BENGALURU: Home buyers in Bengaluru are in a dilemma. Prospective customers are reconsidering whether to invest in property in the city after an order passed by the National Green Tribunal (NGT) and an ongoing demolition drive by the state government, a not-so-desirable situation for developers already facing a slowdown in sales.
“Sales have been flat as buyers continue to hold on to their decisions. We expected the market to recover but recent developments have further pulled down the recovery by at least 10 per cent,” said Nesara BS, executive director at Concorde Group, a real estate developer.
In a ruling on May 4, the NGT barred construction activity within 75 metres of the periphery of water bodies and also set limits for buildings near feeder canals. Karnataka’s Environment Impact Assessment Authority has put on hold environmental clearance for 10 mega construction projects, including large residential projects, for alleged encroachment of lakes and drains.
Weak economic conditions and concerns over likely fall in prices are cited as reasons for buyers deferring their plans. Property transactions in the city have fallen by as much as 30 per cent in the past four quarters due to slow job creation and low salary increases at software firms.
According to LJ Hooker, total inventory in the first half of 2016 in Bengaluru stood at 125,738 units.
Developers said it is important that the government should own up to its approvals given after intense scrutiny over two to three years and collecting hefty fees running into crores of rupees.
“It is highly disturbing, demotivating and demoralising that one day they declare that what they have sanctioned is illegal that too when the constructions are in full swing,” said JC Sharma, president of the Bengaluru chapter of Confederation of Real Estate Developers’ Associations of India.
Credits ET Realty