Realty market gloom casts shadow over GMADA e-auction

In what was indicative of the gloom in the realty market, the recent e-auction of Greater Mohali Area Development Authority (GMADA) within the municipal corporation (MC) limits, turned out to be a flop show like the previous four auctions, with none of its 14 residential properties, two hotel sites and 15 booths finding buyers.

Previous auctions held on the first 11 days of every month for the past four months have flopped too.

IT industrial site sold

The story outside MC limits was different as out of seven IT industrial sites of 0.5 acres to 1 acres, one site was sold for ₹3.81 crore against the reserve price ₹3.77 crore in Sector 101 – Alpha city, to Caindus system Private Limited, Mohali.

Of the two petrol pump sites in Aerocity and Medicity, the former, sized about 1 acre, was sold for ₹18.65 crore to Indian Oil Corporation Limited against the reserve price of ₹17.77 crore.

Also, out of 30 convenience shops in sectors 117, 118 and 119, seven were sold for ₹1.5 crore.

In the e-auction that concluded on October 11, there were no takers for 14  residential sites in sectors 56, 59,60, 61, 63 to 65, 68,  71, 77-80, and Eco City-1. The plots ranging from 250 square yard to 500 square yard had reserve prices ranging from ₹33,000 per square yard to ₹81,000 per square yard, which means that the cost of a 500 square yard plot in Sector 70 came to around ₹4.4 crore.

Fifteen booths of 18.86 square metres to 38.81 metres, located in sectors 54, 56, 59 to 61, 64,65, 68 and 71, too remained unsold . Their reserve prices ranged from ₹2.62 lakh per square metres to ₹5.69 lakh.

Of the two unsold hotel sites located in Sector 66-B near Airport Road, one is of 2 acres with a reserve price of ₹25.69 crore and the other of around 4 acres has reserve price of ₹50.94 crore.

“We were  able to sell two major sites and hope that in the coming month the response will be positive,” said Sanjeev Kumar, GMADA estate officer.

‘People have better options’

Attributing reasons for the poor response to the e-auction to “complete recession in the market,” Shalinder Anand, former chairman of Mohali Property Consultant   Association said, “people today have so many options when it comes to buying properties in the city, that too at cheaper rates.”

He felt the reserve price of GMADA was very high as the  same property in the open market was available for a lower price tag.

“ I feel that there should be open auction instead of e-auction, as there will be healthy competition and GMADA can earn more,” he said.