UT Estate Office gears up for Friday’s auction

As anticipation builds up for the auction of residential and commercial sites by the Estate Office on Friday,real estate experts are keeping a close watch on the prevailing market conditions.

Written by Express News Service | Chandigarh | Published:March 26, 2009 1:27 am

As anticipation builds up for the auction of residential and commercial sites by the Estate Office on Friday,real estate experts are keeping a close watch on the prevailing market conditions. Though not much of a revival is expected in the realty conditions as compared to the last auction,held on October 23,2008,the officials are hoping for a better response this time.

On Friday,the total number of sites to be auctioned would be 106. This includes 50 sites for residential use and 56 commercial properties. In the last auction,48 residential sites and 34 commercial were listed,of which only six commercial sites and 34 residential sites could be auctioned.

As the case last year,this time too the reserve price will be calculated as per the last auction’s reserve price plus a five per cent increase. Earlier,it was calculated on the basis of the average of the previous three auctions with a five per cent increase.

The changed rule will result in an increase in the reserve price from Rs 55,299 per square yard for residential plots to Rs 58,000. For commercial property,the increase would be Rs 3.20 lakh from Rs 3.18 lakh per square yard in the last auction.

The Administration collected Rs 95 crore in the last auction — Rs 79 crore by auctioning residential sites and Rs 16 crore from commercial sites. A five-marla plot in Sector 38 D was sold for Rs 83 lakh against a reserve price of Rs 41 lakh whereas two four-marla plots in Sector 42 B went for Rs 60.6 lakh each against a reserve price of Rs 32 lakh. A 10-marla plot in Sector 40-B fetched Rs 1.71 crore while a one-kanal plot was sold for Rs 4 crore against a reserve price of Rs 1.81 crore.

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