BDA board.
Credit: DH Photo
Bengaluru: The Bangalore Development Authority (BDA) is considering partnering with private realty firms to construct apartment complexes on its land.
The planning agency is working on the idea because it has been unable to sell the nearly 3,000 flats it has built in different parts of Bengaluru.
The BDA’s poor track record and substandard work are believed to be the reasons for the poor response.
The concept of entering into a joint venture with real estate developers was discussed at a meeting held in late November and chaired by Deputy Chief Minister DK Shivakumar, who holds the Bengaluru development portfolio, reliable sources told DH.
He is convinced of the proposal because hundreds of BDA flats — constructed at a cost of more than Rs 1,000 crore — have remained unsold for years.
Given that the BDA owns large tracts of vacant land across Bengaluru, officials believe that building affordable flats in partnership with private developers is better in many ways because the BDA wouldn’t have to invest in the project. It can instead earn a certain amount of revenue or saleable flats.
A senior BDA official confirmed to DH that such a proposal came up for discussion recently but added that there hadn’t been many meetings afterward. “We have not been able to sell flats despite offering them at much lower rates. While we provide more amenities for a reasonable price, we are taking a beating as we are not able to market them well,” the official said. Residents who have bought flats developed by the BDA have mixed opinions about the quality of work.
Sumanth R, who bought a one-bedroom flat at Valagerahalli for Rs 20 lakh, said he was happy with the dwelling, and he didn’t face any issues.
However, the owner of a BDA flat in Kanmanike is distraught because the agency has neither built an approach road to the apartment building nor provided the promised amenities. Developers welcome the idea of having joint ventures as such arrangements are already successful with landlords.
“At the moment, a landlord gets anywhere between 28% and 50% of the saleable flats based on the location of the land. Similar arrangements or revenue-sharing models can be worked out with the BDA,” a prominent builder said, cautioning the possibility of undue demands by the BDA beyond the scope of agreements.