NO Buyers for Hotel Plots Auctioned by DDA

May 16, 2007	(2 votes, average: 3.5 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

DDA has not been able to woo a single buyer for any of nine hotel plots put for sale on Tuesday. Hotel developers are showing the least interest and finding cites to be located at unattractive places. The auction concluded a two day effort by the land holder to sell 19 plots, of which only three were sold.

What is putting off the prospective buyers from buying the plots is DDA’s poor choice of location, according to a poll of hoteliers. Considering the same, some of the plots were being priced as low as Rs 14.15 crore for about a third of an acre, or about Rs 33 crore per acre.

The plots are located in the areas including Rohini, Dwarka, and Mayur Vihar and in other secondary areas of Delhi. The authority’s failure to sell the hotel plots has raised questions regarding the government’s ability to accomplish its target of 30,000 additional rooms in the Capital by 2010. This seems to have discouraged the tourism ministry which is completely counting on DDA and other hotel agencies in the area to make land available for at least 26,780 hotels by the appointed time.

A downside to the real estate boom is also one of major reasons contributing to keep property investors away. Since, Indian real estate has been falling; there is a drop in the number of land speculators making investments in hotel plots in the Delhi area.

The authority is working on strategies to encourage buyers for hotel plots. DDA has earlier raked in high prices for the plots such as a leading property developer, Emmar-MGF land Pvt. Ltd. bought a five acre plot in South Delhi for a whopping Rs 338 crore.

They say every cloud has a silver lining. No wonder there is a blessing in disguise in the current real estate scenario as it is leading to create a healthier market. Several property developers are there who still consider buying at auction an apt way to make savings.

However, the hoteliers are struck on the same issues – the locations, says Vimal Singh, managing director of the South Asia joint venture of Golden Tulip Hospitality Group. The group has recently introduced its mid range and luxury brands in India. If there are some good hotel plots with DDA, then the reserve prices are too high, which is another factor depressing the property buyers.

News Published Under:   Delhi |

Comments