- A boon for new developers
- Upper middle class to be benefitted
- Flats are priced at Rs 6,000–7,000 per sft
- What are the mistakes made by HMDA?
The construction sector of Hyderabad breathed a sigh of relief as the price per acre was limited to Rs. 41.25 crore in the recent auction conducted by HMDA. Recently, one acre in Kokapet was sold for Rs 100 crore during an auction, and after that, everyone’s attention shifted to Budwel. It was first estimated that the price of an acre here would be at least Rs 60 to 100 crore. With court cases on land there, an area surrounded by hills, a lack of development in infrastructure, and 2023 being the election year, many big builders in the city have shown reluctance to participate in the Budwel auction. Most of the newcomers participated in this auction. Experts are of the opinion that HMDA should learn something from the Budwel auction in this order. As the price per acre is low in the auction, there is a possibility that the prices of the flats will be ranged in order to attract upper-middle-class people.
It is known that the auctions conducted by HMDA in areas like Kokapet and Mokila fetched high prices. With this, many criticised HMDA for its behaviour. With the Budwel auction, the HMDA was again criticised for failing to provide timely information to the bidders regarding the height of the apartments that could be built there. It was learned that some of the big bidders did not participate in the auction after learning that they could not build the skyscrapers in Budwel, just like in Kokapet.
- After bidding, some gave up as only one month was given to pay the money.
- Since there are large boulders in this area, it will take a lot of time to remove them and develop infrastructure.
Why are auctions getting popular?
There are many reasons for the increasing popularity of auctions conducted by the HMDA. After buying private land, one has to go to government organisations and do many things to get NOCs and permissions. At least 30 NOCs have to be obtained. There are challenging issues in conducting a land survey. Local corporators and councillors should be given their percentages. After managing all these, the builders will not know how long HMDA will take to give their permission. In order to avoid all this, builders are buying plots in HMDA auctions even at a higher rate. So, in short, the company that creates a problem is also a solution here.
