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The Punjab government has reduced reserve prices for unsold Greater Mohali Area Development Authority (GMADA) properties by an average of 22% to encourage sales. The move covers residential plots, commercial spaces, industrial parcels, institutional land, and hotel sites that remained unsold despite repeated e-auctions over the past five years. A committee of independent valuers reviewed and recommended the revised prices, which will remain effective for a year, with provisions for further reductions if properties continue to remain unsold. The initiative aims to align prices with market realities and revive real estate activity in the region.
The Punjab government has approved a reduction in reserve prices for GMADA properties that have not found buyers over several years. The average cut is 22%, and it applies to a wide range of property types, including residential plots, commercial booths, group housing sites, industrial parcels, institutional land, and hotel properties. Many of these assets had repeatedly failed to attract buyers due to high initial pricing. Advertisement
The revision follows recommendations from a committee of three independent valuers empanelled with GMADA PUDA, who found that unrealistic reserve prices were the main reason for prolonged unsold inventory. The committee suggested a new pricing approach to make properties more market aligned, which the government has now implemented.
Under the revised framework, the reserve price for each property will be based on the average of the valuations provided by independent experts. These new rates will remain valid for one year. If certain properties continue to remain unsold during this period, the government can approve further reductions of up to 10% and then an additional 5% after proper review.
Officials have said that this move is intended to make the pricing more realistic and stimulate buyer interest that had been limited because of inflated rates. They also highlighted that unlocking these unsold assets can reduce financial pressure on the state by generating revenue from long stalled properties.
The unsold inventory covers various property types across GMADA's jurisdiction, many of which had been repeatedly auctioned without success. The current step is part of a broader strategy by the state government to monetise public land that has remained inactive for years.
Industry experts have welcomed the government's decision, noting that the reduction could attract more investors and buyers, especially for residential and commercial projects. They also see it as an important step for monetising public assets in North India, which can help improve the overall pace of real estate development in the region.
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