MOHALI: In a significant move to monetize stalled public assets and rekindle buyer interest, the Punjab government has sanctioned a notable reduction in the reserve prices for properties listed by the Greater Mohali Area Development Authority (Gmada) that have failed to attract buyers over the years. The new policy indicates an average drop of 22% in the reserve prices for these unsold properties, a change anticipated to generate revenues between Rs 5,000 crore and Rs 10,000 crore.
The announcement, made by Finance Minister Harpal Singh Cheema, followed the establishment of a committee tasked with evaluating government-owned properties that remained unsold after multiple auctions. The committee determined that many properties were not auctioned due to excessively high reserve prices. Acting on its recommendations, the government opted to adjust the pricing to facilitate the sale of these assets.
Officials noted that Gmada’s unsold inventory comprises residential plots, commercial booths, group housing sites, industrial and institutional plots, and hotel sites, many of which have gone unsold for over five years despite several e-auction attempts.
The newly approved policy will extend across development authorities, including Gmada, and will encompass residential, commercial, industrial, and institutional sites.
Cheema elaborated on the framework, revealing that a committee of three independent valuers, chosen from Gmada-Puda’s empanelled list, was appointed. “The reduced pricing mechanism applies only to properties that have failed to sell in two or more consecutive e-auctions. A 22% reduction in reserve prices was approved based on the committee’s report,” he explained.
According to the policy, the average value determined by the three independent valuers will be set as the new reserve price, pending approval from the relevant authority. These revised prices will remain in effect for one calendar year. If properties still remain unsold, an additional 10% reduction may be applied, followed by another 5%, subject to necessary approvals.
The government stated that this initiative aims to align reserve prices with current market conditions, rekindle buyer interest, and alleviate fiscal pressures on the state. This policy is part of a broader strategy to monetize stalled public assets and create new opportunities for investors and end-users to secure properties at more reasonable prices.
Stakeholders in the real estate sector believe that this decision will significantly benefit Gmada and expedite transactions within the real estate ecosystem. The forthcoming auctions, led by Gmada under the housing and urban development department, are being touted as one of the largest government-led real estate monetization initiatives in North India in recent years.
