Auction in Kokapet: Why is no one buying?

The Telangana government is preparing for another land auction. The Hyderabad Metro Development Authority (HMDA) is making efforts to sell the remaining government lands in Kokapet, which previously fetched record prices. The Neopolis layout in Kokapet spans 531.46 acres, of which 380 acres were sold in a previous auction by the BRS government. Several other plots were allocated to various organisations.

HMDA has developed infrastructure facilities in Neopolis with an investment of around Rs 450 crore, and these projects are nearly complete. In this context, it is now reported that another 24 acres of land in Kokapet are being prepared for auction. Construction projects by companies like Rajapushpa, Happy Heights, MyHome, and others, which secured plots here in the past, are nearing completion.

Although it has been a year since the Congress government came to power in Telangana, the HMDA has not sold any plots or lands so far. Considering the unfavourable conditions in the real estate market, the Revanth government is being cautious about land sales. As the real estate market is gradually recovering, HMDA is preparing for another auction of the remaining land in the Kokapet Neopolis layouts.

In the past, auctions were conducted in both Kokapet and Bahadurpalli layouts, but 69 plots remain unsold. In Torrur, out of 504 plots, 114 are still available. In Kurmaguda and Turkayamjal layouts, around 40 to 50 plots remain unsold. Currently, HMDA is developing roads, drainage, and other basic infrastructure in these layouts, and steps are being taken to auction the remaining plots soon.

Last August, 45.33 acres of land in Neopolis, Kokapet, was auctioned, setting a record price in Hyderabad’s history. HMDA sold an acre for Rs. 100.75 crore at the auction. One plot of 3.6 acres fetched an astounding Rs. 362.70 crore, creating a sensation in the real estate market. The total revenue from selling the 45.33 acres amounted to Rs. 3,319.60 crore for the Telangana government. The average price per acre in Kokapet was Rs. 73.25 crore.

The upset price for these 45.33 acres was Rs 1,586.55 crore, with the actual revenue being twice that amount. At that time, the minimum bid increment was set at Rs 25 lakh per acre, which became a topic of discussion. Currently, construction of multi-story buildings is underway in the Neopolis layout, and as HMDA is preparing for another auction in Kokapet, there is widespread curiosity about the price at which the land will be sold.