Bengaluru’s real estate market is grappling with the cascading effects of the city’s persistent infrastructure challenges. Recent issues including severe rainfall, traffic congestion, and water shortages are significantly influencing property prices and buyer decisions.
In September 2022, Bengaluru experienced one of its most severe flooding episodes in recent history, with over 130 mm of rain inundating various parts of the city. This deluge resulted in substantial economic losses estimated at over ₹225 crore and highlighted vulnerabilities in the city’s infrastructure. The flooding not only submerged low-lying areas but also had a broader impact, affecting residential and commercial properties alike. As the city continues to contend with these issues, potential homebuyers like Manaal Desai, a 29-year-old entrepreneur, are increasingly cautious about their property investments. Desai is currently weighing the pros and cons of purchasing a 3 BHK apartment on either the ground or first floor. His primary concern is ensuring minimal knee strain for his elderly parents while also mitigating the risk of water logging—a significant issue given the memories of the 2022 floods. Despite assurances from sales representatives, Desai remains wary of potential future flood risks.
Local real estate brokers and industry experts have noted a surge in enquiries related to water management and infrastructure resilience in new residential projects. Prospective buyers are now more focused on these factors than ever before, reflecting a broader trend where infrastructure reliability plays a crucial role in property purchasing decisions. Bengaluru’s ongoing issues with heavy rainfall and inadequate water management systems have thus become critical considerations for property investors and developers. The impact on property values is a clear indication of how infrastructure challenges can directly influence the real estate market, shaping buyer preferences and market dynamics in significant ways.
