It may be behind schedule but the Delhi Development Authority (DDA) is finally offloading its cache of residential plots in some of the most prime locations in the city. Predictably, reserve prices of all plots have shot up in the new auction date.

The auction of plots — more than 250 in number — were to take place last year. However, the auction is now going to happen in August, with only 71 plots on the block. Sources in DDA confirmed that it would be the first in a series of auctions that the agency is planning to conduct over this year.

“With more than 250 plots to dispose off, we want to span it over a long period. This will also translate into more revenue for DDA, since the price of real estate has been going up in the city,” added a senior official in the lands department.

More revenue is certainly something that DDA will be guaranteed in the upcoming auction. And not just because the reserve prices of all plots on auction have gone up by a cool 20%.

For instance, while the corner plot — approximately 273 sqm — in Green Park was pegged at Rs 3 crore late last year, it’s gone up to Rs 3.3 crore this time around while a Jasola plot that cost Rs 1.3 crore now will go for Rs 1.6 crore.

The same goes for all the plots on the auction block. The official line of course is that the wait has been for DDA’s change in policy. Unlike earlier, all plots sold now will be available on freehold basis.

Said RK Singh, commissioner (lands disposal): “The prices reflect the freehold status of the plots, not only the realty prices.” Incidentally, the auction’s taking place after more than two years.

This time around, most of the plots are in developed areas like Jasola, Green Park, Prashant Vihar, Vikaspuri and Shivaji Enclave.

The bulk of the plots are in Jasola, which is a comparatively newly developed DDA area. The others, like in Green Park, had cases against the plots which have now been cleared.

Posted: 07|31|06 at 9:05 am. Filed under: Property News.