On Monday, the government’s auction of a 165-acre layout in Mokila village, near the Narsingi-Shankarpally road, saw the state government walk away with three times more than the market price per square yard.
While the highest bid for a plot at the auction, conducted by the Hyderabad Metropolitan Development Authority (HMDA), shot up to Rs 1.05 lakh per square yard (for plot no. 242), the lowest was an equally impressive Rs 72,000 per square yard (plot nos. 266 & 311). The average bid amount per square yard was Rs 80,397.
In all, the state sold 48 of the 50 plots that were put on the block – measuring between 300 square yards and 500 square yards – to derive a total revenue of Rs 121 crore. Two plots auctions were cancelled due to abnormal (wrong) bids.
Second phase of auctions in Mokila soon, says Arvind
Sources from the real estate firms industry said it is a huge win for Mokila considering layout developers have been selling open plots for about Rs 30,000 per square yards in the area.
“Given the overwhelming response and huge demand for plots, the government will come up with a second phase of auctions in Mokila soon,” said special chief secretary (municipal administration), Arvind Kumar.
HMDA officials attributed the good show to the many USPs that HMDA plots come with – title guarantee, proper infrastructure development and free of litigation. As they also assure good location, bidders prefer to pay a premium to secure them, the officials added.
“The HMDA had fixed Rs 25,000 per square yard as upset price and going by that, the government should have earned only Rs 40 crore. But it got three times of that price,” an HMDA official said adding that the focus in Mokila, unlike Kokapet, was on the middle and upper middle-class buyers.
“The HMDA will develop all infrastructure facilities such as roads with footpaths, central medians, underground sewage network, water supply distribution network with overhead tanks, storm water drainage system, power supply and street lighting etc. The works will be completed within 18 months,” the official added.