After a series of failed auctions of commercial and residential sites, the Greater Mohali Area Development Authority (GMADA) will put up 23 commercial, residential and institutional sites for auction on February 5. The reserve rates of the sites have been slashed by up to 20 per cent. GMADA officials said the move was aimed at attracting buyers.
Sources said GMADA would put up a primary school site in Sector 64 and Nursing Home sites in Sector 67, 69 and Aero City for auction on February 5. Apart from the bigger sites, GMADA will also put four booths in Sector 53 and 56, an SCF in Sector 71 and 13 residential sites in Sectors 61, 63, 64 and 68. All the sites will be auctioned on February 5.
Sources in GMADA said the reserve prices of some sites including the bigger sites such as nursing homes had been slashed by 10 to 20 per cent to attract buyers. The sources also added that GMADA officials were concerned over the poor response to the auctions held last year and decided to slash the prices.
Former chairman of Mohali Property Consultants Association (MPCA) Shailander Anand said it was a “good move” by GMADA but added that he also said the reserve prices were still high and the auction could again fail to get good response.
The rebate, according to Anand, is not enough to attract buyers. He maintained that it is not going to change much and GMADA should rethink its policy of holding the auction as the real estate sector was witnessing a slump.
GMADA also slashed the reserve rates of some commercial sites last month ahead of the auction which was held on December 29.
Though GMADA failed to attract the buyers and managed to sale only nine sites out of 32 put for auction. In November last year, the auction also got a poor response as GMADA only sold six sites out of 20.