The Hindu 29.11.2010
HMDA may revive plot auctions
| Move comes as cash strapped body has no other way of attracting investments |
Auctions helped HMDA keep its finances going during real estate boom with competitive bidding
Auction held in June-July saw 513 bids being placed and 50 p.c. of 229 plots getting picked up
HYDERABAD: As financial constraints pinch it badly and with no hopes of its empty coffers getting some inflows, a beleaguered Hyderabad Metropolitan Development Authority (HMDA) is contemplating reviving the auction of plots.
However, whether the move would bring any respite to the cash strapped authority given the prevailing market sentiments towards property, is a question that even officials are wary of taking a guess at.
Bidders staying away
During the real estate boom, auctions of plots helped HMDA keep its finances going with most bids attracting stiff competition among bidders and land prices too began to climb steeply. Later, auctions kept failing and some of them went in vain after bidders chose to stay away and most properties got the tag of ‘leftover plots'.
Few choices
But with little choices left to raise money, the idea of issuing a call for auction of its leftover plots and some new ones has been active within the HMDA.
The positive response to the last auction held in June-July this year, which generated a promise of Rs.67 crore against initial anticipation of Rs.40 crore, is being cited by some for going ahead with a fresh round of auctions.
Loans
During that e-bidding, the Housing and Urban Development Corporation (HUDCO) and ICICI had come forward to offer loans to prospective buyers at concessional rates.
A total of 513 bids were received by the Hyderabad Municipal Development Authority and almost 50 per cent of the 229 plots that went under hammer at Miyapur, Ramachandrapuram and Nallagandla among others locations were picked up.
Though the response at that time was seen as revival of interest in property matters, the same did not last long and real estate again found the going rather sedate.
Not much choice
Officials describe their present state of affairs in terms of finances as dismal and not being left with many choices of staging a revival, they might go ahead with the auctioning of plots hoping to evoke a positive response among buyers.
These auctions could be through e-bidding for leftover plots besides some new layouts.
