The Capital Development Authority’s (CDA) recent three-day auction of commercial properties, which started on Tuesday, was met with favorable results despite the transfer of the CDA Chairman the day before.
The sale of eight commercial plots generated a total of Rs. 22.11 billion, with a single plot covering 5,952 square yards in the Blue Area earning Rs. 8.54 billion.
First Day of auction update.
Total plot sold.8
Total price.22.11 billion.
Highest ever per sq yard price at 30 lacs and one thousand.
Most expensive plot.8 .54 Billion in history of Islamabad— Capital Development Authority, Islamabad. (@CDAthecapital) January 24, 2023
It’s worth noting that the previous CDA auction was in 2021, and this auction, held in 2023, represents the first time the CDA has auctioned government land in almost two years. This gap had created market demand, particularly given the slow rate of private house building and the unavailability of new private developments. Resultantly, investors rushed to buy CDA plots.
The CDA’s auction committee, led by Member Estate Afnan Alam Khan, received the best bid of Rs. 1.435 million per unit of land area from Mari Petroleum for plot number 62 in the former Blue Area, for a total of Rs. 8.54 billion. However, it was just short of Rs. 8.79 billion, the biggest offer ever recorded for a single plot sale in August 2021.
Furthermore, plots 13 and 2 in the Blue Area, with 611 square yards each, attracted the highest bids of Rs. 30.01 lac and Rs. 26.35 lac per square yard, garnering Rs. 1.83 billion and Rs. 1.60 billion, respectively. On the following day of the auction, the committee will offer multiple more plots in the Blue Area, covering 9,600 square yards and 4,511 square yards. According to a CDA spokesperson, all of the top bids are dependent on CDA board approval.
