Day after flop show, GMADA auction fetches Rs 62 crore | chandigarh | Hindustan Times
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Day after flop show, GMADA auction fetches Rs 62 crore

A day after its bid to sell residential plots turned out to be a damp squib, Greater Mohali Area Development Authority earned about Rs 62 crore on Friday by auctioning 18 commercial sites, indicating that smaller and reasonably priced plots were in demand.

chandigarh Updated: Nov 03, 2012 00:18 IST
Shailee Dogra

A day after its bid to sell residential plots turned out to be a damp squib, Greater Mohali Area Development Authority earned about Rs 62 crore on Friday by auctioning 18 commercial sites, indicating that smaller and reasonably priced plots were in demand.

The real estate rates are expected to increase in SAS Nagar, as evident from GMADA auction of commercial properties. An SCO in Sector 61 fetched the highest bid of Rs 6.20 crore, as compared to Rs 5.94 crore in the last auction in November 2011.

Friday's auction saw increased participation of investors from the town, though there were investors from Chandigarh as well, perhaps eager to buy properties outside the union territory owing to high prices as well as tight payment schedules.

"The response to auction of commercial properties is better than for residential plots. The positive sentiments prevailing in the real estate sector indicate that buyers are more inclined towards smaller plots. The realty sector is on the revival path and this is a good omen," said AK Sinha, chief administrator of GMADA.

"The commercial properties usually evoke good response as many investors from Chandigarh are looking for buying options outside UT owing to high prices and rentals there. The SAS Nagar real estate market in new sectors is getting a good response in terms of buyers. Chandigarh and Panchkula have seen consistent growth. But now SAS Nagar is emerging as the new destination in terms of investment in commercial properties. High rentals in Chandigarh are also contributing to growth of commercial properties market in this town, which is expected to keep appreciating," said Hardish Sharma, a property consultant from Chandigarh.

"During the auction, location advantage of plots played a key role. The reserve price was in consonance with the market rate. Commercial properties market is definitely witnessing a boom, as indicated by the auction results. Investors are looking for good returns in anticipation of foreign direct investments," said ID Singh, adviser, Mohali property consultants association.

GMADA auctions at glance

*GMADA sold 18 of the total 47 sites on block. In November 2011, GMADA had sold 42 of the total 61 sites through auction. In 2010, out of 53 sites put up for auction, only 12 commercial sites were sold. In 2009, only 17 of the 84 commercial sites were sold
*SCO in Sector 61 fetched Rs 6.20 crore against a reserve price of Rs 3.35 crore. Auction in November 2011 saw an SCO site in Sector 70 fetching Rs 5.94 crore. During auction in 2010, an SCO site in Sector 70 fetched the highest Rs 5.41 crore. In 2009, highest price for an SCO site in Sector 71 was Rs 6.5 crore.

Bids offered for SCOs in various sector

SCO sites in Sector 53 highest bid
16 Rs 3.79 crore
17 Rs 3.79 crore
18 Rs 3.81 crore

SCO sites in Sector 61 highest bid
105 Rs 4.94 crore
108 Rs 6.20 crore

SCO sites in Sector 65 (bulk market) highest bid
409 Rs 5.70 crore
410 Rs 5.97 crore

Single-storey shop sites in Sector 60 highest bid
74 Rs 1.45 crore

Single-storey shop sites in Sector 60 highest bid
67C Rs 1.85 crore
69 Rs 1.52 crore
70 Rs 1.61crore
71 Rs 1.65 crore
72 Rs 1.62 crore

Single-storey shop in Sector 63 highest bid
86 Rs 82 lakh
87 Rs 84 lakh
88 Rs 83.50 lakh
89 Rs 83.50 lakh
92 Rs 1.05 crore