Bengaluru Development Authority’s 1,026 unsold flats lead to ₹65 crore revenue loss

The Bengaluru Development Authority (BDA) is facing mounting financial pressure as more than 1,026 one-BHK flats constructed for economically weaker sections remain unsold across the city. The unsold inventory has resulted in an estimated ₹65 crore revenue loss, while the authority continues to spend around ₹25 lakh every month on maintenance and upkeep.

According to information shared in the Karnataka Assembly, a large number of these unsold flats are located in the Aluru Housing Project, where nearly 470 units are yet to find buyers. The issue has raised concerns over demand, pricing strategy, and housing allocation in Bengaluru’s affordable housing segment.

The monthly maintenance cost includes electricity charges for common areas, lift maintenance, waste disposal, security, and general property upkeep. Until the flats are handed over to Resident Welfare Associations, the BDA remains responsible for maintaining the premises.

Officials have stated that despite the current unsold stock, demand for BDA housing continues to exist and the flats are being offered at affordable rates. The authority has reportedly intensified awareness campaigns and promotional initiatives to improve sales momentum.

There are early signs of improvement. Officials noted that 198 flats were booked in February, a significant jump from 34 units in January, indicating a gradual pickup in buyer interest. The BDA has now prioritised clearing the unsold inventory by December 2026.

The situation also highlights the broader challenges in urban affordable housing, where location preference, connectivity, and buyer awareness often play a crucial role in sales velocity. With Bengaluru continuing to expand as a major employment and residential hub, the performance of such housing projects remains important for the city’s real estate and social infrastructure ecosystem.