Plots auction: Investors more interested in small shopping malls

Authority receives offers worth Rs3.63 billion for 11 commercial plots

ISLAMABAD: The cash strapped Capital Development Authority (CDA) has received an exciting response from investors on the first day of auction of commercial plots in different developed sectors of Islamabad.



The three day auction commenced at Islamabad Jinnah Convention Centre on Tuesday which will continue till March 29. However, the interest of investors was largely seen in class-III shopping centres as authority secured some lucrative offers for six plots meant for small shopping centres of class-III out of total eleven successful sales on the first session of three day auction.

The authority received total offers worth Rs3.63084 billion for eleven commercial plots as CDA has planned to sell total 45 commercials plots of different size located in different markiz and markets of various developed sectors.

The participation from investors was also encouraging on first day. The investors also took part in bidding process of filling station plot located in Blue Area in Sector F-7 enthusiastically. Whereas the investors restrained to participate in another plot meant for a petrol pump located in mauve area. The authority also received good response for commercials plots in Markaz I-8, and sector D-12.  However, auction committee received a cold response from investors for a plot in Sector F-10 meant for construction of apartments. Resultantly auction committee deferred the auction of this plot till Thursday.

When committee brought another plot B-1, in Blue Area in Sector G-9/1 for auction the investors restrained to offer any price and begun to get record their grievances regarding lack of infrastructure facilities in Blue Area and high . The investors were of view that plots were available in open market at low price compared to price was being quoted by CDA. At this CDA Member Finance Dr Fahad Aziz told the investors that the auction committee could not sell plots at throwaway prices.

The CDA received highest offer of Rs 817,000 per square yard for plot No 3-H, measuring 133.33 square yards located in Sector F-10/4 followed by commercial plot No 11, in Sector F-6/2 measuring 160 square yard which was auctioned at Rs 800,000/ square yard.

Plot No 07 measuring 166.66 sy in F-10/3 was auctioned at Rs765,000/ per square yard whereas the Plot No1-N, measuring 133.33 square yards of Sector F-11/1 was sold at the rate of Rs560,000/sy,  plot No1-O of the same markaz measuring 200 square yards was auctioned at Rs710,000/ square yard while plot No 05, in Sector F-8/4 measuring 160 square yards was auctioned at Rs916,000/sy.  Similarly, commercial plot No63-C for filling station, measuring 1666.66 square yards was sold at Rs400,000/ per square yards and  plot No20, in Sector D-12 measuring 711.11 square yards was sold at Rs 414,000/- per square yards while plot No 20-A of same sector measuring 711.11 square yard was sold at Rs454,000/- per square yard. Plot No30 of Markaz I-8, measuring 1111.11 square yard was sold at Rs770,000/- per square yard and Plot No31 of same markaz measuring 1066.66 square yard was sold at 716,000/- per square yard.

An eleven member committee headed by Member Finance, CDA Dr Fahad Aziz supervised the auction proceedings. Member Estate Khushal Khan, Deputy DG (Estate), Deputy DG(Law), Deputy Financial Advisor-II, Director Public Relations, Director (UP), Director (RP), Director Estate Management-II and Deputy Director (Finance) of CDA were the members of the committee.



The CDA official  statement said that CDA Chairman, Usman Akhtar Bajwa  expressed his pleasure over successful auction of commercial plots on the first day of the auction process said that the income from the auction of residential plots will be spent on development of various sectors of Islamabad. Chairman further said that the successful auction of a large number of plots at much higher prices on the first day of the auction process was the expression of trust by the citizens in Capital Development AuthorityPlots auction

Published in The Express Tribune, March 28^th, 2018.