Sealing push to property prices
Court-driven crackdown against illegal commercial establishments sends prices of authorised commercial spaces skyrocketing, reports Moushumi Das Gupta.india Updated: Dec 08, 2006 02:58 IST
The court-driven crackdown against illegal commercial establishments has sent prices of authorised commercial spaces in the capital skyrocketing.
Sample this. The Delhi Development Authority (DDA) on Thursday sold a 7232 square metre commercial plot in the Rohini twin district centre, sector 10 for Rs 231 crore. At Rs 1.25 lakh per square metre, DDA officials said, it was one of the costliest land deals for a commercial plot in Delhi.
Earlier, DDA had sold a 315 hectare plot in Vasant Kunj for a mall project for Rs 1,290 crore.
The reserve price of the Rohini plot which was bought by Parsavnath Developers was Rs 87.17 crore. Besides, another 5610 square metre plot in B-block community centre, Shalimar Bagh went for Rs 101 crore. The reserve price of this plot was Rs 54.91 crore.
DDA raked in a total of Rs 637 crore by selling nine of the fifteen plots which were put on auction.
Real estate consultants are not surprised. They say the boom was expected in the aftermath of the sealing drive against unauthorized shops that has been going on in the city for the past several months.
Sanjay Verma, joint managing director of real estate firm Cushman and Wakefield said, “It was inevitable. There is very limited legalized commercial space available in the Capital. And after the recent crackdown on unauthorized shop it was but natural that any commercial plot with a legitimate tag would sell for a premium.”
The view is echoed by Deepak Bhavsar, national head for consulting, Trammell Crow Meghraj. “The premium rate that this particular plot at Rohini has fetched is not unrealistic. Lot of shop owners whose shops were sealed in the last few months were looking for alternate authorized space to shift. The catchment in and around Rohini is huge and developers would not mind paying a premium for a legitimate plot,” said Bhavsar.
Of the fifteen plots that were put up for auction, DDA managed to sell nine. Of these, four are in Rohini, two in Shalimar Bagh, one each in Dwarka, Narela and Mandawali. However, it did not get any response for its plots in Jasola, Nehru Vihar and Mayur Place. The agency will auction 18 more commercial plots on Friday.
Meanwhile, irked over DDA’s drive to auction commercial plots, city traders representing the Confederation of all India Traders have said that they will demonstrate at DDA headquarters on Friday demanding a one-year moratorium on the auction process.