Is Bengaluru's Real Estate sector in a freeze?

A number of real estate properties are lying stagnant in Bengaluru due to oversupply and legal disputes.

Real estate properties in Bengaluru are lying stagnant as demand for physical infrastructure availability dropped significantly in the last two years after the arrival of the COVID-19 pandemic, with more office-going folk shifting to working from home.

Real estate in Bengaluru city is taking a hit due to low demand and oversupply. ((PIC FOR REPRESENTATION))

This caused a number of newly built office spaces to remain empty and unused. The phenomena also held true for large-scale builders who promised flat handovers in 2020 and 2021, but construction work had to be put on hold as migrant workers travelled back home in the midst of the pandemic.

A number of real estate properties in Whitefield, Sarjapur, Electronic City, Kanakpura main road and Bannerghatta main road lay unoccupied as builders have been unable to produce legal documents to prove ownership of the property. Stagnancy is observed more in Electronic City because of travelling time and traffic hold–ups.

Complaints are registered against properties and builders on Real Estate Regulatory Authority (RERA) where the complainants are demanding compensation for delaying completion of projects by years. Builders delay project completion stating legal dispute. Many constructions have been stopped as the builders do not have permissions for extra floors.

There are other laws that apartments have to follow such as individual STPs, NOCs from the fire department and compulsory rain water harvesting. Constructions near lakes and other water bodies are also prohibited. Recently finished projects by reputed builders have unsold flats. No factors like nearby malls or metro stations seem to be helping sell more flats.

Projects that don’t register under RERA, are unlawful according to the Real Estate (Regulation and Development) Bill 2013.

A Resident Owners Welfare Association spokesman of a reputed gated community said “Once a metro line is established here, more people will start building their houses. Most of our sites are sold, but not many houses have been built. We are waiting for connectivity.”