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Nirma Group buys 13,476 sq metre plot in Ahmedabad for Rs 213 crore

AHMEDABAD: The much-awaited municipal plot e-auction received a subdued response on Thursday with only one developer, Nirma Group having bought a plot out of the three that were up for auction.

The plot was in a posh locality just behind the Rajpath club admeasured 13,476 square metre (sqm) and was offered by AMC at a base offset price of Rs 1.59 lakh per sqm, which translates to Rs 213 cr. If sources are to be believed, Nirma Group is exploring opportunities in real estate business. It has already supported one commercial real estate project in posh Ambli area of the city.

When the auction began at 11am there were initially eight bidders. But strangely, the seven bidders remained inactive online while Nirma quoted Rs 300 per sqm extra over the base rate and bagged the deal for Rs 213.45 cr. On Wednesday, the AMC had in a press release claimed that some 56 persons had shown interest in Thursday’s e-auction. A sluggish realty market is being reasoned for the lethargic response.

Another AMC plot of 13,222 sq m located off the posh Sindhu Bhavan Road where commercial plots had been sold at rates that touched anywhere between Rs 1.7 lakh per sq m to Rs 2.5 lakh per sq m last year —bidders were seen online but they chose to remain inactive even as the AMC quoted a base offset price of Rs 1.59 lakh per sqm. This plot too remained unsold. The third plot, admesuring 15,351 sq m was located in another posh locality on Sola Science City Road and was being offered at base rate of Rs 1.59 lakh per sq m. This plot too did not find takers.

A senior AMC official said that the e-auction was transparent and that no one knew the other bidding parties online. “There is absolutely no question of builder cartels operating to force the AMC to lower the base rates even further. The e-auction was taking place on a transparent platform,” said the AMC official. Sources also claimed that the rate received by the corporation is average and it could have fetched better prices if the market sentiment was bullish.

There are 35 interested developers for Friday’s auction of two plots located in Gota and Nikol areas. “These plots are relatively small and we hope we will be able to get a better price,” said an AMC official.

“The real estate sector did not receive a mention in the recently presented Union Budget. The sector has been going through a tough phase. As a result, the real estate developers have become risk averse,” said a real estate developer.


February 07, 2020

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