The Greater Mohali Area Development Authority (GMADA) received a cold response during the year’s last auction offering 30 commercial sites and two school sites, of which only nine were sold.
Even after the property rates were slashed by about 10-20%, there were no takers for the two school sites. Besides, during the auction of six booths and three SCOs, a revenue of around Rs 12.81 crore was generated.
“Investors are keen on buying smaller properties as those who have already invested in properties are not getting desired returns, so they feel making further investment not viable, ”said Rakesh Kumar, a city-based property dealer, who was present but did not participate in the bid, saying he was “only there to judge the mood of the market”.
“Though GMADA had reduced the reserve price to make it competitive, the cashstrapped market, undergoing slowdown, is not ready to revive. The growth is stagnant and there is no big ticket project coming up, making the city non-conducive for investment, ”said Randhir Singh, a businessman.
“After opening up of the international airport, the city had brought in positive sentiments in the real estate market, but with no international flights operating from here, investors are now shying away from pumping in money, ”opined Prem Nanda, a real estate consultant based in Panchkula.
Generating the revenue of Rs 12.81 crore, GMADA termed the auction “successful”. “No doubt the market is undergoing a global slowdown, but one can’t deny that there is positive sentiment in the market, which is the reason we were able to sell nine properties, ”said Sukhjit Pal Singh, additional chief administrator, GMADA.