ISLAMABAD: The three-day auction organized by the Capital Development Authority (CDA) witnessed a lack of investor interest in commercial plots in the highly sought-after areas of the federal capital.
According to sources, on Wednesday, only a single plot was auctioned, reflecting the minimal enthusiasm among investors.
The auction committee accepted the highest bid of slightly over Rs. 820 million for a petrol pump plot measuring 2222.22 square yards in Markaz D-12.
The reserve price for this plot started at around Rs750 million and eventually closed at over Rs. 820 million.
Besides, the CDA claimed to have generated a total of Rs. 19.35 billion from the auction of 17 plots out of the 45 plots available for bidding.
The CDA received the highest bids for several plots, including a commercial plot measuring 4888.88 square yards in Blue Area (G-6/F-6) for Rs. 7.8 billion, a 700 square yards plot for Rs. 1.7 billion, and a petrol pump plot in sector H-9 for Rs. 3.35 billion.
It is worth noting that the previous auction of commercial and residential plots took place four months ago, generating over Rs. 40 billion from the sale of 33 plots.
The CDA had organized the current auction to raise funds for ongoing and new development projects.
However, considering the limited response from investors, the authority is unlikely to hold another auction in the next six months.
It is also important to note that the acceptance of the highest bids is subject to approval by the CDA board, which is expected to convene in the coming days.
The Chairman, Captain (Retd) Noorul Amin Mengal, through a statement issued by the CDA’s media wing, commended the auction committee for their successful, efficient, and transparent handling of the auction.
Source: The News