Realtors, builders strike it rich, thanks to Arkavathi

Realtors, builders strike it rich, thanks to Arkavathi
Deccan Herald

A developer recently bought an acre of land in Thanisandra for Rs 1.95 crore, while another paid Rs 1.75 crore for an acre in K Narayanapura.

A developer recently bought an acre of land in Thanisandra for Rs 1.95 crore, while another paid Rs 1.75 crore for an acre in K Narayanapura. These land developers intend to build apartments and they know one sq ft will easily fetch them Rs 2,500. Both of them thank the BDA’s Arkavathi project.

On the other hand, there are people like Venkateshwaran M R, a former employee of Nabard, who nurture a dream to own a house in Bangalore. After eight attempts, he was considered by the BDA for the Arkavathi layout.

But Venkateshwaran is not sure of where his dream is headed. Notwithstanding the recent order by a division bench of the High Court which removed the hurdles to the project, he still wonders, “Will I get the site this time?”

Venkateshwaran’s disbelief is understandable given the tortuous course the project has taken ever since it was conceived by the BDA in 2002. Nearly four years down, BDA’s ambitious project ever is still trapped in birthpangs. Like Venkateshwaran, the plight of 19,999 people, who have been selected for sites under the project, is not any better.

Yet, there are several people who have reaped rich benefits from the Arkavathi layout. The beneficiaries are - land developers, realtors and the villagers of Dasarahalli, Byrathikhane, Challakere, Geddalahalli, K Narayanapura, Rachenahalli, Thanisandra, Amruthahalli, Jakkur, Kempapura, Sampigehalli, Sriramapura, Venkateshapura, Hennur, Hebbal and Nagavara.

Munikrishnappa of Thanisandra village says that he sold his half-acre land for Rs 57 lakh. “We bought seven acres of land at Rs 1.5 crore per acre,” says a realtor.

Prices surge

Real estate expert Selva Kumar says: “The announcement of the project was a happy news for many. The prices have increased 10-fold. Developers are buying land to build apartments. A square foot will easily fetch them Rs 2,500.”

The land prices are soaring in the Bangalore East and North taluks ever since the BDA issued a preliminary notification on February 3, 2003 announcing its plans to acquire 3,839 acres of land for forming sites. Now, after the High Court division bench upheld the project, it is surging.Those whose lands were left out from the list of acquisition by the BDA are also a happy lot. The 3,839 acres in the preliminary notification shrunk to 2,750 acres in the final notification (by 1089 acres). Now, their one acre of land is worth Rs 1.5 crore to Rs 2 crore. If it was acquired by the BDA, then they would have got a meagre Rs 11 lakh to Rs 20 lakh per acre as compensation. H Kodandaramaiah of K Narayapura says: “One acre of land which was left out from the preliminary notification was recently sold at Rs 1.75 crore to a land developer.”

Consider this for calculation sake - BDA would have paid Rs 217.8 crore as compensation for the 1089 acres (left out from the preliminary notification). Now, the market value, calculated at Rs 1.5 crore per acre, totals up to Rs 1633.5 crore.

HIGHLIGHTS:

* BDA pays a compensation of Rs 11 lakh to 20 lakh per acre

* Existing market rate is Rs 1.5 crore to Rs 2 crore

* 1089 acres of land left out from the preliminary notification is now worth around Rs 1633.5 crore. Realtors, builders strike it rich, thanks to Arkavathi