Unscientific logic behind BDA pricing

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Joined: June 17th, 2009, 2:21 pm

Unscientific logic behind BDA pricing

Postby msn1270 » August 2nd, 2016, 4:45 pm

Dear Pals,

I'm neither discouraging nor trying to create negative wave against those who applied for Kempegowda layout. But, personally i'm not happy with the way BDA is charging for their Kempegowda layout and without thinking logically 1000's of us have applied for it. Here are some of my points for discussion.

1. Generally the price per sq.ft of a site reduces when the size of the plot increases. But in BDA Case, its exactly reverse. Price increases as the size of the plot increases.(20X30: Rs. 1,800/sq.ft, 30X40: Rs. 2,000/sq.ft, 40X60: Rs. 2,250/sq.ft & 50X80: Rs. 2,500/sq.ft). So definitely BDA pricing is against the market norms. Earlier BDA used to charge a flat rate for all sites irrespective of the size.

2. BDA has not yet developed the layout. But its charging above the market price and the plots available surrounding areas which are already developed will all the basic amenities. The basic development may take minimum 2 years and maximum - No idea. so is it really worth to buy this BDA plot at premium price in advance ??

3. BDA site price is above the guidance value fixed by the State Government. Current Guidance Value in most of these areas fixed by the State Revenue department is ranging from Rs. 994 to Rs. 1651 and in only in one village its Rs. 2000/sq.ft. Wondering how come a BDA a Govt Body can charge above the Guidance Value fixed by the State Government itself. (For BDA auction sites, this rule doesn't apply).

4. site loans are always costlier than the Home loan. Got to know from Media, that no banks is accepting Combo Loan applications from the Kempegowda Layout applicants who got their names in the provisional list. Reason, the area is not yet developed and as per the combo loan terms & Condition, the borrower has to start construction within 2 years of getting loan. The chances of meeting their requirement is near to impossible.

5. This layout has 2 or 3 Garbage processing units in the middle of the layout, whose effect can be experienced for several KM radius. I can't imaging those successful applicants who sites are near to these units are the most unluckiest people on this earth. As they have to hold this pricey site for minimum 10 years and after that also they have least chances for resale options.

The only justification BDA is giving is, its decided by the BDA Board meeting. Anyone can guess in the present scenario who becomes the board members in an Body controlled by the State Government. Those members are not ordinary people who wait for 20+ years to get their first site at a reasonable rate.

I'm open to listen to all others & feel free to express your opinion.
Last edited by msn1270 on August 3rd, 2016, 9:12 am, edited 1 time in total.

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Joined: December 7th, 2011, 11:50 am

Re: Unscientific logic behind BDA pricing

Postby chandraklc » August 2nd, 2016, 6:22 pm


already the discussion is going on in this thread.
What next for allotees of KG Layout.


Posts: 15
Joined: July 17th, 2016, 8:24 am

Re: Unscientific logic behind BDA pricing

Postby vpatil » August 2nd, 2016, 7:04 pm

I feel very sorry for our friends who have applied for KG layout and got stuck.
It would be a good idea come out of it and buy a plot in resale in the adjacent established BDA layouts.

Posts: 109
Joined: June 13th, 2016, 10:33 am

Re: Unscientific logic behind BDA pricing

Postby bhrat.87 » August 22nd, 2016, 3:31 pm

Hi All,

I have a plot in KNS Anirvan Project (Site No.40) ready for sale.
About 15 people are constructing houses there.

If anyone interested, Kindly mail me at xxxxxxxxxgmail.com for references. Plot size is 1500 sqft.

Bharath Madgula

Post your 'for sale' in classifieds sub forum.Also you need to follow the standard format of mentioning all the details .

Edited by ADMIN

Posts: 346
Joined: June 7th, 2009, 6:30 am

Re: Unscientific logic behind BDA pricing

Postby tvsh » August 23rd, 2016, 8:25 am

This is what I have come to realize.This country runs on emotions and faith. So looking for logic in how things are done itself is unscientific :).

Since the OP has given me the freedom to express my opinion, Here is my take on your queries. I am not justifying what they are doing. I am trying to find a reason for their unreasonable actions.

1. BDA is supposed to have a social component built in the allocation. Hence the various quotas (Market forces do not have quotas, hence BDA does not function as per market norms.) So the smaller sites applicants are from comparatively lower income, hence the lower rates for smaller sites.

2. Developer develops the land and wants to sell them quickly to recover his investment. BDA, being a gov't body, the Various vested interests want to milk the opportunity and will take a decade to complete the process. So the cost is higher, as they have to build in the various costs they incur to complete the process. Is it worth to buy at this premium?. Definitely no. But then there are some who do not mind paying a premium to a BDA site so that they can have peace of mind. BDA is targeting such individuals. More over less number of applicants, less headache in processing them.

3. Guidance value is set by revenue department to collect at least some taxes on the sale of property. It has no bearing on Gov't orgs such as MUDA/BDA etc. I remember attending a auction at MUDA in 2004, where the bidders collided among themselves and stopped bidding slightly above guidance value. The process was complete and later MUDA cancelled the bid and declined to provide the site. Their take was that the bid was much below the market rate, hence MUDA would loose money selling at Guidance value. Everything is according to their whims and fancy.

4. Everyone knows BDA is an org that needs 10 to 15 years after allotment to lay drainage pipe, put up street lights and tar the roads, yet expects the allottees to construct house within 5 years. They promptly collect taxes and increases the taxes multiple times, without providing the basic facilities needed for allottees to construct the houses. So if the banks are not willing to provide composite loans, I think in their wisdom, they deem a composite loan to a BDA allotee is less secure than a loan to Mallya.

5. Luck does play a big role in BDA allotments for sure.

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