Heavy rain has lashed Bengaluru in the past three days, creating havoc in parts of the city, India’s information technology (IT) and startup capital.
Visuals of submerged luxury villas and apartments have gone viral on the social media, especially images from areas close to Sarjapura, Bengaluru’s IT core, and the Outer Ring Road.
Yet, realtors say the flooding is unlikely to affect the construction sector in the city although it may dent property prices in the short term.
The Confederation of Real Estate Developers Association (CREDAI) said only 15 percent of the city had been hit by the flooding and even less in the southeast corner of the city.
"The waterlogging that we see is mostly in completed projects and not projects under construction. The loss is very high in places where people are currently staying," Bhaskar T Nagendrappa, President of CREDAI Bengaluru, said.
CREDAI said construction may be affected in small pockets across flooded areas in Bengaluru for a short period of time.
Nagendrappa said specific areas like Bellandur and Yemalur have been affected in a big way. However, “we do not have major construction in the area,” he said.
Little delay seen in projects
CREDAI said over the last couple of days, Bengaluru had received unprecedented rain. However, it is unlikely to delay property projects in the city.
Balaji Badrinath, realtor at real estate firm Coldwell Banker, added that waterlogging was minimal at construction sites in the city and was unlikely to affect project timelines.
Other realtors in Bengaluru added that even if some construction sites get waterlogged, builders are equipped to pump out the water.
A study done by Partha Pratim Biswas, a faculty member at the Department of Construction Engineering, (Jadavpur University), Kolkata, said: "It has been found that the monsoon has increased project duration by about 5 percent."
Realtors said the delay was negligible and can be overcome easily by pushing in more inventories.
Nagendrappa said real estate values had been conservative since 2016. After the COVID-19 pandemic, the sentiment has changed, and people want to buy their own homes today.
"Bengaluru is a booming market in the country because it is an end-user-driven market and not an investor-driven market. Any dip in demand is highly unlikely in the real estate sector in Bengaluru," Nagendrappa added.
Realtors in the city said that despite the outcry on social media, Bengaluru real estate will benefit from demand, especially in the upcoming festive season.
Pradeep Joe, chairman of the Confederation of Real Estate Associates, Bengaluru, said: "We have a short memory span. For example, there have been massive floods in Mumbai and Chennai. However, we did not see any dip in demand.”
He added: “This is an unprecedented event that is currently happening in Bengaluru. After a couple of months, this will hardly impact the demand in the city's real estate sector."
Ashish Sharma, City Head, Bengaluru, ANAROCK Group, "Rather than impacting the prices, the rains slow down the construction work at sites which inevitably leads to some delays. Several developers deliberately keep a buffer as the slowdown in construction work happens every year during the monsoon season."
Sharma added, that the major impact during the monsoon quarter each year is a slowdown in housing sales as compared to other quarters. This year too it will be no different. Also, many homebuyers postpone their buying decision for the upcoming festive season (Oct-Dec) which is considered the most auspicious period for buying a home."
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