CDA hopes to fetch Rs20b from auction of 47 plots

Islamabad : To many real estate experts, the upcoming auction to be conducted by the Capital Development Authority (CDA) will determine the trend of big investors and prices of commercial properties at some lucrative locations of Islamabad.

The CDA management opted for the auction of 47 plots including commercial plots, orchards, and poultry and vegetable plots after a lapse of nearly one and half years when the economy is in turmoil and amid skyrocketing construction costs and uncertainty. It has been observed that the construction activity in Islamabad slowed down with uncertain but increasing prices of construction materials.

The CDA itself has no idea as to how much it would be earning from the auction exercise. However, the CDA Chairman Captain (r) Muhammad Usman Younis was hopeful of fetching Rs20 billion-plus from the auction of plots. Another senior official who is associated with the estate wing of authority said there is a big gap in the market as the auction of commercial plots is being conducted after a lapse of one and half years.

The official claimed that terms and conditions for the construction of building on plots to be auctioned were investor friendly. Those include permission to cover 100% coverage for less than 1000 square yards plots and 70% to 75% ground coverage for plots larger than 1000 square years with a flexible number of stories.

He said that the construction timeline on larger size plots had also been increased from three to five years. On offer at a three-day auction starting tomorrow (Tuesday) will be three plots of 6000 square yards and 9600 square yards in old Blue Area and a plot measuring 4500 square yards in extended Blue Area.

It is expected that buyers will be showing interest in five orchard plots measuring 2.50 acres each and a plot of a little over three acres on Murree Road. There will also be 12 residential plots on offer in Park Enclave. The estate wing of CDA over the last couple of months made extensive preparations for the auction by publishing bro­chures and display advertising banners and streamers across the federal capital. Member Estate Muhammad Afnan Alam is heading the auction committee which also includes Member Finance and other senior officials.