BDA site owners not allowed to build houses even after two decades

BENGALURU: The massive hurdles faced by the Bangalore Development Authority (BDA) site allottees to construct house on plots allotted to them two decades ago in Banashankari VI stage came to the fore during a public grievances meet on Wednesday. The owners said the Forest Department was not permitting them to go ahead with the construction as the Turahalli forest is in its vicinity.

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A  of 2006 sites, allotted in 2003-04, have run into trouble with the Forest Department. Giving details, a senior BDA official said the sites were handed over two decades ago. “In 2009, the Forest Department said that a good chuck of the land fell within its limits and it has taken its possession. They fenced the land with a wall too. So, 849 sites were lost in this,” the official said. This includes sites in 3rd, 5th, 4B block and 4 H blocks.

Meanwhile, a few among the remaining allottees had attempted to build houses on their land. However, two years ago, the Forest Department said that many sites fell within 100 metres of its border, which the department calls a buffer zone, and stopped the construction. “A total of 1,157 sites including two civic amenity sites are impacted. The allottees are not being allowed to build houses by the Forest Department whenever they attempt to do so,” he added.

Asked about it, BDA Commissioner Kumar G Naik said the BDA has sent a proposal to the government to ensure the Forest Department fixes the buffer at 30 metres.

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Understanding which type of real estate is a better investment: Commercial vs. Residential Property in India

The  Indian Real Estate  sector has always been an attractive avenue for investors seeking long-term wealth appreciation and stable returns. With the country’s rapid urbanization, burgeoning population, and increasing disposable incomes, the demand for both commercial and residential properties has witnessed significant growth.

However, the question that lingers in the minds of many prospective investors is whether commercial or residential properties present a better investment option in the current scenario. To ascertain the best choice, let’s explore the dynamics of both segments.

Residential Real Estate: Stability and Growth

Investing in residential real estate has been the traditional route for many Indian investors. Residential properties provide a sense of security and serve as a primary need, making them less susceptible to market fluctuations. Additionally, the Government’s various initiatives, such as affordable housing schemes and tax benefits, have further fueled demand in this segment.

One of the key advantages of investing in residential properties is the potential for capital appreciation over time. As cities continue to expand, the demand for housing will persist, leading to price escalation, especially in prime locations. Moreover, rental income from residential properties can supplement the investor’s cash flow, providing a steady stream of income.

However, the residential real estate sector is not without challenges. The market can experience periods of stagnation, and regulatory changes can impact the industry. Also, it may take a longer time to find tenants in certain localities or during economic downturns, affecting rental income.

Commercial Real Estate: Higher Returns and Diversification

In recent years, the commercial real estate segment has gained traction among investors seeking higher returns and diversification. Commercial properties, including office spaces, retail spaces, and warehouses, offer several advantages in the current scenario.

Firstly, the potential for rental yields in commercial properties is usually higher than residential properties. Businesses, especially in the retail and office sectors, are willing to pay a premium for well-located spaces that offer visibility and accessibility. With the rise of startups and multinational corporations setting up operations in India, the demand for quality commercial spaces is on the rise.

Secondly, investing in commercial real estate provides diversification, reducing the overall risk in an investor’s portfolio. Unlike residential properties, which are often influenced by macroeconomic factors and individual preferences, commercial real estate is more closely tied to the performance of businesses and industries, making it less susceptible to individual financial woes.

However, commercial real estate also comes with its challenges. The initial investment required for commercial properties is typically higher than that for residential properties. Additionally, finding the right tenant and managing the property can be more demanding, requiring specialized knowledge and professional support.

Current Scenario: Striking the Right Balance

In the current Indian real estate scenario, both residential and commercial properties offer viable investment options, each with its unique pros and cons. As the market continues to evolve, a well-balanced investment approach may prove to be the most prudent strategy.

Investors  must consider their risk tolerance, investment horizon, and financial goals when choosing between commercial and residential properties. For those seeking stable and long-term wealth creation, residential properties can serve as a solid foundation. Conversely, investors looking for higher rental yields and potential for faster growth may find commercial properties more appealing.

The Indian real estate sector presents a promising landscape for both commercial and residential investments. While residential properties offer stability and long-term appreciation potential, commercial properties offer higher returns and diversification benefits. Ultimately, the decision to invest in either segment depends on the investor’s individual preferences and financial objectives.

As the Market dynamics continue to evolve, investors must stay informed about the latest trends and regulations in the real estate sector. A well-researched and balanced approach, backed by expert advice, will help investors navigate through the complexities of the Indian real estate market and make prudent investment decisions that align with their financial goals.

Officers participating in the unauthorised road building on Hosakerehalli lake Bengaluru are to be suspended, under DKS's directive to the BBMP.

Real Estate Bengaluru

D K Shivakumar, the minister for development in Bengaluru and the deputy chief minister of Karnataka, has given BBMP Chief Commissioner Tushar Girinath instructions to suspend the officers and engineers responsible for the erroneous construction of a road on Hoskerehalli lake.

Residents had voiced opposition to the project in March of this year, claiming that the road's construction would make it easier to link to an apartment complex near the lake. It was merely a temporary mud road constructed to desilt the lake, according to the Bruhat Bengaluru Mahanagara Palike (BBMP), who had stated such at the time.

The operation was authorised to assist a powerful apartment complex owner, according to a minister's office press statement.

HOUSELIV REALTY

Homebuyer appeals to Lokayukta to take action against Housing Department for failing to respond to RERA complaints

A homebuyers has requested that the Lokayukta take action against the Housing Department for failing to respond to RERA complaints.

Shailesh Charati stated in his complaint that despite being notified by the authorities, the secretary, deputy secretary, and undersecretary of the Housing Department, in addition to the RERA member secretary, had not taken the necessary action to prevent illegal construction and sale of apartment units.

Charati explained that he had notified the RERA of an illegal apartment development in JP Nagar in April 2021. On the RERA website, he had stated that the promoter had misrepresented the building as a separate project but had withheld information about the litigation. He approached the department secretary to initiate action under Section 26 of the RERA Act after his complaint was disregarded by RERA.

In his objection to the Lokayukta, that's what charati expressed, notwithstanding five updates and over seven months after his grievance, the Lodging Division had neglected to make a move. " "This lack of action is assisting the chairman and K-RERA members in continuing their work without regard for the law and denying homebuyers justice," he added.

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Rental hike hits Bengaluru home seekers houseliv Realty

 If you are looking to rent a property in Bengaluru this year, brace yourself for an unprecedented rental surge. After making a consistent recovery from the pandemic slump since March 2022, rents in the city are leaping forward. 

“I have seen a property at HRBR Layout in Kalyan Nagar, worth Rs 20,000 in rent being rented out at Rs 40,000,” said a RERA-licensed broker, who did not wish to be identified, adding that this is not an isolated case. “Landlords are greedy. It doesn’t mean properties are improving but demand is high and landlords are hiking rents,” he pointed out. 

A tenant from Whitefield who also wished to stay anonymous, agreed. When his two-year tenancy contract expired this year, he was faced with a 57% jump in his rent from Rs 14,000 to Rs 22,000, for his 1BHK home. Unable to afford it, he was compelled to seek refuge elsewhere in the area. 

“People who already paid a higher rent last year will not see this kind of 30-40% jump this year. People who are coming now, moving into a property which was either not occupied or occupied at lower rent will see a jump.

The Covid-19 pandemic exacerbated a demand-supply mismatch of housing units in India’s Silicon Valley, as restricted mobility disturbed construction cycles by six-eight months. On the other hand, with companies calling employees back to offices, demand for rental housing continues to grow, giving landlords the upper hand.

“In the last five years, demand has been way ahead of supply in the case of Bengaluru,” said Vivek Rathi, who heads research at property consultancy Knight Frank India. 

“The highest demand-supply mismatch is in Bengaluru and that is why the highest rent increase is also in here. Now, with offices opening up, people are returning to town leading to a greater tenancy demand, while supply has not kept up,” Garg argued.

A landlords’ market

From demanding resumes to income records, besides enormous deposits, email approvals for guests to stay over and other stringent curbs - Bengaluru’s landlords have turned rather infamous. 

To add to tenant woes, home owners are now blatantly demanding higher-than-listed rents, alongside listing different rental prices on multiple property tech platforms after receiving queries from interested tenants.

“Properties I went to look at within a day or two of being listed on online brokerage platforms were already booked. Landlords then openly proposed that I pay more to rent the property,” attested Harsh Vitra, an engineer from Mumbai who moved into the city last month. “I was also grilled with multiple questions on topics ranging from my religion to caste, eating habits and if I planned on bringing female companions home,” he added.

Any end in sight?

Industry veterans gauge it could be three to four years before supply begins to inch closer to demand levels, thereby cooling rent inflation for residential properties in the city. 

While construction costs are moderating, interest rates remain elevated, which is prompting both parties - developers and buyers - to adopt a cautious approach, explained Rathi. Furthermore, any project undertaken today must navigate an average construction cycle of three to five years before completion, he added. 

Team Houseliv

BIGGEST HOUSING BOOM IN 15 YEARS HOUSELIV

The housing sector in India has been witnessing a significant boom in recent times, with various factors contributing to the growth. A Capital Advisors firm in the country has reported that this boom is probably the largest in the last 15 years. The firm’s Managing Director and CEO, Vipul Roongta, has attributed this growth to factors such as affordability and the aspiration of customers to own homes.

Roongta also noted that the residential real estate market has revived strongly after undergoing significant pain due to the new realty law RERA and demonetisation. The accountability enforced by RERA, which holds developers accountable for completing projects and can result in imprisonment for defaulters, has been a significant contributor to the sector’s revival.

To cater to the growing demand for affordable housing, the firm has launched a $3.2 billion real estate fund. 85 per cent of the capital has already been committed. Last year, housing sales in India reached an all-time high of nearly 3.65 lakh units across seven major cities, according to property consultant Anarock.

Kuldip Narayan, Joint Secretary, Union Ministry of Housing and Urban Affairs, said the size of the urban sector will double in the next 25 years.

He said the requirements for facilities, residential spaces, commercial spaces, and urban infrastructure would double.

“With increasing urbanisation from 12 to 30 per cent, the next 20 years could see more development than in the last 50 years,” he said.

Narayan also alluded to the government’s emphasis on changes in construction technologies highlighting the government’s “consistent stand on reducing carbon emissions and improving energy efficiency” and encouraging the industry to “adopt better and resource-efficient construction technology”.

Raj Menda, joint chairman at  FICCI Real Estate Committee and Corporate chairman at a real estate firm, said, “After consecutive years of slowdown in the sector, last year witnessed unprecedented growth by reaching a new historical height in the commercial office segment”.

He added the extraordinary demand for flex space from medium and large enterprises further propelled the sector’s growth.

Arun Chawla, director general at FICCI, said, “With an increase in urbanisation and household incomes, the demand for residential real estate has seen an unprecedented surge. As a result, India is now among the top 10 price-appreciating housing markets internationally.”

In conclusion, the housing sector in India is experiencing a significant boom, and the demand for affordable and mid-income housing remains strong. The government and private sector are working towards meeting the demand and providing the necessary infrastructure to support this growth.

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BDA cancels Rs 670-crore layout tender Houseliv

The Bangalore Development Authority (BDA) has finally cancelled the controversial Rs 670-crore tender that was called for the electrical works at the Dr Shivaram Karanth Layout. 

According to the notification published by BDA on March 10, the tender was cancelled “due to administrative reasons”.

While the BDA called for the tenders on February 24, on February 27, had reported that the BDA had floated the tender without seeking approval of the State Pre-Tender Scrutiny Committee, which came into force following “40 per cent commission” allegations in June last year.

The Committee, headed by Justice Rathnakala, had also flagged the issue to the state government and a report on the same was carried in  on March 10. 

It had also expressed concerns over such actions and said that they had derailed the purpose of the committee. 

Real Estate Bengaluru