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HUDA mulls changing its track with regard to land auctions
Posted by Srini Uppala | December 26, 2007 | 262 views
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Loading ...The Hyderabad Urban Development Authority is thinking of changing its tack with regard to land auctions.
With the slump in the real estate still continuing and depreciation of dollar having brought down the demand for commercial space for IT units, the response to the recent auctions by HUDA has been lukewarm, be it the auction for ‘Pentagon’ project at Miyapur held in September or the Empire project at Kokapet on December 20; the only exception was Rockdale Greens near Hi-Tech city.
The response was termed lukewarm not because HUDA did not get a good price for its plots in the range of three acres to 22 acres in Pentagon project or a single plot of 8.02 acres near Hi-Tech city, or the recent 25 acres plots under Empire at Kokapet but in terms of plots that actually got sold.
Pentagon project
Under the Pentagon project, out of eight plots of different extent, only the biggest plot of 22 acres was bid for Rs.7.27 crore per acre, just Rs.1 lakh more than the upset price.
The single plot of 8.02 acres offered under The Rockdale Green was taken for Rs.10.02 crore per acre against the upset price of Rs. 8.7 crore per acre as it was closer to Hi Tech city.
For the recent Empire project at Kokapet, HUDA’s upset price for four 25- acre premium plots was Rs.12 crore per acre and only one got sold at Rs.12.01 crore per acre.
HUDA after its ‘Empire’ auctions got discreet inquiries from bidders that bigger plots would become viable rather than 25 acre plots at Kokapur. .
Viability
While 25 acres is minimum for an IT SEZ, in the present scenario not many IT units are keen on renting out premises. Thus bidders feel bigger plots with multipurpose use beside IT would become viable. It is learnt that rather than buying 25 acre plots, inquiries have been for selling the remaining three plots at ‘Empire’ as 75-acre single plot.
“HUDA has to take a decision keeping the current scenario of preference for bigger plots and balance it with our resource requirement. The options would be discussed in the board meeting on December 28 to take a decision on auction of unsold plots,” says HUDA Vice-Chairman Jayesh Ranjan.
SOURCES:
The Hindu
Topics: Govt In Action, Real Estate |
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