The authority has put two dozen such properties on its auction list this month.
Amid process of optimizing its reserved prices for land auction, the Jaipur Development Authority continues to auction its properties. The anticipation of a correction in the reserved prices has not come to deter the sale. The authority has put two dozen such properties on its auction list this month. “We are able to sell one in every four properties put on auction and there has not been any recent change in the trend,” says a senior JDA officer.
According to officials, JDA was able to generate a revenue of nearly Rs350 crore last year from the auction of its properties. The revenue figures though remain impressive in consideration of the slowdown in the real estate market, it remains less than the previous records of JDA. It has also been insufficient to meet the expected JDA targets.
The authority is thus contemplating to cut margins and increase turnover by lowering the reserved prices. The JDA has a long list of residential, commercial and mixed-use properties in its inventories and many of these have remained unsold despite being put to auction. The authority has initiated the process for review of rates following instructions made during a recent review of the department by urban development minister. However, those waiting to count on the benefit are speculative over the scheduled auctions at JDA. Many of the properties at the present auction list are on prime locations such as Lal Kothi and Chitrakoot scheme. Despite on a base reserved price of Rs 70,000 per square meter, these properties remain attractive for several investors.
JDA officials, meanwhile, do not find the situation contradictory. They claim that the auctions are part of a regular process and it can not be interrupted for correction of reserved prices. This though continues to come as a difficulty for investors fearing that any correction in reserved prices in their area might come to impact their investment.
The Figures
Revenue figures though remain impressive in consideration of the slowdown in the real estate market, it remains less than the previous records of JDA. It has also been insufficient to meet the expected JDA targets.
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