Bengaluru, a hotspot investment destination is now under tremendous pressure. The booming real estate market, considered one of the most lucrative, has been brought under considerable strain by the proposed five-year ban on apartment construction by the Karnataka government.
Yes, the city’s water resources are in danger, prompting the government to propose a moratorium as the solution. However, the proposal will impose a new burden, this time on the real estate sector, just as the industry emerges from what has been a roller-coaster ride over the last two years.
Now the third most populous city in India, after Mumbai and Delhi, with a total population of 12.95 million and rising, Bengaluru is also among the world’s top 10 fastest growing cities, boasting an average economic growth rate of 8.5 percent. Thousands of people migrate to this city every year, looking for jobs, putting pressure on the city’s infrastructure. The growing number of IT and ITeS companies are also attracting a talent pool from other countries. Safety, climate and a top-quality education have made Bengaluru the choice for Indians and expat communities alike. All this has triggered an exponential growth in the real estate industry.
The demand for housing in Bengaluru is massive. The city has seen the second-highest sales growth, among the top seven cities in the country over the last two years. It is a frontrunner in the South Indian property market. The inflow of people has increased the demand for housing year after year, with developers launching a slew of new projects to meet these needs. Bearing in mind the central government’s vision of Housing for All by 2022, developers are also building affordable housing segments, which can solve the city’s housing needs. The government’s decision, made at this crucial junction, will stress out the industry and hamper the city’s growth.
Banning the construction of apartments will have a detrimental effect on the city’s overall development, too. With the current demand for housing, existing properties and unsold inventory will become more expensive, leading home buyers and investors to explore other markets. Rentals in the city will also be more expensive, making the city less liveable and less investor-friendly.
But it’s true. A growing water shortage is one of the crucial issues we face right now. Years of rapid urbanisation, swelling population and poor water management have led to the drying of lakes and depletion in groundwater levels. This is a clear indication that the city was not ready for the magnitude of the technology boom and failed to plan adequately to meet growing water needs.
Bengaluru currently gets its water from the Cauvery, which is over 100-km away from the city. Each day, 1.4 billion litres of water are pumped through its pipes. Despite this, there is a huge shortage of water in many areas, which pose a major threat. The city’s groundwater levels are falling rapidly and research predicts that it will be scarce after 2020.
Banning construction, however, is not a solution to the crisis we face today. This needs a long-term approach and must be addressed wisely through a number of different measures. For instance, groundwater depletion can be mitigated by putting a check on the increase of borewells. This is a necessary step. Encroached lakes should be recovered. BWSSB should run a check for leaking pipes and repair them immediately. 20% of the water we get is lost due to leakages in old and corroded pipes and storage units. Checking leaks in the distribution network and the main supply line should be mad e apriority. Reuse of water should also be introduced in all possible places, including gardening, washing vehicles and in bathrooms.
The government should initiate programmes aimed at environmental protection, conserving the existing greenery, maintaining water bodies and towards a planned water supply and purification system. Water recharge and water recycling are the two steps the government should take instantly. Subsoil recharge helps improve groundwater levels, which needs to be implemented.
Rejuvenation and restoration of lakes is another area of crucial importance. Bengaluru, which had more than 260 lakes in 1960, now has about 80, most of which are ecologically dead. Exploring opportunities through PPP models to remove pollutants from and rejuvenate existing water bodies needs to be tackled on a priority basis.
It isn’t just the developers. The government’s decision will impact the lives of thousands of construction workers as well. The real estate sector is the second largest job creator in the country. There are around 1.2 million migrant workers from the states like Rajasthan, Uttar Pradesh, Bihar, Odisha, Chhattisgarh, and Jharkhand are working in the construction activities in the state. All these workers will have to move to other states for their livelihood if this proposal by the government is implemented.
Bengaluru is a growing city. City’s population has doubled since 2011 and is predicted to hit 20 million by 2031. Therefore, it is wise to plan and build the city for growth rather than finding short term solutions.
(President Elect, CREDAI Bengaluru)
