DDA to Cut Reserve Price of Plots

April 9, 2007	(Be the first to rate this story!)  Loading ...
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In an effort to encourage buyers for its hotel plots, Delhi Development Authority (DDA) has decided to cut the reserve piece of unsold plots. The authority has scheduled the auction for the last week of April.

However, nothing has been finalized yet as the details are still being worked out. DDA has set the reserve price depending on the past sales which had shown an excellent response. The policy did not get the same track this time, says a senior DDA official.

The authority had bagged the handsome price of Rs 1.25 lakh per sq metre and plots sold for three times the reserve price.  But it is an entirely a gloomy situation in the current year. Of seven hotel plots put for the auction on March 22, only two was able to attract the buyers. These plots were approximately 3,000 sq. metre in size.

Among those that could not woo the takers were the plots at Dwarka. Their reserve price was set to be 77,000 per sq metre. This led the authority to decide to bring the reserve price down by 10 per cent. In addition, 11 smaller plots, approximately 1,000 to 1,500 square metre in size, are next in the line to be put for auction. These plots are situated in Harinagar, Vivek Vihar, Anand Vihar, and Patparganj.

Contrary to this, Noida Development Authority and HUDA have performed really well in drawing interests from foreign players. Indeed, Gurgaon, the cyber city of Haryana, has created a record of sorts with a hotel plot sold at 1.7 lakh per sq metre.

News Published Under:   Delhi |