GMADA auction turns out to be flop show
There was not even a single bidder for residential plots and only 12 commercial sites found buyers
Apr 11, 2015
Source : The Times of India


MOHALI: Auction of the Greater Mohali Area Development Authority (GMADA) on Friday once again turned out to be a flop show as there was not even a single bidder for residential plots and only 12 commercial sites found buyers, including a primary school, which went for Rs 5 crore against the reserve price of Rs 3.52 crore.

The much-hyped real estate failed another test as the open auction of total of 32 sites drew a tepid response. However, GMADA got Rs 22.22 crore.

Out of seven booths in various locations of the town, six were sold. A Sector 67 booth drew the highest amount of Rs 90 lakh against the reserve price of Rs 70.80 lakh. Out of ten SCOs (shop-cum-offices), only three attained buyers. Two-single storey SCOs were sold in sectors 84 and 94. The hopes of Mohali to get a cinema theatre too vanished as there were no takers for the site, the reserve price of which was kept at Rs 15 crore.

Property expert Guranchal Singh, a Chandigarh-based dealer, said, "There is already a slump in the real estate industry. Property rates were high for three years and now they are declining, especially due to the very high interest rates on home loans. The second reason is the slow growth of economy. Now, the condition is such that dealers are offering to sell their property, but there are no buyers." He suggested that reserve prices should be kept low to attract bidders.

J P Singh, president of a traders' association and a property dealer in Mohali, too echoed similar views. "The reserve price has been kept very high, the primary reason behind buyers staying away."

A GMADA official said, "The reserve price is decided as per criteria. We are not personally responsible for deciding the reserve price. We are satisfied with the overall result."

Latest Realty News

Apr 11, 2015
PUNE: The standing committee of Pune Municipal Corporation (PMC) approved a proposal to provide a discount in premium charges for buildings that follow eco-housing norms
Apr 11, 2015
NAGPUR: The BJP-led ruling alliance at the Nagpur Municipal Corporation (NMC) stayed the steep hike on various types of charges applicable for sanctioning the plans of building and layout/plots
Apr 11, 2015
New Delhi: National Green Tribunal (NGT) issued directions to the governments of Delhi, Haryana and UP to stop any construction in NCR, which violates its rules or 2010 guidelines of the MOEF
Apr 11, 2015
New Delhi: Arun Jaitley defined GIFT city as a “role model” for the development of future smart cities in India
Apr 11, 2015
HYDERABAD: Real estate developers have welcomed the Union Cabinet’s approval of the Real Estate Regulatory and Development Bill
Apr 11, 2015
New Delhi: Aadhar Housing Finance Limited (Aadhar) will expand its operations in four more states, including Maharashtra and Uttarakhand
Apr 11, 2015
Mumbai: Stable rate of new office space addition; occupiers increasingly opting for bespoke solutions and committing to under construction projects
Apr 11, 2015
NOIDA: For thousands of buyers who invested in housing projects in Noida Extension, the past five years have been full of trepidation
Apr 11, 2015
MUMBAI: The country's largest housing finance company HDFC Limited has brought down its lending rate by 20 basis points with effect from April 13
Apr 10, 2015
Gurgaon: Both builders and homebuyers feel there is a lot to feel upbeat about the amended Real Estate Regulation and Development Bill 2013, but they also see a scope for more clarity

Latest Realty News Of State

Realty Talk's