The downturn in the economy that has resulted owing to the Covid-19 crisis, and the lockdown, has prompted the Mysore Urban Development Authority (Muda) has decided to put up its premium sites across Mysuru city for sale to generate revenue and ensure there is liquidity.
For the first time since the lockdown, the civic agency is putting up as many as 50 premium sites for auction. Meanwhile, two intermediate sites priced at Rs 2.6 crore each are also being put up for auction, while seven sites are being put up for sale with a base price of Rs 1 crore.
Notwithstanding the prevailing economic condition, Muda has decided to sell them at the old prices, arguing that premium sites will definitely have their buyers.
Business in the real estate sector has ground to a halt, the auction process has kindled some hope among Muda officials. “But all depends on the response from prospective buyers. In the earlier auctions, around 40 to 50% of the sites that went under the hammer were picked up by buyers,” a realtor said.
The price of each site is decided based on the market value, which is around two-and-a-half times higher than the actual guidance value, a tactic that is expected to boost real estate prices.
Meanwhile, four corner sites, each of a different dimension in the second, third and fourth stages in Vijayanagar, have been priced between Rs 1.3 crore to Rs 1.66 crore.
Muda commissioner DB Natesh said that Muda was a financially independent agency, for which auction of its premium and corner sites was a huge source of revenue. “In case there are no buyers, we will seek the government’s nod to revise the rates. During the previous auction, only around 35 to 40% of the sites were sold. We are hoping the response will be better this time,” Natesh added.
