Chandigarh estate department to auction properties by year end
The department had conducted its last auction in November 2019Updated: Oct 24, 2020, 23:15 IST
In line with the UT administration’s emphasis on monetising assets in the wake of Covid-induced revenue shortfall, the UT estate office is planning to auction off residential and commercial properties by the end of the year.
The department had conducted its last auction in November 2019; all residential properties on offer were sold, but there were no takers for commercial and industrial plots.
“We have started preparing a list and have zeroed down on 10 residential properties. Last year’s commercial and industrial plots will also be put on offer, in addition to new plots,” said a senior UT official, wishing not to be named. Around 15 to 20 commercial and industrial plots are expected to be put on auction.
Keeping in mind the real estate market scenario and the economic slowdown, the estate office is being cautious with any sharp increase in last year’s reserve and auction prices. “The final list and reserve prices of the properties will be decided after the approval of the UT administration. Though last year the residential properties had received a tremendous response, this year, the market situation is totally different and reserve prices will be set with this in mind,” the official added.
Last year, the estate department had generated a revenue of nearly ₹44 crore from the auction of 11 residential properties, whose total reserve price was around ₹27 crore. All of these properties were freehold—a 1,014-square yard (about 2 kanal) plot in Sector 33 had fetched ₹15.3 crore against a reserve price of ₹7.53 crore; a built-up house on 4-marla plot in Sector 32A had gone for ₹1.68 crore against a reserve price of ₹1 crore. The remaining plots, priced between ₹1.25 crore and ₹7.53 crore, were in sectors 33, 35, 37, 38, and 40.
Commercial properties, however, couldn’t fetch even a single buyer as all of them were leasehold properties. The estate office department had then requested the administration to consider converting them to freehold.
Meanwhile, the Chandigarh Housing Board is also planning to offer more than 200 residential and commercial properties for auction by December-end. CHB had failed to find any taker for its properties last year.