Hyderabad: The state government’s joy of getting Rs 29 crore per acre in the Hitec City area in the land auction conducted by TS Industrial Infrastructure Corporation on Thursday was short-lived as other areas in the city failed to attract buyers.
Builders blame the higher upset price fixed by the government for the poor response. This discouraged many from participating in the auction.
Still, not many takers for land in city
As many as 54 parcels of land were up for sale in the second phase, but only five parcels could be sold. While 113 acres was put up for sale, only 33 acres changed hands.
An upset price of Rs 1 lakh per sq. yard has been fixed for Bharani Layout, Jubilee Hills, Banjara Hills Road No.12, Nandagiri Hills and Banjara Hills Road No. 10. A lesser price, Rs 90,000 per sq. yard, has been fixed for HUDA Heights in Jubilee Hills and Rs 80,000 for plots at Road No. 12, Banjara Hills.
While fetching Rs 29 crore per acre is being projected as a real estate boom, builders say there is a long way to go and the real boom will be seen next year if the drought ends and good rainfall is recorded this year.
This was the second phase of auction here by the government, the first done in November last. In the first phase, the highest price quoted was Rs 29.2 crore per acre in Raidurg and the government aimed at breaking this record in the second phase. The highest bid this time was Rs 29 crore, which was quoted in Khanamet, a shade lower than the previous high.
Though 54 land parcels were put up for sale in April, auction was conducted for only 30 parcels. It emerged that some land disputes were pending visa-vis the remaining parcels. Even then, only five land parcels could find buyers.
The second phase of auction covered prime areas like Hitec City, Jubilee Hills, Banjara Hills etc spread over 170 acres. The government hoped to earn Rs 3,000 crore through auction, but got just Rs 200 crore. The unsold 15 parcels from the first phase were also included. These land parcels fall under residential, commercial, multi-use and commercial-cum-office zones.
“Normally, an auction succeeds if the upset price is fixed at the lower side. This will encourage more and more bidders to come in the auction. Since, these are government lands, there will be more demand. In the end, the government will get more than what it expected. But in this case, the government is prescribing a higher upset price, which discouraged bidders. There is no competition among bidders due to which there is poor response,” said Mr D. Rami Reddy, builder.
In the first phase, the government aimed at Rs 700 crore but got less than Rs 350 crore. It had put up 17 parcels of land in RR district and 10 parcels in Hyderabad for sale then, but bidders vied for lands only in RR district.
TSIIC managing director E.V. Narasimha Reddy said the land parcels removed from the auction due to technical issues.
“The outskirts are more preferred. This is because big land parcels are available which suit huge residential and commercial projects unlike in core areas,” Mr Reddy said.
