HMDA Auction closes – 50 percent plots sold
According to a report published in the Times of India, the Hyderabad Metropolitan Development Authority (HMDA) could sell 50 per cent of its open plots, which were put up for auction, through e-bidding on Monday. Of 229 leftover plots that were put for sale in various localities, 117 plots were sold, fetching about Rs 67.5 crore to the authority.
The result of the auction has had a positive impact on the Hyderabad real estate market.
Related posts:
- HMDA to auction small sized plots soon
- HMDA Plots Auction on 9 July 2010
- HMDA auction gets Rs.23 Crore
- HMDA land auction on hold
- APHB land auction
PLEASE INVEST WISELY. EVALUATE EVERY INVESTMENT CRITICALLY. NO DAY DREAMS
In Nallagandla auction I found the following interesting statistics from the auction.
In Individual Plots(excluding group housing) out of 91 there were 43 (47% only < half) plots found successful owners.
Statistics for 43 plots is as follows:
Price above 16000.00 per Sq.Yd = Only 1 plot found an owner ( 2% of sold out plots – North West)
Price between 14000-16000 per Sq. Yd = Only 3 plots found an owner ( 7% of sold out plots – N/E -1 plot and North – 2 plots)
Price between 13000-14000 per Sq. Yd = Only 2 plots found an owner ( 5% of sold out plots – N/E -1 plot and North – 1 plots)
Price between 12000-13000 per Sq. Yd = Only 6 plots found an owner ( 14% of sold out plots – E-2, N-1, N/W-1, S-1, S/W-1)
Price between 11000-12000 per Sq. Yd = Only 4 plots found an owner ( 9% of sold out plots – N -2,W-1, S-1)
Price between 10000-11000 per Sq. Yd = 27 plots found an owner ( 63% of sold out plots – E -10, N-4, N/W-4, W-6, S-2, S/W-1)
Still more interesting is out of 27 plots which found owner in the group of 10000-11000 19 plots( 70% within the group) were being bought for less than 10500.00
My intention of analyzing the statistics is share my knowledge with the members, so that no one will get trapped by Real Estate Market people saying that there is a BOOOOOOOOOOOMMMMMMMMM in HYD Market. The real estate market in HYD has a long way to go to say cheers. If you clearly see the HMDA auctions less than half of the plots are sold and remember that out of the sold plots half of the plots were sold for less than 5% of premium on top of Base price(10000.00 per sq. yd). ALSO ALL PRIVATE REAL ESTATE DEVELOPERS AND MARKETING PEOPLE MUST REALIZE THE FACT THAT HMDA PLOTS WERE FREE FROM LITIGATION (at least these plots) AND THEY SAID THEY WILL REGISTER RIGHT AWAY.
I appeal to my NRI friends not to carry away by this auction without critically analyzing the whole episode. Already HMDA is bombarding in the media that plots in Nallagandla sold for 17000.00 per Sq.yard(this is a GH plot facing 120 ft road) and the only one plot sold for this price. Buyer named Savita Garg she bought most of the GH plots in Nallagandla and all of them at high premium.
HMDA is using the same tactics like private players in the market.
I also want to share with the members here that real estate agents with vested interest raised the bar and inflated boom in Hyderabad using 2004/2006 HMDA auction. Most of the bidders in those auctions risked the loss of EMD and they never bought those plots. However, showing those prices as a benchmark they created inflated boom in HYD real estate. I know classic examples of atlease half of a dozen families who invested in those boom time and repenting it now.
Please try to follow simple thumb rule. Buy the plots today(July 13 2010) only if you want to built a house tomorrow (July 14 2010).
For investment purpose, go faraway from the city where you can buy few acres rather than yards. Or invest in your village in farmlands which is definitely worth considering.
Thanks raheem, it was quite an eye opener!!
I was considering the auction during the month of Feb 2011 for Nallagandla. Please advice whether there is any value in pursuing this auction.