No takers for DDA plots
It is not only private developers but even government agencies that are feeling the pinch of the economic downturn.
The Delhi Development Authority (DDA) — the largest landholder in the city — has failed to sell a majority of its commercial plots that it put on auction.
For instance, in the last such attempt that was held on March this year, DDA had invited tenders to sell 108 commercial plots across the city. It failed to receive bids for even a single plot.
Of these, while 97 were freehold plots for setting up shopping centres and commercial complexes, nine were plots for setting up multi-level parking and two were hotel plots.
Similarly, the agency had invited tenders for auctioning 54 freehold commercial plots in October 2008. Of these it managed to receive bids for just three plots.
Senior DDA officials have blamed the poor response to the economic downturn and the slump in the realty market.
“The realty market is already down. In such a scenario, who will come to buy commercial plots?” said a DDA official who did not want to be named.
Officials also blamed the high reserve price for DDA’s failure to find takers for its commercial plots.
In fact, after failing to sell even a single plot in the auction that took place in March, DDA has written to the Union Urban Development Ministry to reduce the reserve price of commercial plots. “We are yet to hear from them,” an official said.
The poor response to auction of commercial plots in the last nine months is a far cry from 2006 and 2007 when DDA auctions had received a warm response. In one of its record land deals, DDA had auctioned an 11,619 square metre Dwarka commercial plot for a whopping Rs 266 crore.