Land price mismatch mars auction
The Faisalabad Development Authority (FDA) has failed to auction more than 569 amenity plots over the last two and a half years due to a significant mismatch between official land rates and prevailing market prices.
Facing repeated setbacks, FDA officials have now sought assistance from the district administration and the Federal Board of Revenue (FBR) to rationalise land valuations in line with current market dynamics.
Sources reveal that the vacant residential and commercial plots — 69 within city limits and over 500 in the FDA City Housing Colony on Sargodha Road — were initially mortgaged by private developers as part of layout plan approvals. These plots were earmarked for public utility sites, including schools, mosques, dispensaries, and parks, with FDA responsible for their development and disposal.
Director Estate Management FDA, Junaid Manj, said that in an auction held on May 21, 2025, the authority managed to sell only two utility plots out of 71 due to the stark disparity between market rates and those fixed by the Deputy Commissioner (DC) and FBR.
"For example, while the market price in Madina Town is around Rs7 million per Marla, the official DC and FBR rate is Rs12.5 million. This discourages buyers from participating in the auctions," he said.
Manj further noted that despite having prime properties available in locations like Madina Town, Gulistan Colony, Ahmad Nagar, Iron Market, Millat Town, Truck Stand Jhang Road, and Gulistan Plaza, public response has remained lukewarm due to unrealistic pricing and additional government-imposed taxes — up to 6% — on buyers.
"We've reached out through official correspondence and direct meetings with the concerned authorities, but the disparity persists. Every effort to sell these valuable plots has ended in disappointment," Manj lamented.
Sohail Maqsood Punnon, Project Director of the FDA City Scheme, shared that another auction exercise conducted on June 18, 2025, also failed as no participants turned up — despite prior confirmations from at least 12 interested parties.
"In FDA City, the market rate is Rs450,000 per Marla, yet the official DC rate is Rs800,000. It's simply impractical to expect successful auctions under such conditions," Punnon explained.
He added that the failure to auction these plots is depriving the FDA exchequer of vital public funds.
FDA Director General Chaudhary Muhammad Asif confirmed that letters have been sent to higher authorities requesting urgent rationalization of official land rates to bring them in line with market conditions.