ISLAMABAD, May 30, 2011 : Enthusiasm of bidders at the auction of residential and commercial plots by the Capital Development Authority on Monday belied the talk of a depressed real estate market in Islamabad.
Not only more bidders turned up than did at the last such auction held in December, the Rs358.2 million that CDA received for the 23 residential plots auctioned on Monday reflected an upward trend in market prices.
Higher proceeds can be expected when commercial plots are put under the hammer on Tuesday.
It was observed that the residential plots in Sector F-11, G-10, G-11 and D-12 fetched a price of Rs4,000 to Rs5,000 per square yard.
“This time, a plot measuring 311 square yard in Sector G-11 was auctioned at the rate of Rs45,000 per square yard against Rs35,000 in the last auction,” said CDA spokesman Ramzan Sajid.
He said 500 square yard plot in F-11 was sold at the rate of Rs55,000 per square yard which was the highest rate in all previous auctions of residential plots since 2008.
Similarly, a 320 square yard plot in Sector D-12 was auctioned for over Rs10 million against the previous highest price of Rs8 million.
With this auction before the annual budget 2011-12, the cash-starved CDA is making another attempt to generate funds by selling its land to feed up at least ongoing uplift schemes.
For development activities, the CDA mainly depends on the income from selling land but due to the prevailing recession in real estate market the city managers could not fetch the required funds during the last three or four auction of plots.
As a result, many ongoing uplift projects were stopped by the contractors af ter the civic body failed to pay them their dues.
On the first day of the auction, 23 residential plots were offered for bidding at Aabpara Community Centre.
The CDA offered 10 plots in Sector F11/1 and F-11/2. Of these, a plot measuring 500 square yard received the highest bid of Rs55,000 per square yard. Whereas a plot measuring 400 square yard got the lowest bid at the rate of Rs40,500 per sq yard in F-11.
The authority also offered nine plots in G-10/2, out of which one measuring 233.33 sq-yard received the highest bid of Rs47,000 per sq yard, whereas another measuring 311 sqyard received the lowest bid of Rs37,500 per sq yard.
Two plots measuring 355 sq yard each were offered for auction in D-12/3 and one each in F-10/2 and G-10/3 out of which the plot No 224 in G-10/3 got the highest bid of Rs50, 000 per sq yard.