Indore: IDA to slash prices of unsold properties | indore | Hindustan Times
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Indore: IDA to slash prices of unsold properties

To convert non-performing assets into revenue resources, the Indore Development Authority (IDA) has decided to sell off unsold properties at cost price.

indore Updated: Mar 28, 2016 17:32 IST
Vinit
The IDA has more than 1,200 flats/row houses and commercial spaces spread across the city, which are lying unsold for the last couple of years.
The IDA has more than 1,200 flats/row houses and commercial spaces spread across the city, which are lying unsold for the last couple of years.(HT File Photo)

To convert non-performing assets into revenue resources, the Indore Development Authority (IDA) has decided to sell off unsold properties at cost price.

The IDA has more than 1,200 flats/row houses and commercial spaces spread across the city, which are lying unsold for the last couple of years, mainly due to uncompetitive pricing.

“We cannot sit on the unsold properties forever, so we have decided sell off the properties at construction cost,” said IDA chairman Shankar Lalwani.

The IDA has taken approval from the state government to revise the rates of the unsold properties, he said.

With the decision, it is expected that the cost of each unit will go down by at least 15-20%.

“Given the negative sentiments in real estate market, it is difficult to find buyer at current prices so we have decided to slash the prices to sell off the properties,”

“We are still calculating the price of the properties as prices vary depending on it is located, he added.

The revenue generated will be used for other development works and we have ambitious plans for development of the city in the next financial year, Lalwani told Hindustan Times.

He said city plans to build high-rise structures in Super Corridor to turn it into a financial hub, besides constructing flyovers in busy junctions to ease traffic congestion in the city.

“An amusement park on the lines of Essel World, a local bazaar on the lines of Deilh’s Palika bazaar is being planned for which we need money and we have to manage through the resources available with us,” he said.

For a 2 BHK apartment in Scheme No. 136 with 1140 square feet super built up area the price was fixed at Rs 31.20 lakh, similarly price of a 3 BHK flat with 1,560 square feet of super built up area was fixed at Rs 43.50 lakh. These rates may fall by 15-20 percent. “If the prices are still higher than what the private builders offer, the IDA has power to slash the rates again,” said Lalwani.

Divestment for development

The IDA has taken approval from the state government to revise the rates of the unsold properties

The IDA chairman said the decision has come amid the authority facing difficulties in finding buyers at current prices, given the negative sentiment in the market

For a 2 BHK apartment in Scheme No. 136 with 1140 square feet super built up area the price was fixed at Rs 31.20 lakh

Price of a 3 BHK flat with 1,560 square feet of super built up area was fixed at Rs 43.50 lakh.

The revenue generated will be used for other development works and we have ambitious plans for development of the city in the next financial year.