Ban on Construction of New Apartments in Bangalore- How Does it Impact?

Date: 1-July,2019Last Updated: 26-September,2022
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The Government of Karnataka is in talks to enforce a Ban on the Construction of New Apartments in Bangalore or any Multi Storeyed Buildings.

With Water Levels in Bangalore dropping drastically, the Deputy Chief Minister informed the Media of the upcoming developments, speculating that the ban could be five years long.

On being questioned on the reason behind this, he alleged that Builders & Real Estate Developers failed to prevent water scarcity & ensure water availability to Home Buyers & Owners of Homes in multi-storeyed buildings in the Housing Sector.

Further, attributing the ongoing deliberations to the issues faced by the home dwellers in such apartments, he stated that during a water drought, residents are forced to arrange for Water Tankers whose water has been alleged to cause Waterborne Diseases & Skin Diseases.

Also, he announced that the Government authorities would soon organise a meeting with All Developers & Builders in Bangalore and would hold detailed discussions on the same. Following this, the Government is expected to declare the final regulations that they will implement.

Later on, the Deputy Chief Minister confirmed that under his instructions, the Bruhat Bengaluru Mahanagara Palike officials shall ensure that all the Apartments in Bangalore comprise fully functional sewage treatment plants.

All these developments seem to be a drive by the Government of Karnataka to further regulate Real Estate in Bangalore & ensure that Property Buyers here are Benefitted the most.

How will a Ban on Construction of New Apartments in Bangalore help Homebuyers & Homeowners?

A ban on Construction of Apartments in Bangalore that are newly constructed means a spike in the Demand of Ready to Move in Properties & Under Construction Projects. This means Home Owners will realise property appreciation on their Real Estate Investments when there’s a surge in demand and a undersupply of Properties for Sale.

If this Ban materialises, Property Buyers & Home Owners who already possess or plan to invest in Residential Projects in Bangalore are set to enjoy a high Return on Investment.

From a Real Estate standpoint, Why a Ban?

With industry experts expecting Residential Property prices in all of India to shoot up in the second half of this Financial Year, Soaring Demand is causing a major upswing in the prices of Real Estate in Bangalore.

Let’s not forget the Government of India has been proactive with its ‘Housing for All by 2022’ initiative. Apart from providing the Central Government’s assistance in the development of Urban Local Bodies (ULB) in all States & Union Territories, it has also introduced & enacted new reforms in various aspects pertaining to the Residential Real Estate sector.

Home Buyers across India must understand the Vision that the Government has. The Government as a policy has adopted a stronger attitude towards Real Estate and is constantly encouraging & motivating Property Buyers to invest in Residential Real Estate.

Clearly, it has ascertained the potential & the weight that the Real Estate sector holds in the Economy. Which is why it can be seen that in spite of all odds, the World’s Second Most Populated Nation is thriving in the Real Estate sector.

In case of a Ban, will the Central Policy align with Bangalore’s approach?

Yes, it definitely will. On the outlook, the Central policy is positive and seems to be getting more inclined towards Citizens Buying Properties.

If you look more deeply into the Central Policy, it is evident that the push towards Under Construction & Affordable Properties is massive as it is focused on clearing the huge inventory of Unsold Properties that have accumulated in the past few years. Quite visibly, a cleanup of the retentive properties in the Market is intended.

Also, with the RERA Act charting the course of action for Real Estate Properties, the onus of clearing Unsold, Ready-to-Move-in & Under Construction Properties is on the various sops that the Authorities have granted and the regulations & new reforms that they have enforced. With the intention of making a more prosperous Market, they enacted major tax reforms as well.

Considering all this, Property experts are suggesting that whether a Ban or not, Property Buyers of Apartments in Bangalore or any Real Estate in Bangalore shall enjoy a high Return on Investment, Property Appreciation and a spectacular investment portfolio.

Who will actually Benefit if there’s a Ban?

Usually, a lot of Home Buyers plan their Real Estate investments in a way that they have a Home to stay and a House they rent out to gain a significant Return on Investment, after covering the Cost of the Property & Maintainance of the Property.

People who have the abovementioned approach towards their investment portfolio shall benefit the most. Also, Property Buyers and Home Owners who choose to capitalise on the current developments in a proactive fashion shall reap the fruits of their investments in rainier days.

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