ISLAMABAD: On the first day of the auction for commercial plots, the Capital Development Authority (CDA) managed to auction five plots worth approximately Rs 5 billion.
However, there was a lack of interest from investors on the opening day, which is unusual. In comparison, during the previous auction in January, the CDA auctioned eight plots worth a significant Rs22 billion.
Officials and developers attribute the tepid response to the poor economic conditions in the country and political uncertainty. The timing of the auction is considered unfavorable, and industry stakeholders hope for better results in the remaining two days.
They urge the federal government to provide a relief package for the construction industry in the upcoming budget, considering the economic challenges and the rising costs of construction materials.
While the CDA is expecting to earn Rs 20 billion from the three-day auction, it remains satisfied with the response from investors on the first day.
A press release reveals that the auction of open plots will continue on May 30 and 31, 2023, at the Jinnah Convention Centre in Islamabad.
Despite the slow start, there is optimism that the auction will yield substantial revenue in the remaining two days, as more valuable plots will be put up for auction.
The CDA, being an autonomous body, relies on funds generated from its land bank and auctions to finance its development and non-development expenses since it has limited revenue-generating options.