The Hindu 10.06.2010
HMDA to auction plots soon
Staff Reporter
| It is likely to slash the offset prices |
According to an official, HMDA may cut the offset price by up to 30 per cent
Nearly 200 plots that did not get buyers in earlier efforts will be put under the hammer
HYDERABAD: The Hyderabad Metropolitan Development Authority (HMDA) which raised big money during real estate boom through auction of its plots is now planning to put some plots under hammer shortly. And given the prevailing scenario on property front, there is likelihood of a considerable slash in the offset price this time around.
According to HMDA officials, some 200 plots that did not get buyers during earlier efforts are to be put for auction, the date of which is to be decided shortly. The locations of these plots include Tellapur, Nallagandla, Miyapur and R.C. Puram apart from Nandagiri Hills, which during the peak of real estate boom drew wide attention from buyers.
Conceding that the existing scenario was not very positive for real estate, a senior official however, hastened to add, “Revenue from auction of plots is a major source for us and we are looking at tapping it”. And with the euphoria of boom having vanished, a more rational and realistic pricing suitable to present market is to be adopted. “A final decision is yet to be taken but we might cut the offset price by say up to 30 per cent,” he said. For last few rounds of auction of these individual plots, the HMDA did not get the response as it was anticipated. In fact, during February last year, when it put a total of 256 plots at different locations that also included Mushk Mahal and Vanasthalipuram, only 14 got takers. During that time, while the expectations were to be able to raise around Rs.100 crore through auction, the biddings actually ended up promising a mere Rs.8.32 crore. In all the 14 places, the bidding was slightly incremental than the offset price and at Mushk Mahal, the bidding quote was just the offset price.
