The Hyderabad Metropolitan Development Authority (HMDA) recently conducted an auction of vacant plots in the city, but the response was lacklustre. Out of the 26 plots put up for auction, only nine were successfully sold, contributing 120 crore rupees to the state government's revenue. HMDA officials explained that these unsold plots had various challenges like small size, vaastu concerns, and their proximity to other properties. The plots were located in areas such as Kokapet, Nallagandla, Manchirevula, and others across different districts. The auction revenue fell short of expectations, highlighting the complexities of property sales and local factors affecting demand and pricing.
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The recent auction of remaining vacant plots conducted by the Hyderabad Metropolitan Development Authority (HMDA) received a lukewarm reception. Out of the 26 plots located in different areas of the city that were up for auction, just nine were successfully purchased. These auctions contributed only 120 crore rupees to the state government's revenue. Officials from HMDA clarified that the plots offered for auction had not been sold previously due to factors like their small size, vaastu concerns, and many being surrounded by other properties.
These properties are situated in various areas such as Kokapet, Nallagandla, Manchirevula, Bairagiguda, Chengicherla, Ameenpur, Chandanagar, Budvel, Velmala, Gandimaisamma, Bowrampet, and Bachupally, spread across Medchal-Malkajgiri, Ranga Reddy, and Sanga Reddy districts. The initial prices for these plots were determined according to their respective locations. The minimum upset price per square yard varied, with the lowest being 65,000 in Nallagandla and 50,000 in places like Budvel, Chandanagar, Peeramchervu near Gandipet, and Manchirevula. The most affordable minimum upset prices were set at 12,000 per square yard in Nandigama Rameshwaram Banda near Patancheru, while the northern part of the city had a minimum of 40,000 per square yard, and the range in the northern city area started from 25,000 per square yard.
Had every plot been purchased, the state administration could have potentially garnered a minimum of 267 crore rupees. Nevertheless, due to insufficient demand, the government was only able to sell nine plots. This led to a modest uptick in the selling price over the initial estimate, resulting in a total revenue of just 120 crore rupees.
Upset prices, also known as reserved prices or base prices, are the minimum prices set by government authorities for the auction or sale of properties, land, or assets. These prices are meant to ensure that the government or selling entity receives a certain minimum value for the property being sold. The concept of upset prices applies to various regions of India, but the specifics can vary based on local regulations and market conditions.
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