Next week, the CDA plans to offer over 100 new residential plots in the stalled housing scheme. The CDA costing department has suggested, through a summary, that the cost of a 500 square yard plot be set at Rs23 million.
A plot of the same size is available for Rs17-19 million in the open real estate market.
“The summary does not reflect prevailing market prices,” said a senior CDA Estate Management officer.
Almost a year ago, the CDA costing department had worked out the prices of plots in sectors D-12 and E-12 at higher-than-market rates. The subsequent auction was a complete failure and the authority even initiated an inquiry against the officials who had suggested the prices.
The decision to sell over 100 residential plots of one and two kanals at Park Enclave through open balloting is a bid to generate funds for work on the scheme.
CDA Member Finance Arbab Sher Bahadur said he had not seen the summary, but said the proposed price was “reasonable”.
“In my opinion, Rs23 million is a reasonable price and is based on current market value,” Bahadur said. He said the costing department works out prices after judging several parameters including market rates.
Published in The Express Tribune, November 12th, 2014.
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If CDA does not drag its feet and carries early development work as per the original plan, this costing estimate is just about right. Reportedly, some plots have changed hands even higher than 25 Millions.