Positive response to the auction of land by the Hyderabad Metropolitan Development Authority has brought some relief to the cash-starved planning body and has also boosted the real estate sector in the city which is going through a severe slump. HMDA got a whopping Rs 125 crore through its land auction, Rs 5 crore more than it expected.
For more than a year now, HMDA has been trying to dispose of the land, which includes a big plot at Nandagiri Hills. But due to the poor financial climate, there had been no buyers. The planning body tried to provide some incentives for buyers and it seems to have worked. Buyer-friendly transaction modes like giving more time to pay the entire amount, reducing the upset price and other measures have brought in the buyers.
When the bids for the 42 plots on auction were opened, almost all the plots, including the big Nandagiri Hills plot, were sold. Only six are unsold. The 4.7 acre plot at Nandagiri Hills alone fetched Rs 84.74 crore, at Rs 18.05 crore per acre, as against the upset reserve price of Rs 18 crore. There were two prospective buyers for the plot, and according to HMDA sources, the real estate company — Net Ventures — quoted the highest amount. The plots at Gopanpally were the most sought after.