| Islamabad: During the third day of the auction being held by the Capital Development Authority (CDA), small commercial plots were high in demand, according to news published on October 20.
Read: Highest bid of PKR 1.42 bn for plot creates buzz for CDA’s 4-day auction
On the third day of the auction, the sources reported that a small plot of 150 square feet (around half a marla) specified for fruit/vegetable/meat trade was sold for PKR 50 million (approx). The authority, after auctioning off eight commercial plots during the first two days of the auction for PKR 10.9 billion, presented small plots of 150 feet for bidders and they proved to be extremely popular among investors.
The CDA’s planning wing had designated three small markets in F-6, F-8, and G-11 specifically for fruit, vegetable, and meat shops, with each market housing six plots, each measuring 150 square feet. This offering led to fierce competition among the business community, with all shops in the F-6 sector getting auctioned, and three out of six in the F-8 market being swiftly sold off.
The auction is set to conclude today with the remaining plots up for grabs. Notably, the CDA secured the highest price of PKR 47 million for one plot, while others fetched prices at or above PKR 24 million.
The CDA, a long-standing custodian of Islamabad’s land bank, has traditionally relied on land auctions to meet its development and non-development expenses, as it lacks alternative methods for generating funds. However, concerns are rising among CDA officials regarding the sustainability of this approach, with calls for the agency to explore alternative revenue streams such as the development of hotels and commercial centres to secure a regular income.
Read: CDA, WAPDA collaborate for construction of Dotara Dam
While the CDA has initiated work in certain sectors, significant progress has been somewhat elusive, with no entirely new sectors developed over the last two decades, aside from D-12. Despite such concerns, an officer of the CDA emphasizes the agency’s vital role in providing commercial and residential plots to investors and citizens as part of planned city expansion and to stimulate business activity.
The ongoing auction is seen as a beacon of hope for the CDA, which has been grappling with financial constraints. Sources reveal that the civic agency currently holds around five billion rupees in its accounts, while it faces liabilities amounting to billions of rupees associated with ongoing development projects.
Given this financial squeeze, the management recently decided to allocate available funds exclusively to ongoing projects and defer the initiation of new development endeavours. The CDA’s management anticipates a much-needed financial boost from the four-day auction, with expectations of generating approximately Rs20 billion to alleviate their financial pressures. |
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