Bangalore: The Bangalore Development Authority (BDA) is contemplating a significant price hike for villas in its Hunnigere development, located off the Nelamangala-Sondekoppe Road. The potential adjustment reflects a broader trend of rising construction costs impacting the real estate sector.
Currently, the BDA’s pricing structure for these properties is set at INR 75 lakh for a three-bedroom, hall, and kitchen (3 BHK) villa and INR 1.10 crore for a four-bedroom (4 BHK) villa. However, in response to escalating material and construction expenses, the BDA is considering increasing the prices to a range of INR 85 lakh to INR 90 lakh for 3 BHK villas and INR 1.15 crore to INR 1.20 crore for 4 BHK villas.
The decision to revise the prices is scheduled for discussion at an upcoming board meeting. This meeting will finalise the new rates, with construction of the villas having been completed in June. However, the allotment process has been delayed due to issues with electricity connections, which are affecting the overall project launch. In addition to these villas, the BDA has also developed 320 one-bedroom hall and kitchen (1 BHK) flats aimed at economically weaker sections. The initial price for these flats was INR 13.50 lakh but is now set to increase to INR 15 lakh. These flats will be sold via auction, with prices reflecting the adjustments in construction costs.
The proposed price increases have sparked frustration among local residents and prospective buyers. Aniketh Kashyap, a software engineer, voiced concerns over the timing of the hikes, particularly amidst rising living costs and inflation. “The sudden increase in property prices exacerbates our financial strain,” he remarked, noting that the sluggish property market might further dampen demand for BDA flats.
Real estate experts caution that the proposed price adjustments might not align with current market conditions. With a surge of new projects and a slowdown in demand, higher prices could deter potential buyers. Additionally, the rental market’s stress suggests that many individuals are re-evaluating their housing options due to financial pressures. The broader economic environment further complicates the situation. Inflation has impacted various sectors, heightening concerns that increased property costs will render homeownership unattainable for many families, particularly in Bengaluru, where professionals already face financial challenges.
As the BDA moves forward with its pricing review, the community remains attentive. The forthcoming board meeting is anticipated to clarify the new pricing structure and outline the next steps for the allotment process. In the meantime, prospective buyers are encouraged to explore alternative options within the market, considering both budget constraints and the evolving real estate landscape.
