing drops as allottees rent homes

Bangalore Development Authority (BDA) is struggling to sell its flats and villas. However, those who purchased them are now renting their homes at fairly high rates.

The BDA has learnt that those who purchased their villas in Alur have rented them out at Rs 15,000 a month for a two-bedroom-hall-kitchen (BHK), and around Rs 20,000 per month for a three BHK.

BDA officials have decided to verify the allottees and tenants. The authority will list all those who have rented their spaces, irrespective of whether it is a flat or a villa.

“Though resale is not allowed, there is no condition on rentals. When BDA is struggling to sell its flats and villas, if someone is renting the allotted space, nothing can be done. We will note down the details of the villa allottees and ensure that they do not apply for a site, villa or a flat again. According to BDA rules, to buy BDA property, the applicant should not be owning other BDA properties,” said a senior official.

As the villas are located in north Bengaluru, along the Tumakuru Road, 22 km from Majestic, those who purchased the villas continue to stay in rented accommodations in the city centre.

They have rented or leased their properties to families, private companies and industries, as company accommodations and home stays.

In the last five months, the sale of flats through BDA’s across-the-table-counter has not improved. BDA is managing to sell just one or two flats a day. Since March, they have been receiving only inquiries. BDA is yet to sell 2,000 flats.

BDA had created 452 row houses of one, two and three BHK, of which 30 are still available for sale. The cost of a three BHK is Rs 50 lakh, two BHK duplex Rs 42 lakh and one BHK simplex Rs 30 lakh.