GMADA lowers auction reserve price

Greater Mohali Area Development Authority (GMADA) has lowered the reserve price of residential and commercial plots that will go under the hammer next month. On an average, the reserve prices of properties have been reduced by 10 to 15 per cent in all sectors where the sites are located. Though the exact date of the auction has not been finalised, about 74 commercial and 32 residential sites would be auctioned next month. The reserve price of a shop-cum-office (SCO) site in Sector 70 had been reduced to Rs 457 lakh from Rs 535 lakh (this reserve price was quoted during the February 2010 auction). Similarly, the reserve price of a booth in Sector 71 had been reduced to Rs 31.35 lakh from Rs 36.09 lakh (this was the reserve price during the February, 2010 auction). In case of a residential property, GMADA has reduced the reserve price of a kanal plot to Rs 40,000 per square yard from Rs 50,000 per square yard quoted during the last year’s auction. There were no takers for the residential sites due to the recessionary trend in the real estate sector. In last auction only 12 out of 45 commercial sites could be sold during the February, 2010 auction. Whereas in September, 2009 only 17 out of 69 commercial were sold as there were no takers for residential sites. As per the new formulae, the reserve price of unsold sites and the price of the sold sites have been clubbed while calculating the lowest price to start bidding for a site in a specific sector. This has reduced the reserve price of a site, varying for different sectors. However, a proposal for seeking full payment of an auctioned plot within 90 days of the auction has not been implemented so far. The present system of paying 25 per cent of the auctioned price of a commercial site within a month of an auction and the balance 75 per cent in four yearly installments would, however, continue. Part of the Dream Weave Walk Network 1998-2012