In a slight improvement over the previous cold response to its auctions, the Greater Mohali Area Development Authority (GMADA) sold nine out of 22 that were auctioned in the newer sectors in the vicinity of the Chandigarh international airport on Wednesday. In the previous auction held in February, GMADA could sell only three properties of 22 that had been put for auction.
GMADA authorities have expressed satisfaction on the sale of nine sites that includes a nursing site in Sector 69; a school site in IT City, Sector 82, a residential site in Sector 67, along with six commercial sites including four SCOs and two booths. The school site in IT City, Sector 82, carrying a reserve price of Rs 32. 52 crore was brought by Nextgen Ventures through Sunny Bansal at a price of Rs 32.55 crore.
“Selling nine sites and generating a revenue of Rs 54.2 crore is a good response. We were able to sense the market sentiment and had kept the demand of the investors in mind,” said GMADA additional chief administrator Sukhjeet Pal Singh.
The decrease in the collector rate five times in two years has also helped, claim experts.
Property consultants in SAS Nagar disagree with GMADA claiming that in Wednesday’s auction it failed to cash in on the reviving property market due to high reserve prices.
“The market is already on a revival path, but GMADA failed to cash in on it owing to its high reserve price. There is demand for residential properties and yet GMADA only sells one property of five. The only reason is high reserve price,” said ID Singh, a property consultant in SAS Nagar.
“There is demand for commercial properties and GMADA was able to sell six properties of 15, a good sign. To attract the local investor the reserve price must be lowered. The rates of properties need to be revised. The buyer has to be attracted to the property,” added Shalinder Anand, chairperson, Mohali Property Consultants Association.