HMDA banking on land auction to mobilise funds for pending projects
HMDA is auctioning 90 plots in Ranga Reddy and Medchal-Malkajgiri districts to raise funds for pending projects. Officials are hopeful of good returns but concerns persist after the pre-bid meeting drew poor response, reflecting a sluggish real estate market.
HYDERABAD: The Hyderabad Metropolitan Development Authority (HMDA) is banking on 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 nearly 90 plots in Rangareddy and Medchal-Malkajgiri districts on Tuesday. The plots in Turkayamjal and Bachupally are expected to fetch higher returns given their proximity to major commercial and residential projects.
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 inquiries for those in Bachupally, causing unease among the officials.
