Commercial plots: Poor show on first day of auction

The Capital Development Authority (CDA) only managed to sell one commercial plot out of over two dozen on offer


Our Correspondent June 15, 2015
The Capital Development Authority (CDA) only managed to sell one commercial plot out of over two dozen on offer. PHOTO: STOCK IMAGE

ISLAMABAD:


The city managers on Monday faced embarrassment after top real estate investors completely boycotted the first day of its commercial land auction.


The Capital Development Authority (CDA) only managed to sell one commercial plot out of over two dozen on offer.

As proceedings were under way at the Pak-China Friendship Centre, after securing a highest bid of Rs790,000 per square yard against a plot located in Sector F-11, the auction committee offered the next plot. But it was taken aback when the main bidders under the banner of Islamabad Developers Association (ADS) announced to boycott the proceedings and left the venue.

IDA members said CDA has failed to resolve their outstanding issues and has yet to provide the promised basic civic amenities to plots it sold to them during previous auctions.

The auction committee headed by CDA member finance tried in vain to soothe the bidders’ concerns and make them rejoin the process.

After the main bidders left, those left could not offer considerable bids against the remaining plots.

Masud Abbasi, an IDA office-bearer, told The Express Tribune the CDA leaves developers who invest thousands of millions in Islamabad’s real estate market on God’s mercy after receiving money.

He said IDA demands that CDA revise its by-laws and introduce a one-window process for commercial plots valued over Rs1 billion.

CDA spokesperson Ramzan Sajid said the auction was affected due to reservations of some investors. However, he said, after successful negotiations the issue at hand was resolved.

He expressed hope that protesting developers would bid high on second day of auction proceedings.


Published in The Express Tribune, June 16th, 2015. 

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