- November 1, 2023
- Posted by: Muhammad Shehzad
- Category: RBS News
On the third day of the auction organized by the Capital Development Authority (CDA), there was significant demand for small commercial plots, as reported in the news on October 20th.
On the third day of the auction, reports indicate that a compact 150-square-foot plot, intended for fruit, vegetable, or meat trading, successfully sold for approximately PKR 50 million. The CDA, which already auctioned eight commercial plots for a total of PKR 10.9 billion in the initial two days of the event. This auction introduced these small 150-square-foot plots to the bidders. They quickly became a sought-after choice among investors.
The CDA’s planning division had earmarked three small markets in F-6, F-8, and G-11 specifically for fruit, vegetable, and meat vendors, each featuring six plots, each measuring 150 square feet. This move sparked intense competition within the business community, resulting in the auctioning of all shops in the F-6 sector and the rapid sale of three out of six in the F-8 market.
Today marks the conclusion of the auction, featuring the remaining available plots. Notably, the CDA managed to secure an impressive sum of PKR 47 million for a particular plot, while others commanded prices at or exceeding PKR 24 million.
CDA Collaborates as the Custodian of Islamabad’s Land
The CDA, known for its long-standing role as the custodian of Islamabad’s land resources, has traditionally relied on land auctions to fund both its development and non-development expenses. This development given the absence of alternative revenue sources.
However, CDA officials are becoming increasingly concerned about the sustainability of this approach. There are calls for the agency to explore other income-generating avenues. These avenues include the development of hotels and commercial centers, in order to establish a stable source of income.
While the CDA has commenced work in certain sectors as achieving substantial progress has proven to somewhat challenging. There have no entirely new sectors developed in the past two decades, except for D-12. Despite these concerns, a CDA official underscores the agency’s crucial role. This role provides commercial and residential plots to both investors and citizens as part of the planned expansion. This expansion stimulates the economic activity of the city as well.
The ongoing auction is viewed as a ray of hope for the CDA, which has been grabbling with financial constraints. Reports indicate that the civic agency presently holds approximately five billion rupees in its accounts. It also faces liabilities amounting to billions of rupees linked to ongoing development projects.
In light of these financial constraints, the management recently made the decision to allocate available funds exclusively to ongoing projects. These projects postpone the commencement of new development ventures. The CDA’s management anticipates a much-needed financial boost from the four-day auction. The hope of generate around Rs20 billion to alleviate their financial challenges.
Stay tuned with RBS for further inquiries.