ISLAMABAD: Because of several incentives including relaxation in payment plan, the Capital Development Authority (CDA) on Tuesday received encouraging response on the first day as it succeeded in auctioning five plots for Rs11 billion.

According to CDA, a large number of investors participated in the competitive bidding throughout the first day.

“CDA Chairman Mohammad Ali Randhawa expressed his satisfaction and stated that active participation of investors in the CDA’s auction reflects their confidence in the authority’s policies,” says a press release issued by the civic authority.

It said that investors participating in the auction were offered several incentives and facilities. The payment plan for commercial plots has been extended from one year to two years. Furthermore, building plan will be approved on 25pc payment and possession of the plot will be given after 75pc payment.

Civic authority satisfied with investors’ response as five plots sold

A 10pc discount is available for full upfront payments, and a further 5pc discount is offered if payments were made in dollars.

“Despite tough economic condition in the country, the response to the auction was overwhelming. You know some months ago, the Federal Government Employees Housing Authority (FGEHA) conducted auction of three plots, but none of them was auctioned. But, today we are satisfied with the response,” said an official involved in auction process.

Sources said the management of the civic agency has been desperately looking for success of this auction as CDA needs funds to clear its liabilities of several development projects including Expressway, Park Road, Bhara Kahu bypass, E-11 Road, Blue Area Parking Plaza, etc., which are near completion or have been completed. Thought investors will pay total amount in two years, but CDA will get big relief with initial 25pc payment.

The civic agency also wants to start two major development projects– Serena and PTCL interchanges, which would cost approximately Rs8 billion. The work on the proposed 11th Avenue has also been stalled for years. Besides, several residential sectors including I-12, E-12, C-15 also required funding for completion.

Moreover, the civic agency also wants to set up a multi-billion Safari Park in F-9 Park. However, CDA will first complete the ongoing projects on priority basis and then go for Safari project.

Meanwhile, a press release said that on the first day of the auction, Plot No. 13- G at F-8 Markaz was auctioned for Rs1.22 billion, and Plot No. 16-D at F-8 Markaz for Rs1.24 billion.

Similarly, Plot No. 4-D at G-8 Markaz was auctioned for Rs598.3 million, while Plot No. 10 in Blue Area G-8 was auctioned for Rs5.35 billion. Additionally, Plot No. I-B in I-8 Centre fetched Rs2.5 billion, resulting in a total of about Rs11 billion from the sale of five plots.

The auction features various categories of commercial plots located in developed commercial centers and Marakaz across Islamabad. These include plots for motels, apartments, and Class III shopping centers, offering lucrative investment opportunities.

The auction is being supervised by a committee led by CDA Member Finance Tahir Naeem and the secretary of the committee the Director, Estate Management-II Tabinda Tariq. The auction of commercial plots will continue on October 2 and 3at Gandhara Citizen Club, F-9 Park.

Published in Dawn, October 2nd, 2024