Government clearances delay apartment projects

Government clearances delay apartment projects

Developers forming sites on land available with them in North Bengaluru

Government clearances delay apartment projects

With many apartments in the city lying vacant, plotted development on the outskirts is gaining momentum, especially in northern Bengaluru.

Buyers are showing interest because they can build homes to suit their needs, which is not the case with apartments. Builders are also showing interest in plotted development because they just have to provide civic amenities and the rest is left to the buyer.

Another major reason is that many applications for constructing commercial and residential buildings are awaiting clearances from various civic agencies like Bangalore Development Authority, Bruhat Bengaluru Mahanagara Palike or Bangalore Metropolitan Region Development Authority (BMRDA).

Since land parcels are already available with the builders, they are going ahead with plot development to avoid red tape.

Members of realty firms say that 12 to 15 plotted development properties are coming up on the outskirts.

According to Confederation of Real Estate Developers’ Associations of India - Bengaluru (CREDAI) and Bangalore Realtors’ Association - India (BRAI), at least 100 applications for constructing residential and commercial projects have been awaiting clearances for more than six months.

For buildings of more than four floors, approval has to be obtained from at least 20 agencies including the fire and emergency services, pollution control board among others.
N A Afzal, a realtor and BRAI member, said that there are many big and small builders who have huge chunks of land and are going for plotted development. According to him, plotted development in the city has picked up in the last three to four months.

Another reason for builders to embrace plotted development is that it is less expensive compared to construction of an apartment complex. There are also cases where some builders are buying land from small land holders and creating big projects.

BRAI secretary Ayub Khan said that though constructing villas and group houses is not new, it has become popular now.

Many such projects are coming up in Devanahalli, Hoskote, Kanakapura Road, Hennur Road, Ballari Road and Doddaballapur.

Apart from infrastructure and connectivity, land prices are also reasonable, ranging from Rs 1,400-Rs 3,000 a square foot depending upon the locality.

Explaining why plotted development projects are coming on the city outskirts, Suresh Hari, honorary secretary Credai - Bengaluru, said: “Up to 40% of the area in a layout or a plotted development has to be set aside for civic amenities. It demands huge tracts of land. Thus, such projects are on the city outskirts.’’

Another reason, they say, is that the onus of property verification and construction is on the buyer, thus making them a better business proposition.

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