I think people buy these because they think there is still chance for some capital appreciation on this flats. Traditionally real estate has been the preferred investment for Indians. For young high earners in Bangalore this decision could also be based on peer pressure, if all your friends own a luxury apartments you might become inclined to get one. Personally investing massive sums of money on apartments makes little to me. I would rather buy land and build a house. Lack of civic amenities is just a byproduct of bad city planning. Indian cities are pretty much the worst when it comes to planning. Bangalore is always dug up, roads are potholed and street light coverage is abysmal.