Gone are the days when residential projects around or overlooking lakes in Bangalore used to sell with a premium tag. The hoardings reading ‘premium lake-facing homes’ that once adorned prominent junctions in Bangalore are no longer seen.
With lakes turning into garbage dumping yards, homebuyers have also become highly cautious about realty projects around lakes.
While Bangalore’s lakes have been in the news for more infamous reasons, let’s try to understand the nuances of investing in lake-facing homes in the city.
In general, apart from the scenic views, residential projects close to water bodies have a higher probability of price appreciation. However, considering the current situation of some lakes in the city, this might not really be the case!
The norms
Bangalore’s brush with heavy rains in July 2016 woke up government authorities from their deep slumber. The Chief Minister gave a stringent order to the BBMP to retrieve and reclaim the lakes and storm water drains.
Thus, the National Green Tribunal (NGT) increased the buffer zone for projects around lakes from 30 to 75 mts.
Recently, 99 apartments in the Bellandur catchment area were issued notices for letting sewage into the Bellandur and Varthur lakes. These projects have been given the deadline to set up their own sewage treatment plants (STPs).
Points to consider before you invest
Before investing in a lake-facing project in the city, prospective buyers must ensure that the developer has all the regulatory clearances in place.
Also, checking if all the norms set by the National Green Tribunal (NGT) are strictly adhered to is highly recommended. The project must have its own sewage treatment plant.
The cost factor!
In terms of cost, these homes usually come at a higher price. Moreover, the upkeep of such homes is also costlier than a normal home. For instance, only a specific type of paint can be used., the chances of rust in lake-facing homes are also high, etc.
The impact of the Revised Master Plan 2031 on redevelopment
As per the Revised Master Plan, properties on the 75 mts. buffer zone cannot be redeveloped as authorities will not sanction the revised development plan. As per the market estimates, this will impact as many as 158 properties around Ulsoor Lake and about 116 properties around Sankey Lake.
Now, this announcement can have a negative impact on the value of these properties.
With no scope for redevelopment, owners might neglect these properties as the value will just depreciate. When the rents were frozen in South Bombay under the Rent Control Act, property owners lost interest in maintaining the properties due to lack of returns. The result? Till today, several buildings stand in a dilapidated condition.
Increasing encroachment
With increasing population, the demand for housing grew at a fast pace in the city. With land parcels getting exhausted and soaring property values, making land out of ‘no man’s land’ seemed like an appropriate solution to many developers. From a city of beautiful lakes created by Kempe Gowda and the Wodeyars of Mysore and then the British, Bangalore has metamorphosed into a solid concrete jungle.
This year’s state budget has set aside Rs 20 Crore for the development of 40 lakes. Under the ‘Dhanvanthari’ programme, it has proposed measures like planting medicinal saplings by the lakeside.
Clearly, with stringent norms in place, the times are now charging for good. And with the 2018 elections fast approaching, it will be interesting to see how the lakes in the city will be revived.
