ISLAMABAD: The Capital Development Authority (CDA) has been witnessing an overwhelming response in its commercial plot auctions this week. On its third day, a modest plot of 150 square feet, reserved for fruit, vegetable, and meat trade, fetched a staggering Rs50 million.
In the first two days of the auction, CDA successfully sold eight larger commercial plots, bringing in a total of Rs10.9 billion. The smaller 150-square-foot plots introduced on Thursday became particularly popular among investors.
For this specific trade, CDA’s planning wing had set aside three designated market areas in sectors F-6, F-8, and G-11. Each of these markets contains six plots, all measuring 150 square feet each. The demand was high, especially in the F-6 sector, where all plots were auctioned. Meanwhile, half of the available plots in the F-8 market found buyers.
While the highest bid for a single plot reached Rs47 million, other plots secured offers of Rs24 million and above. The remaining plots will go under the hammer on the concluding day of the auction.
The CDA has historically depended on its land bank for financial sustenance, conducting annual auctions of commercial and occasionally residential plots. This traditional approach is utilized to cover both developmental and non-developmental costs, given the lack of serious alternatives for revenue generation.
A senior CDA official said that relying on selling our plots to finance operations isn’t sustainable. There’s a pressing need for more regular income sources.
Suggestions from the officials included establishing commercial centers and hotels for consistent rental income. There was also a push for CDA to focus on developing new residential sectors, an area where the agency has lagged for nearly two decades.
However, a representative from the CDA emphasized their primary role. “Our mandate is to offer commercial and residential plots to investors and the general public. Auctioning plots is essential for the city’s structured growth and to stimulate business activities,” the representative clarified.
The ongoing auction is crucial for the CDA, which is grappling with financial challenges. Current reports indicate that the CDA has about five billion rupees on hand, but liabilities run into billions for developmental projects. Given these financial hurdles, the CDA management recently decided to halt new projects, focusing on completing the ongoing ones. With hopes high, the CDA anticipates revenue of Rs20 billion from this four-day auction.
