The ongoing small plots in CDA auction took an unexpected turn on its third day as a small plot, measuring around half a marla (150 square feet), designated for fruit, vegetable, and meat trade, was sold for approximately Rs 50 million. This remarkable sale highlighted the fierce competition among investors for the smaller plots.
The Small Plots in CDA Auction Unconventional Success
During the initial two days of the auction, the CDA auctioned larger commercial plots, resulting in a total collection of 10.9 billion rupees. However, on the third day, the focus shifted to smaller 150-square-foot plots in three designated F-6, F-8, and G-11 markets for fruit, vegetable, and meat shops. Each market featured six plots of the same size. The auction turned these smaller plots into highly sought-after items for investors.
In F-6, all shops were successfully auctioned, while in F-8, three out of six plots were sold. The remaining plots will be presented for small plots in CDA auction on the final day of the event. One plot fetched the highest price of Rs47 million, while others were sold for Rs24 million and above.
CDA’s Dependence on Land Auctions
The CDA has a long history of relying on land auctions to generate revenue for its development and non-development expenditures. While these auctions have proved successful in the past, concerns have arisen about the sustainability of this approach.
An official from the CDA voiced the need for alternative sources of regular income, suggesting the development of hotels and commercial centers for monthly rent. The official also highlighted the potential for generating revenue by developing new residential sectors. However, progress on this front has been limited, with no new sectors developed over the past two decades.
In response to these concerns, a CDA officer explained that their core responsibility is to provide commercial and residential plots to investors and citizens for the city’s planned expansion and to stimulate business activities. The officer emphasized that auctioning plots aligns with the CDA’s role as a development body.
Hope for Financial Relief
The CDA is pinning high hopes on the success of the ongoing small plots in CDA auction, as the organization has been facing financial constraints. Sources revealed that the CDA currently has approximately five billion rupees in its accounts and significant liabilities related to ongoing development projects.
To address this shortfall, last month, the CDA’s management decided to allocate available funds to complete ongoing projects due to a shortage of funds for new projects. The management is anticipating a substantial revenue injection of Rs20 billion from the four-day auction.
The small plots in CDA auction unexpected success for the small fruit, vegetable, and meat trade plot has added intrigue to the ongoing proceedings, as investors display keen interest in these smaller commercial opportunities.