Annual auction: CDA fails to sell even half the plots

Underwhelming drive sees only three plots sold on last day, raising just Rs900 million

ISLAMABAD: In what is arguably its last major source of revenue, the apex civic body in the federal capital saw lacklustre returns for its annual plot auction after it failed to sell even half of all the 57 plots it had put up for sale.

Over the three days of plot auctions, it sold 22 plots in different categories, fetching a cumulative price of Rs7.48 billion.

The last day of the auction at the Jinnah Convention Centre, which has historically seen the largest rally, saw a disappointing return of just three plots being sold for approximately Rs899.33 million.



On the third day of the auction, the Capital Development Authority (CDA) sold one of the two plots up for sale in the Industrial Triangle Kahuta (ITK). Industrial plot 239, measuring 3333.33 square yards, was sold for Rs70 million at a rate of Rs21,000 per square yard.

Plot 11-A in the Diplomatic Enclave, one of the three plots up for sale which was reserved for the construction of apartment high-rises, was also sold on Thursday — in the only second apartment complex plot sold during the auction.

The 4,000 square yard plot fetched a price of approximately Rs800 million at a rate of Rs200,000 per square yard. This was more than the Rs594 million fetched for the larger, 4,500 square yard, apartment complex plot in Sector G-11/1 which has permission to build up to six storeys to the five for the Diplomatic Enclave plots.

Class-III shopping centre plot 2-E in Sector I-14/4, measuring 133.33 square yards, only fetched Rs29.33 million at a rate of Rs220,000 per square yard. On the first day of the auction, the CDA had sold seven plots for Rs4 billion. On the second day, it sold 12 plots for approximately Rs2.5 billion. Of the 57 plots up for grabs, 14 were in the commercial shopping centres (Markaz), 20 in class-III shopping centres, seven commercial plots in the coveted Blue Area, three apartment high-rises in the Diplomatic Enclave and Sector G-11/1, two fuel pumps, a hospital in Sector G-11, an agro-farm in Orchard Scheme along Murree Road, seven industrial plots, and two plots for car showrooms.

Of these, it managed to sell only six Markaz plots and only one in Blue Area. It sold two of the three plots meant for apartment complexes and five of the seven industrial plots.

It sold the agro-farm up for sale and both the automobile plots in the industrial area. One of the two plots for fuel pumps was also sold.



Of the 20 class-III shopping centres and community cores up for sale, it could only sell three. Last year, the CDA had raised over Rs20 billion from the sale of 46 residential and commercial plots.

The auction was being managed by an 11-member Auction Committee. It is headed by CDA Member Finance and includes members planning and design, estate, the Law deputy director general, public relations director, deputy financial advisor-II, Estate Management – II director, Regional Planning director, Housing Societies director, Urban Planning director and Costing deputy director.

The auction committee will submit its recommendations to the CDA Board. The CDA Board will then finalise the recommendations and bids.

Published in The Express Tribune, October 5^th, 2018.