INDIA BUSINESS WORLD - AUGUST 2006
THE MONTH THAT WAS...

DDA GETS TWICE OF RESERVE PRICE AT JASOLA, GREEN PARK

DELHI Development Authority (DDA) has kicked off the auction of 300-odd residential plots in prime locations around Delhi . The first batch of 13 plots — at Jasola and Green Park — fetched DDA Rs 54 crore, almost double the combined reserve price of Rs 28 crore.

Over the next two days, 70-odd plots will be put on the block. This is the first in a series of auctions to be held in various prime locations across the city, including Jasola, Green Park , Dwarka, Prashant Vihar, Vikaspuri and Shivaji Enclave.

The surprise package was Jasola, which is set to become a happening address in South Delhi . The eight plots at Jasola garnered almost three times the average reserve price (Rs 1.60 crore), mirroring the prices in posh Green Park . Against a reserve price of Rs 3.3 crore for a 273-square metre plot at Green Park , the realisation was Rs 4.98 crore. On Monday, eight plots at Jasola and five at Green Park went under the hammer.

The total reserve price for 71 plots to be auctioned over the next few days is around Rs 90 crore. Going by current market rates, DDA officials expect to garner Rs 150-180 crore.

Real estate consultants feel the new rates will shore up realty rates in prime locations. Given the rates, most of these plots will come up with high-end apartment buildings in the Rs 75 lakh to Rs 1.25 crore range.

“High-end properties in Delhi will now command a premium over those in NCR. It will create new benchmark for property rates in the capital,” said Santosh Kumar of real estate consultancy TramellCrowMeghraj.

The release of prime location plots in the Delhi market is taking place after over two years. All the plots are freehold properties and their reserve prices have already seen a 20% jump over the past year. DDA was supposed to have auctioned the plots in 2005.