Islamabad: The Capital Development Authority (CDA) auctioned at least eight pieces of land it owns in the federal capital on Tuesday, raising at least Rs22 billion.
A commercial plot in Blue Area was reportedly auctioned for the highest ever bid in CDA history when it was sold for a staggering Rs 3 million per square yard.
The civic authority began its three-day auction at the Jinnah Convention Center, and thanks to a fervent investor response, it was able to sell eight plots worth Rs22.1 billion in a single day.
It is pertinent to state that the civic body was expecting to earn roughly Rs20 billion from the three-day auction, according to a CDA official, but due to the “extremely good” reaction despite the dire economic climate, it brought in more than Rs22 billion on the first day.
A 611.11 square yard (or 1 kanal) plot number 13 in Blue Area, the federal capital’s commercial district, was the auction’s standout item.
At auction, this land was purchased for Rs1.83 billion, or Rs3 million per square yard. A further 5,952 square yard plot in the Blue Area (F-7/G-7) part was auctioned off for Rs 1.435 million per square yard, bringing in a total of Rs8.54 billion.
The CDA also sold six additional plots of property at auction: two in Sector I-14, one in each of I-8 and G-9, and two more in the Blue Area.
It should be mentioned that the CDA auctioned a 7,000 square yard plot for Rs. 8.792 billion in August 2021. Despite the fact that the property had produced the greatest-ever revenue from a single plot, the above-mentioned plot number 13 received the highest bid of Rs3 million for a square yard.
The auction committee, which is led by CDA member finance, is keeping an eye on the transaction, according to a statement from the CDA.
It is important to highlight that the CDA constantly relies on its land bank because it lacks a reliable source of funding to manage its business. However, some CDA officials supported these auctions, asserting that as a development agency, it was the CDA’s duty to provide investors with commercial plots in order to spur growth.
To generate monthly income, several authorities suggested that the civic body undertake its own projects, such as apartments and other commercial ventures, in addition to auctions.
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