Water crisis in Bengaluru
Credit: DH Photo/ B H Shivakumar
Bengaluru: In a social media poll conducted by DH on Saturday, an overwhelming majority of nearly 200 respondents indicated that the ongoing water scarcity in Bengaluru is likely to impact their real estate investment decisions in the city, going ahead.
About 87 per cent of those polled said that the unprecedented water crisis has become a cause of concern for their property investment plans in the city, while nearly 61per cent are now evaluating investment options in other cities which don’t suffer from the same kind of issues. The poll was conducted on DH’s official X and LinkedIn accounts.
Months before summer sets in, an acute water shortage in the city has left residents scrambling for the crucial everyday resource amid dried up borewells, and costly private water tanker services. Those in the commercial sector, especially industries dependent on regular water supply for day-to-day operations such as textile and hospitality, are also bearing the brunt of the contingency.
The state government has blamed inadequate monsoon in the past couple of years, leading to reduced water levels in Cauvery river, the primary source for the city.
“Queries from prospective homebuyers regarding borewell depth at project sites have increased of late,” Shivam Pathak, a sales manager at Bengaluru-headquartered TG Developers, said. Enquiries and sales numbers tied to end user homes have however not witnessed a dip yet, he added.
“We do expect buyers to do more diligence on the hard infrastructure status of the projects where they plan to buy. This doesn't include just water availability but also sewage treatment, EV charging points, solar or renewable energy, etc,” Sudhir Pai, chief executive of property search portal Magicbricks, seconded.
Around 59% of the poll respondents scheduled to move to the state capital for various reasons said that they have postponed their plans in light of the ongoing shortage. Meanwhile 63% are mulling a delay in renting or purchasing their next property in the city, per the poll.
This rising discontent rings alarm bells for the city’s real estate sector, which registered a nine-year high sales volume of residential units at 54,046 in 2023, according to a January 2024 report by property consultancy Knight Frank India.
“It (the DH poll result) is a reaction to the crisis and not emblematic of a longer term trend,” Pai said. Stating earlier instances of water shortage in the city, including during the Covid-19 pandemic, he highlighted the positive mid and long-term investment trends in Bengaluru for reassurance.
“The Bengaluru real estate market will not go down, the government will come up with appropriate solutions,” Pathak added. Property developers however have to ensure better utilisation of rainwater harvesting benefits beyond car wash and gardening purposes, he said, adding that they will also have to look at ground water recharging more seriously.