Empty Homes In A Housing-Starved City: Why BDA Units Rem­ain Unsold In Bengaluru

Last Updated:February 24, 2026, 15:24 IST

In an attempt to clear the inventory, the BDA organized housing "melas" and offered a 5% discount for bulk purchasers. However, these incentives have failed to move the needle.

Owning a home in Bengaluru is a lifelong dream for many, representing a sense of stability and achievement in India’s fast-growing Silicon Valley. To make this dream accessible, the Bengaluru Development Authority (BDA) has constructed several multi-storey residential complexes and luxury villas on the city’s outskirts.

It offers these properties at prices significantly lower than those of private developers. However, despite these competitive rates, a significant portion of this inventory remains unsold, with 2,294 units currently sitting vacant.

The Infrastructure Bottleneck

The primary deterrent for potential buyers is not the price, but the lack of basic habitability. Most BDA residential complexes are situated in peripheral areas that currently lack reliable road connectivity.

The absence of essential public infrastructure, such as functional streetlights and consistent water supply, has made these projects unattractive for families. Furthermore, many of the older constructions are showing signs of neglect, with reports of water leakage through walls and structural dampness.

The lack of a centralized or effective Apartment Residents’ Association has also led to severe maintenance lapses. Without a dedicated body to oversee daily operations, the cleanliness and security of these premises have deteriorated, forcing even those who have already purchased units to stay away.

Rental Despair and the Villa Surplus

The crisis extends beyond sales to the rental market. In areas like Kanminike, Konadasapura, Alur, Valagerahalli, Gunjur, and Thippasandra, many owners who purchased flats as investments or future homes are unable to find tenants.

The lack of amenities and remote locations mean that even at low rental yields, people are unwilling to move in. The situation is particularly dire in the luxury segment.

At Hunnigere, 109 3-BHK villas were constructed three years ago, but only 16 have been sold, leaving 93 vacant. The 4-BHK segment is even worse; of the 120 villas built, only 24 have found owners.

The BDA’s decision to hike villa prices, citing increased construction costs has backfired, pushing these properties out of the “affordable" bracket that buyers usually associate with the Authority.

Stalled Sales Strategies

In an attempt to clear the inventory, the BDA recently organized housing “melas" (fairs) and offered a 5% discount for bulk purchasers. However, these incentives have failed to move the needle.

The BDA Chairman recently proposed involving private builders to sell the remaining inventory. However, private developers are reportedly hesitant to enter the fray, citing low commission margins compared to their own high-end projects.

Statistical Breakdown of Vacant Units

The following data highlights the scale of the unsold inventory across various phases:

In total, out of 6,116 units constructed across these key locations, only 3,762 have been allotted, leaving the BDA with a massive dead-asset burden of 2,294 units. Until the Authority addresses the core issues of connectivity and maintenance, these “affordable" homes may continue to remain empty monuments of urban planning failure.

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