HMDA puts prime lands on sale to generate revenues for govt

To mop-up revenues for the cash-strapped State government, the Hyderabad Metropolitan Development Authority (HMDA) is gearing to sell prime lands in the city yet again. As per the schedule announced by the urban development authority, e-auctions will be conducted for various land parcels totaling 44 acres in Kokapet, Moosapet from Nov 24 to Dec 5. HMDA is eyeing Rs5,000 crore revenues from the land sale.

Among those on offer are three land parcels in Neopolis Layout at Kokapet, covering about 27 acres adjacent to the Financial District. With an upset price of Rs99 crore per acre, the parcels, situated in Survey Nos. 239 and 240, will go under the hammer on November 24, 28, and December 3. HMDA officials have highlighted that the lands are litigation-free, construction-ready, and backed by clear titles. The plots also benefit from proximity to key IT and business hubs

In the Golden Mile Layout near the IT corridor, HMDA has listed 1.98-acre parcel with an upset price of Rs70 crore per acre. Further west, two large plots in Moosapet- spanning 14.66 acres- are on salewith an upset price of Rs75 crore per acre.

The HMDA has ensured complete transparency in the auction process, which will be conducted online through MSTC Limited. A mandatory earnest money deposit of Rs5 crore per plot has been fixed, and a pre-bid meeting is scheduled for November 17 at T-Hub, Raidurg. Authorities have assured that all plots come with clear titles and single-window approval mechanisms to facilitate quick project kick-offs.

These land auctions come close on the heels of theTelangana Industrial Infrastructure Corporation (TGIIC) several land parcels including the one at Raidurg which fetched a record Rs177 crore per acre. It was bought by MSN Realty, the new cash-rich kid on the block in the Hyderabad real estate.

Developers say such frequent auctions don’t augur well for the Hyderabad real estate which has been reeling under a severe sales crunch for the past three years. Till recently, the Hyderabad real estate market was the most affordable one for common people among all metros. That was the reason why end users used to lap up new homes, thereby realizing the dream of owning a house. Thanks to such auctions by the government for short term gains and unlimited FSI norm which is putting heavy pressure on the infrastructure, Hyderabad has become unaffordable for many.

These days, even some investors are shunning this market as concerted efforts are underway to artificially jack up prices which may not sustain in long run.

Inexperienced developers who are entering this segment with loads of cash are also spoiling the market, developers say.