New Delhi. Every year land auction is held in Delhi, but this time the e-auction broke all the old records. People are calling this auction the most successful bidding process of DDA till date. Interestingly, to buy the plots for which the Delhi Development Authority (DDA) had fixed the base price of about Rs 629 crore, investors bid not almost double but more than two and a half times (Rs 1494.67 crore). Seeing this, it is clear that confidence in the market has strengthened and the developing infrastructure of Delhi has given a new rise to the land prices.
A total of 81 plots were placed in the e-auction, which were divided into five categories according to different needs. Talking about industrial lands, such competition was seen on 41 plots that the bids for these plots with reserve price of Rs 53.08 crore increased to Rs 272.39 crore. This increase was not minor, but about 413%. Investors feel that industrial activities around Delhi will increase rapidly in the coming years and hence these lands can prove to be a more profitable deal in the future.
There was no less enthusiasm in the institutional category also. The reserve price of the 10 plots was kept at Rs 224.80 crore, but buyers bid up to Rs 307.71 crore, showing that the demand for setting up educational, social and service-based institutions is gradually increasing. Similarly, 17 plots offered in the residential category attracted Rs 166.06 crore as against Rs 52.05 crore. It is difficult anyway to get land to live in Delhi; In such a situation, the increase of 219% on general residential lands in itself gives an important indication.
The same picture was seen in the case of commercial plots also. Investors bid Rs 106.02 crore at the base price of Rs 44.32 crore to buy 10 plots earmarked for shops, office space and business activities. This jump of 139% shows how fast the business environment is changing in Delhi.
Group housing plots of Sector-27 remain in discussion
Among all these, the group housing plots of Dwarka Sector-27 became the reason for most discussion. Only 2 plots were put up, but the bidding was so intense that a whopping sum of Rs 642.49 crore was raised against the base price of Rs 254.94 crore. Experts believe that recent major developments in the Dwarka area, such as the UER (Urban Extension Road) connectivity, the huge Bharat Vandana Park, sports facilities and upcoming infrastructure projects, have pushed up the prices in this area sharply.
DDA officials say that the change in the formula for determining the reserve price in commercial and institutional categories had a big impact. The multiplier for commercial plots was earlier 2 times, which was reduced to 1.5, while on institutional land this multiplier was reduced from 0.75 to 0.6. This gave investors a better and more realistic opportunity to bid. Whereas in industrial and residential categories, before starting the bidding, an in-depth study of the demand was done, due to which the auction could be planned keeping in mind the market situation.
Delhi Lieutenant Governor V.K. The management reforms done by Saxena are also considered to be the main reason for this success. This huge jump in revenue showed that with the right policies and a transparent bidding process, even government institutions can achieve record earnings.
