Government Puts A Stop on High Rise Construction In Bangalore
The government has taken a bold step and has imposed a ban on the construction of high rise apartments in Bengaluru, one of the most developed cities of India. The major decision has come after the government realised the acute shortage of water in the city and how it could lead to a water crisis in the near future. Within the last 2-3 years, the construction in the city has subsided by almost 50% owing to several factors like demonetisation, GST and strict implementation of National Green Tribunal Rules.
Bengaluru has always been a synonym of massive growth and real estate development in India but since the last couple of years, Bruhat Bengaluru Mahanagara Palike (BBMP) has received only half of the construction requests for apartments as compared to the requests it received 5 years back. Bruhat Bengaluru Mahanagara Palike (BBMP) has the authority to sanction high rise constructions in the city and till August 2019, it was presented with only 30 requests for the same. A few years earlier, the annual mark of construction requests was 900.
Commenting on the trend, R Prasad, Additional Director, Town Planning, BBMP said the “number of plan sanctions across the city had reduced by over 50 per cent in the last three years”. The shortage of water and Solid Waste Management policies in the city could also be cited as the reason for downgrading construction and developments. Suresh Hari, Chairperson, CREDAI, states that demand in the market was as per the trend only but various factors were not able to fulfil those demands.
People are afraid of investing their hard-earned money because various government reforms might degrade the return on investment. These unsold units have minimal resale value for now and the industry is hoping for some sunshine in the near future to bring back the traditional boom for the skyscrapers in the city. The citizens are turning towards the countryside for investments in farmlands to make the best use of their money. This kind of investment attracts everything well within the budget and provide security to the invested money, unlike the city properties which are at a verge of deflation with every passing day.