Bengaluru Real Estate Traps: Flat Booked for Rs 1.2 Cr, Offered for Less

A software professional who rented a house in Bengaluru for six years to maintain job mobility abandoned plans to buy after encountering steep prices, legal complications and unexpected discounts that undercut his booking.

The worker, who until 2024 paid rent to retain geographic flexibility, began house hunting when rental costs climbed and peers purchased property. He discovered that leading developers priced two-bedroom flats between Rs 1.8 crore and Rs 2.2 crore, while smaller firms listed similar units above Rs 1.3 crore. Confronted with these figures, he secured a flat in east Bengaluru for Rs 1.2 crore after his agent warned that remaining units were nearly sold out and that rates would climb further.

Soon after booking, his lawyer flagged title irregularities and a history of delayed deliveries by the builder. He also learned that a friend had been offered an identical unit at a Rs10 lakh discount. The buyer cancelled his reservation and endured more than 100 follow-up calls before the builder refunded his booking amount.

His experience underscores challenges for home seekers in Bengaluru’s current real estate market. Prices span Rs 7,000 to Rs 18,500 per square foot, varying by neighbourhood. Rental charges for a two-bedroom apartment now reach Rs 30,000 to Rs 65,000 per month, with security deposits of Rs 3 lakh to Rs 4 lakh.

Market analysts forecast annual property price growth of 5 per cent to 7 per cent, and anticipate rents climbing by 10 per cent to 20 per cent in 2025. They attribute upward pressure to ongoing demand from technology professionals and limited land availability.

The software professional urged prospective buyers to verify property records, compare offers from multiple agents and negotiate on discounts before committing. He questioned why developers continue to market sold-out projects, defer price reductions until after booking and require mortgage payments years before possession.