Poor response to flats forces BDA to drop new projects for now

 The Bangalore Development Authority (BDA) has decided not to undertake construction and sale of any new flats until their ongoing projects are nearly completed.

This decision has been taken in the wake of lukewarm response the BDA has received over the last few months when it invited applications for the sale of flats. The agency has also decided to tread cautiously after getting applications from allottees returning their sites in the yet to be formed Nadaprabhu Kempegowda Layout.

A senior BDA official said that the BDA has decided not to start any new projects until the works on hand are at least 70% completed. “We have started works in Kommaghatta, Kanminike, Vollagerahalli and Nagarbhavi. In all, six housing projects are under way. Apart from these, we are also providing amenities and sites in Kempegowda Layout. With all these, we already have our hands full,” said a BDA official.

This means that for at least another four to five months, the BDA will not call for any applications, notifying its property or even start any new construction work. However, this decision will be given the official seal at the BDA board meeting. The board meeting, which was scheduled to be held on May 23, has been postponed to June, the official said.

In January, the BDA had called for applications for allotting 3,500 flats, but only 800 applications were sold. The officials point that the response has been poor after demonetisation. They also cited a lull in the real estate market as a reason for the poor response.

The state government in the 2017-18 budget entrusted the BDA with the task of constructing 3,000 flats of various dimensions across the city, including low budget homes for the economically weaker sections.