Analysis of the selling spree in Bengaluru’s flood-prone areas

The flooding in Sai Layout, Hennur, and various parts of Bengaluru following the heavy rains in September 2022 underscores a profound urban crisis. These inundations have not only disrupted lives but have also instigated a significant real estate upheaval. Property owners in flood-affected areas are being forced to sell their villas, flats, and houses at considerable financial losses, highlighting the city’s increasing vulnerability to urban flooding, as confirmed by IMD data.

The Northwood residential enclave at Yelahanka illustrates this dire situation. Mere days after residents were displaced, a villa valued at ₹2.5 crore was put on the market, with the owner uncertain of recouping even the original purchase price. This distressing scenario repeats across other localities, such as Rainbow Drive Layout, where a property owner, driven by recurring flooding, moved to a rented home and is now contemplating selling his villa at a significant loss. Similarly, in Sri Sai Layout at Horamavu, properties are being sold at half their original value, leaving owners with no choice but to accept substantial financial setbacks.

Residents are urgently calling for intervention from Deputy Chief Minister and Bengaluru Development Minister D.K. Shivakumar, especially with the monsoon season looming. The demand for swift and effective solutions is critical to mitigating the recurring flood threat.

The Confederation of Real Estate Development Authority of India, Karnataka, acknowledges the complexity of the issue. Although developers had obtained necessary approvals and constructed essential infrastructure like drains and culverts, persistent flooding signals deeper systemic flaws. Suresh Hari, the confederation’s secretary, mentions that developers are coordinating with BBMP and other agencies to address these issues, but he views the current trend of selling properties in flood-hit areas as a temporary phenomenon.

Despite such assurances, the recurring nature of urban flooding in Bengaluru necessitates a comprehensive and sustainable approach to urban planning and infrastructure development. The plight of property owners, grappling with financial losses and uncertain futures, underscores the urgent need for robust flood mitigation strategies and resilient urban development practices. Without these measures, the city’s vulnerability to such natural calamities will continue to have severe economic and social repercussions.

In conclusion, the situation in Bengaluru calls for a concerted effort from all stakeholders—government officials, developers, and residents—to implement long-term, sustainable solutions to urban flooding. The future of the city’s real estate market, and indeed the well-being of its residents, depends on our ability to adapt and innovate in the face of environmental challenges.

Read the full article here https://www.moneycontrol.com/news/business/real-estate/bengaluru-witnesses-highest-rental-yield-of-4-45-in-q1-2024-followed-by-mumbai-and-gurugram-12710542.html

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