Andhra Pradesh Housing Board back with plot auctions

HYDERABAD : As signs appear of the real estate scene picking up, the Andhra Pradesh Housing Board (APHB) has decided to resume auction of plots in the city after a gap of four years. In the current phase of auction, which will take place on November 22, the board will put up 14 plots for auction in Kukatpally Housing Board (KPHB) Colony phases 4, 6, 9 and 15.

Nine plots are located in phase-15 of KPHB, close to Hi-Tec City , while there are two plots each in phase-9 and phase-6 and one in phase-4. Since the plots are in Kukatpally, the authorities are hoping to pocket about Rs 100 crore through the auction.

Officials said the APHB took the decision to auction plots after Hyderabad Metropolitan Development Authority (HMDA) auctioned some of its plots in August and could raise about Rs 125 crore.

APHB has carefully chosen plots to put up for auction. Of 14 plots, four plots are High Income Group (HIG), six plots for Middle Income Group (MIG) and three plots for Low Income Group (LIG) with size between 647 square yards and 200 square yards. Two plots are 60 sq yards with unequal sizes in corners.

Also, the upset price has been fixed between Rs 20,000 and Rs 40,000 depending on the area and size of the plots.

“APHB has high hopes on phase-15 plots as during the last auction in 2007, the highest rate per sq yard was Rs 32,000. We are expecting an overwhelming response from property buyers this time too,” an executive engineer of KPHB (West division) told TOI.

Officials said the prospective buyers have to submit their bids in a sealed cover and participate in the auction on November 22. The successful bidder would have to deposit 25% of the bid amount and 1% auction expenses of the total bid amount within 24 hours of the auction. The balance amount could be paid within three months of the auction. If there is any delay, beyond three months, 14% interest would be charged on the remaining amount.

APHB officials said the land should be utilised as per the norms and with the permission of the civic authorities. If any, electricity, water and telephone lines or poles were passing through it, it would be the responsibility of the purchaser to get them removed from the plot at his/her own expenses, they said.

During the real estate boom, sources said, the APHB had auctioned nearly 500 acres of government land as part of resource mobilisation between 2004 and 2007 and pocketed nearly Rs 750 crore. Of 500 acres, 300 acres were auctioned in and around Hyderabad and it earned Rs 600 crore since 2004.

If the current land auctions prove to be good, the Board would take up more auctions in the near future, the sources said.

Source