HMDA aims to generate Rs 500 crore through plot auctions
Hyderabad Metropolitan Development Authority hopes to raise Rs 500 crore through plot auctions in Turkayamjal and Bachupally to fund pending projects. Despite optimism over high returns, officials are worried about poor pre-bid response amid a sluggish real estate market
Hyderabad: The cash-starved Hyderabad Metropolitan Development Authority (HMDA) is aiming to generate about Rs 500 crore revenue from plot auctions to meet the growing demand for funds to execute pending projects. Several projects have been lined up over the past 18 months but could not take off due to financial constraints. To raise revenue, HMDA will auction the plots in Rangareddy and Medchal-Malkajgiri districts on Tuesday.
The 12 plots in Turkayamjal layout and 70 plots in Bachupally layout are expected to fetch higher returns given their proximity to major commercial and residential projects. While the upset price for Turkayamjal plots is fixed at Rs 65,000 per square yard, for Bachupally plots it is Rs 70,000 per square yard. The HMDA aims to generate about Rs 65,000 per square yard as average price in the auction.
The plots in Turkayamjal will go under the hammer on Wednesday and the ones in Bachupally will be auctioned on Thursday.
With the record-breaking prices secured in earlier auctions at Kokapet, officials are hopeful of good response. In Rangareddy, plots will be auctioned at Bairagiguda, Kokapet, Puppalaguda, Chandanagar, Bachupally, Bowrampet, Chengicherla and Suraram, covering a total of 35,875 square yards.
However, doubts are being raised over HMDA’s move given the sluggish real estate sector, which has yet to recover fully over the past two years. Real estate developers are also closely following the auction, seeing it as a pointer to the market’s direction.
Poor response to pre-bid meeting
HMDA officials are reportedly concerned after the pre-bid meeting saw poor participation. While there was some interest in the Turkayamjal plots, there were hardly any enquiries for those in Bachupally, causing unease among the officials.
