Bengaluru water crisis: Has it impacted real estate sales and rentals?

Photo Credits: Pexels

<img src='https://www.hindustantimes.com/ht-img/img/2024/04/24/900x1600/house_1713933242309_1713933248004.jpeg' width='720' height='1280' alt='house' style="position: relative; z-index: 0;"/> Posted By Khushi Pal Published Apr 25, 2024 Hindustan Times Real Estate <img fallback src='/res/images/logo.png' class=' img-fill elementStyle' width='1000' height='1000' alt='Hindustan Logo'/>

Construction activity and the Bengaluru water crisis

Much of the blame for the water crisis in Bengaluru lies with the rampant construction across the city.

Construction sites across Bengaluru constitute a major proportion of water consumption, mostly met through borewells. This has led to the depletion of groundwater tables in several parts of the city.

Impact on housing sales

Housing sales in Bengaluru have dipped by 2% to 13,133 units from 13,390 units in the year-ago period due to a reduction in sales in the affordable category even as the office demand in the IT city remained flat at 3.5 million square feet, a report by Knight Frank has said.

The less than ₹50 lakh housing segment has seen a sales decline by almost 65% to 70% in the first quarter of 2024 which has brought down the overall numbers. The sales in the ₹50 lakh- ₹1 crore residential segment has dipped by 7 percent.

Impact on housing rentals

In localities that do not have access to direct water supply from the Kaveri, apartment owners are finding it difficult to find tenants. The number of people scouting for rented accommodation in these areas has also come down drastically.

IT capital left high and dry ahead of peak summers

Just as property prices in Bengaluru were impacted during the monsoons in 2022, experts say that the ongoing water crisis may also dent real estate markets in areas located close to the IT corridors.

What more needs to be done?

Experts say that the city needs to work towards removing encroachments on water bodies; impose penalties for those not adhering to rainwater harvesting rules and last but not the least reuse sewage water.

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Photo Credits: Pexels

Bengaluru water crisis: Has it impacted real estate sales and rentals?

Construction activity and the Bengaluru water crisis

Photo Credits: HT File Photo

Much of the blame for the water crisis in Bengaluru lies with the rampant construction across the city.

Photo Credits: HT File Photo

Construction sites across Bengaluru constitute a major proportion of water consumption, mostly met through borewells. This has led to the depletion of groundwater tables in several parts of the city.

Photo Credits: HT File Photo

Impact on housing sales

Photo Credits: Pexels

Housing sales in Bengaluru have dipped by 2% to 13,133 units from 13,390 units in the year-ago period due to a reduction in sales in the affordable category even as the office demand in the IT city remained flat at 3.5 million square feet, a report by Knight Frank has said.

Photo Credits: HT File Photo

The less than ₹50 lakh housing segment has seen a sales decline by almost 65% to 70% in the first quarter of 2024 which has brought down the overall numbers. The sales in the ₹50 lakh- ₹1 crore residential segment has dipped by 7 percent.

Photo Credits: Pexels

Impact on housing rentals

Photo Credits: Pexels

In localities that do not have access to direct water supply from the Kaveri, apartment owners are finding it difficult to find tenants. The number of people scouting for rented accommodation in these areas has also come down drastically.

Photo Credits: Pexels

IT capital left high and dry ahead of peak summers

Photo Credits: Pexels

Just as property prices in Bengaluru were impacted during the monsoons in 2022, experts say that the ongoing water crisis may also dent real estate markets in areas located close to the IT corridors.

Photo Credits: HT File Photo

What more needs to be done?

Photo Credits: Pexels

Experts say that the city needs to work towards removing encroachments on water bodies; impose penalties for those not adhering to rainwater harvesting rules and last but not the least reuse sewage water.

Photo Credits: HT File Photo