The Greater Mohali Area Development Authority (Gmada) has decided to hold eauction of residential, commercial and group housing societies and has announced to slash the reserve price rates by 10%. Citing poor response during the lockdown due to the Covid-19 pandemic, Gmada has reduced the reserve price to attract maximum bidders.
Earlier, in February this year, Gmada had reduced the reserve price by 20%, but the incentive did not attract bidders and the authority got tepid response. Despite the reduction, Gmada managed to sell only 32 properties out of 67 properties i.e. both residential as well as commercial.
“This time, the e-action is likely to begin in mid-September. We have already sought permission to reduce the reserve price by 10% from the Punjab government. The reserve price for the properties put on auction is yet to be decided. Reducing reserve price will definitely fetch bidders,” said estate officer Sanjiv Kumar.
Gmada is offering as many as 65 properties, including commercial as well as residential and 16 residential properties from plots ranging from 100 square yards to 500 square yards will be auctioned.
The real estate agents on the other hand believe that 10% reduction in the reserve price might not serve that purpose, but if Gmada manages to auction properties, it would boost to the real estate industry.
Shailander Anand, former president of the Mohali property consultants association (MPCA), said, “Gmada must hold direct auction of property instead of e-auction as it will give good competition and will attract aspirants.”