CHANDIGARH: Following a remarkable turnout at the recent auction for residential properties, the UT estate office plans to conduct property auctions quarterly.
Nishant Kumar Yadav, the deputy commissioner and estate officer, stated, “We are in the process of developing a calendar for property auctions. This schedule will ensure that vacant properties held by the estate office are regularly auctioned, allowing interested buyers to participate. This approach aims to enhance the availability of properties in the city to meet growing demand.”
In the latest freehold residential property auction, every residential site was sold. Notably, a property in Sector 33, covering 1014 sq yards, was auctioned for Rs 33.4 crore, significantly surpassing the reserve price of Rs 14.9 crore. The smallest residential property of 126 sq yards had a reserve price of Rs 1.7 crore but was sold for Rs 4 crore.
The auction resulted in a total revenue of Rs 168.85 crore, with a reserve price of Rs 75.29 crore, indicating a growing confidence among citizens and investors in Chandigarh’s real estate market.
Out of 20 offered sites, all 13 residential properties were successfully auctioned, while only two from seven commercial leasehold sites found buyers.
Interest in leasehold sites remains low. Not only the estate office but also bodies such as the Chandigarh Housing Board (CHB) and the municipal corporation face difficulties in attracting buyers for leasehold properties.
A UT official explained, “For a commercial leasehold property valued at Rs 20 crore, the annual lease amount would be around Rs 50 lakh, increasing every 33 years. Furthermore, unlike freehold properties, leasehold properties do not offer ownership rights, restricting property transfers and the ability to secure loans. Allottees cannot convert their leasehold properties into freehold, making them less appealing to potential buyers.”
Last year, the Ministry of Home Affairs advised the administration against offering its commercial properties on a freehold basis.
