Poorest revenue earner for BDA

Poorest revenue earner for BDA
Bangalore West fails to impress buyers
Deccan Herald

For the Bangalore Development Authority, its West division remains the poorest revenue earner.

A glance of the auction rates: At an auction held for ten sites in Rajivgandhinagar Layout next to Nandini Layout in West Bangalore on Monday, the average price per square feet was Rs 2,465. The highest was Rs 3,251 per sq feet, while the lowest was Rs 1,803. This, compared to the rates in Jayanagar, in Bangalore South, is less than half. At an auction held about three months ago, an intermediate site at Jayanagar IV Block fetched a whopping Rs 7,060 per sq feet.

Bullish


Jayanagar IX Block prices are also bullish. Two residential sites auctioned recently went for Rs 4,860 and Rs 5,225 per sq feet. The cost of BDA sites in BTM Layout, despite the area’s bad roads and flooding problems, remains steep. The average site rate, as reflected in a recent BDA auction of nine residential sites, was Rs 3,150.

According to BDA Chief Accounts Officer Narasimha Murthy, land in West division always fetched less than those at South, North and East divisions. South Bangalore, of course, leads the pack.

IT zones

“The prices are unarguable high in South Bangalore, because of the presence of IT zones. In West division, the layouts are old, formed in the early 1970s. Also, there is lack of development. The presence of ‘mixed layouts,’ where there are several revenue pockets in BDA layouts, is bringing down the land prices further,” Mr Murthy revealed.

However, interestingly, the BDA auction prices on Monday were largely above the market rate. Mohammed Faiyaz of Credence Realtors said the existing land price at Rajivgandhinagar Layout was about Rs 2,000. Seven of the ten BDA sites auctioned overshot that mark.

Mr Murthy attributed this to the ‘litigation free and clean documents’ that BDA auctioned sites came with.

“For a property buyer, it is important that the property papers are genuine and there are no litigations involved. For this, they do not even mind paying more for the property. Due to this reason, the site prices in BDA auctions have risen above the market rate,” he explained.





Average land prices of BDA

sites as per recent bids

Location Land prices (per sq feet) (Approx)

BTM Layout (Ist and II Stage): Rs 3,600-Rs 4,400

Jayanagar IX Block: Rs 5,200

Banashankari Ist and II Stage: Rs 4,100

Mahalakshmi Layout: Rs 2,574

Kumaraswamy Layout: Rs 2,400

JP Nagar VIII Stage: Rs 1,580

Rajivgandhinagar Layout (near Nandini layout):

Rs 2,465