ISLAMABAD: The cash-strapped civic agency on the opening day of the three-day auction of commercial plots got mixed response from investors, as it fetched at least Rs7.7 billion by auctioning four plots at Gandhara Centre in F-9 Park on Wednesday.

The CDA auctioned two plots in I-8 Markaz and one each in Blue Area and I-14 Markaz. An official said that a plot in the I-8 sector measuring 666.66 square yards was sold (Rs1.725 million per sq yard) for Rs1.14 billion. Another plot in the markaz measuring 800 square yards was auctioned for Rs1.46 billion (Rs 1.825 million per sq yard).

Similarly, a plot measuring 533.33 sq yard in I-14 Markaz was sold against (Rs1.225 million per sq yard) for Rs653 million and a Blue Area plot in the G-8 portion, measuring 2666.66 sq yard fetched Rs4.53 billion. It was auctioned for Rs1.7 million per sq yard.

“Today we auctioned four plots for Rs7.79 billion,” said a member of the auction committee. He added initially the auction garnered a lacklustre response, with not a single plot sold till 1pm. However, in the afternoon, four plots were successfully auctioned, providing a sigh of relief to the civic agency, he added.

Three-day auction gets mixed response from investors on first day

Normally, the CDA hold auctions after six months, but this time, the civic agency decided to hold this auction as it requires billions of rupees to fund its ongoing development works in the capital. It is relevant to note that the CDA has been facing financial constraints, forcing it to hold this auction just three months after the previous one.

“I do agree. These days are not ideal in terms of investment due to general elections slated for next month. However, we had no other option but to go for this auction. Frankly speaking, the response so far is good as we have auctioned four plots against Rs8 billion. If we manage to sell more plots in the next two days that would be our major achievement,” said a director of the CDA.

In October, the CDA had received a lukewarm response to its four-day auction. At the time, the CDA had managed to generate Rs12.9 billion against its target of Rs20 billion. It was able to auction nine commercial, two residential and 14 half-marla (150 square feet each) plots for fruit, vegetable, and meat shops.

In this auction, the CDA has put up over 30 commercial plots for sale. The civic agency, being an autonomous body, has to foot the bill for its development and non-development expenditures. It has around 15,000 employees as well as thousands of pension cases. Additionally, it has to pay millions of rupees in terms of utility services every month. Since its inception, the CDA has been depending on its land bank as it regularly holds auctions of plots to generate funds. On the other hand, the civic agency, which is the custodian of Islamabad’s land, has so far failed to have its property and projects to generate monthly income.

Commenting on CDA’s auction, former president of the Islamabad Developer Association Chaudhry Naseer Ahmed said that he was expecting a “good response” from investors on the second day of the auction. He said that CDA should take steps to materialise its commitment to investors, as last year CDA had auctioned plots for a food street, but the development work still has not started. For the upcoming auctions, he urged the CDA to facilitate businessmen by enhancing the period of payment against plots from the existing one-year period to two years.

Published in Dawn, January 11th, 2024