The Greater Area Development Authority (GMADA) will auction 22 properties in the newer sectors in the vicinity of the Chandigarh international airport on June 22.
The move is being seen as an attempt to revive the flagging real estate market with a school site, a nursing home site and a commercial area going under the hammer.
GMADA aims to make the most of the auction as collector rates in the area have only been recently cut by 10-15%. However, the market sees the auction as a mixed bag.
“The property market is undergoing a slowdown. The rates at which GMADA is selling the properties are way higher than market rates. The investor is looking for property, but at lower rates,” said SS Walia, president, Mohali Property Consultants Association.
“The properties that will be auctioned are in sectors that are still being developed. Here, GMADA should provide the properties at a lower price than the market. Residential property is in demand, but at an economical rate,” said Amandeep Gulati, a property consultant.
NO HEIGHT LIMIT; BUT NOC OF AAI REQUIRED
Even as a nursing home site and a commercial chunk is for auction and they are close to the airport, no height restriction on the buildings has been imposed.
However, buyers will need to submit a no-objection certificate (NOC) from the Airports Authority of India (AAI).
NO SUB-DIVISION OR CLU WILL BE ALLOWED
GMADA has also clarified that no subdivision of the sites or change in land use for the auctioned sites, especially for the nursing home, school and commercial chunk.
2% TO BE PAID TOWARDS CANCER FUND
The successful bidders will have to pay 2% extra amount of the final bid towards Punjab State Cancer and Drug Addiction Treatment Infrastructure fund at the fall of the hammer.
CONSTRUCTION IN 3 YRS
Successful bidders will be expected to complete construction within three years of handing over the physical possession of the site.
Previous auctions by GMADA had drawn poor response
February 2016: GMADA could sell only three of 22 properties auctioned, including a nursing site in Aerocity and two residential sites at Sector 68 in SAS Nagar generating revenue of Rs 9.36 crore
December 2015: Only nine of the 30 sites generating a revenue of Rs 12.8 crore
November 2015: Six of 20 residential properties could be auctioned generating revenue of Rs 16.5 crore
September 2015: Three properties of 12 sites sold for Rs 170 crore
Properties under hammer
• Commercial chunk over 5 acres in Aerocity
• School site in Sector 82,
• IT City
• Nursing home in Sector 69
• 14 commercial sites, including nine SCO, five booths
• Five residential plots