Riding on realty boom, HMDA eyes Rs. 390-cr bounty

Focussing on disposing of several plots in different layouts that had failed to get bidders in the past auctions, HMDA has also decided to go for auctions.

By Author  |  Published: 27th Oct 2016  8:30 pm
HMDA
Representational image

Hyderabad: With the real estate sector in the city appearing to be back on track, the cash-strapped Hyderabad Metropolitan Development Authority (HMDA) is keen on auctioning plots to fill its coffers. If the proposals materialise, the planning body will be richer by at least Rs.390 crore.

While focussing on disposing of several plots in different layouts that had failed to get bidders in the past auctions, HMDA has also decided to go for auctions in fresh layouts.

Accordingly, the authorities have identified land parcels spread over 2 lakh square yards around the city. Efforts were being made to submit a report to the government and seek clearance to go for auctions.

When the real estate boom had peaked and property prices had skyrocketed, the HMDA had its coffers overflowing from plot auctions. In fact, it had extended financial support to various projects taken up by the then government. In 2007-08 itself, officials concede, the HMDA had generated close to Rs.2,000 crore through auctions.

However, after the property market slumped owing to various reasons, repeated efforts to auction plots failed and many were left unsold.

Given the renewed interest of buyers to invest in the realty sector, HMDA officials hope to attract bidders and raise good revenues. The authorities have identified plots in Vanasthalipuram, Saroornagar, Madhapur, Tellapur and Nallagandla which could go under the hammer. Officials on condition of anonymity said studies were carried out to ascertain the demand for plots in various parts of the city.

Depending on the area and demand, the market value could range between Rs.23,000 and Rs.25,000 per square yard, an official said. “Going by the market values, we hope to generate over Rs.390 crore,” he added.

Major areas and plot availability

Vanasthalipuram                          5 plots measuring 1,500 sq yards each
Saroornagar                                  4 plots measuring 1,600 sq yards each
Madhapur                                      6 plots measuring 4,372 sq yards each
Tellapur                                          3 plots measuring 1,000 sq yards each
Nallagandla                                   2 plots measuring 600 sq yards each
Chandanagar                                5 plots measuring 1,000 sq yards each
Nandagiri Hills                              1 plot measuring 300 sq yards
Nadargul                                        surplus land of 47,840 square yards
Gift deed lands                             1.80 lakh square yards