The Bangalore Development Authority (BDA) has reversed its previous decision to increase the initial deposit required for the purchase of its residential units. The updated rates are now consistent with those that were in place prior to May 1, 2025.
This decision follows numerous complaints from the public, who deemed the heightened deposit requirement to be unaffordable and a hindrance to obtaining home loans. The initial deposit, which is collected at the time of booking flats, sites, or villas developed by BDA, was previously doubled earlier this year due to high demand.
However, this action faced significant backlash and resulted in a noticeable decline in bookings. Until recently, applicants from the general category were obligated to pay 25% of the total property cost upfront, while members of the SC/ST community were charged 10%. With the latest adjustment, general category buyers will now be required to pay 12.5% as an initial deposit, while SC/ST applicants will pay 5%, reverting to the rates that were in effect before May 1.
“There was a significant drop in online bookings following the increase in rates. Many potential buyers struggled to gather such large amounts on short notice, particularly since bank loans can only be accessed after the initial payment is made. We have now reinstated the previous rates in response to public feedback,” stated a senior official from BDA.
The official further noted that there remains a high demand for flats and houses, but the increase in deposit requirements acted as a deterrent, especially for middle-income and economically weaker sections. Buyers expressed that paying 25% upfront restricted their liquidity and rendered them ineligible for loans from financial institutions, as they had already committed a considerable amount without formal loan approval. BDA is also intensifying its efforts to attract buyers.
As part of this initiative, it will organize a flat expo at the Kaniminike Housing Complex on June 21, from 9 am to 5 pm, where available units will be displayed. Officials anticipate a strong turnout, particularly with the rollback of deposit rates now in effect.This move is expected to revive demand and restore public confidence in BDA’s housing projects, many of which are located in fast-developing corridors of the city.
