GMADA auction fails to attract investors | chandigarh | Hindustan Times
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GMADA auction fails to attract investors

With local investors shying away from premium Purab Apartments scheme floated by Greater Mohali Area Development Authority (GMADA) terming them as 'unviable', outsiders especially property dealers from Haryana dominated the draw of lots.

chandigarh Updated: Mar 21, 2012 19:23 IST
Shailee Dogra

With local investors shying away from premium Purab Apartments scheme floated by Greater Mohali Area Development Authority (GMADA) terming them as 'unviable', outsiders especially property dealers from Haryana dominated the draw of lots.

GMADA eyeing vertical growth in wake of high acquisition costs of land and shrinking spaces, had offered 4,500 freehold apartments in December, last year. The authority, in response to the scheme, had received only 6,500 applications.

Enthusiasm among buyers in the area was so low that in some of the categories, the authorities did not even receive a single entry, while in some reserved categories the number of applications was barely equal to the number of allotments.

Though GMADA officials claim that the speculators have been kept out, real estate dealers in and around the tricity claim that the ban on selling apartments has proved to be a major deterrent apart from the high prices.

"The apartments's market is niche and looking at shrinking open spaces, the demand for apartments will increase in the coming years. I had filed around five applications in the name of my close relatives, out of which three have been approved," said Anil Kumar, who hails from Bhiwani in Haryana.

GMADA officials maintained that the scheme may not find favour with investors, but it did not mean that the apartments do not have takers.

"The city has a growing number of young professionals and the scheme is meant for people who are looking for houses. People have been coming in large numbers to check their names in the final list. We have allotted all the apartments, and for us this was a good venture," said Parveen Kumar Thind, GMADA's additional chief administrator.

GMADA for the first time had decided that before handing over possession, every successful allottee would have to become a member of a cooperative society. The society would be responsible for administration and management of property and maintenance.

The allotments will be on free-hold basis and the possession of apartment will be handed over to the allottee after completion of development works at site in a period of 36 months from the date of issuance of letter of intent.

In order to control speculations, GMADA said there should be a bar on sale of apartments for two years after handing over possession or five years from date of issuance of letter of intent, whichever was earlier.

The draw for 1,800 BHK apartments was held. GMADA received around 3,255 applications for which draw of lots was held. 15,412 applicants were alloted in the general category, while 259 apartments were allotted in the reserved category.