News: Despite Slump, Huda Nets Rs 611cr In Realty E-auction-28.03.2017
Despite slump, Huda nets Rs 611cr in realty e-auction
Bagish Jha| TNN | Updated: Mar 27, 2017, 12.50 AM IST
GURUGRAM: While the state of the real estate market for private developers is quite dismal — there's little demand for a huge inventory of finished or near-finished homes — the government's developer Hudais still managing to attract buyers for its commercial and residential properties. Between May 2016 and February 2017, Huda has successfully raised Rs 611 crore by selling its properties through e-auction.
In the last 10 months, Huda listed 936 properties for auction, of which Huda sold 216 and collected Rs 611.29 crore, much more than the total reserve price for the properties, estimated at Rs 505.27 crore.
"We've been receiving very good response through e-auction of properties. Most are being sold above the reserve price," said Huda administrator Yashpal Yadav.
Even demonetisation failed to affect the e-auction of Huda's properties. According to documents available with TOI, the agency managed to collect around Rs 240 crore through auctions in December, January and February, when the cash crunch due to demonetisation was at its peak. In February alone, Huda managed to collect Rs 169.28 crore from the auction of 111 commercial and residential properties. "We do not deal in cash, all our transactions are done through cheques or RTGS," said an official.
Highlighting a big ticket auction, a Huda official said, "In November 2016, Hyundai purchased a 7,820.80 sq m plot in Sector 29 for Rs 205.88 crore to build its new office."
In September, Huda collected Rs 135 crore from auction of three plots for schools. Five acres of land reserved for senior secondary schools in sectors 47 and 56 were sold for Rs 60 crore each. The reserve price for each was Rs 34 crore, but they were auctioned for much higher. Another 1.25 acre plot in Sector 52, reserved for a primary school, was sold for Rs 15.5 crore.
Decoding the reason behind Huda's success, despite demonetisation, real estate expert Pradeep Mishra said basic difference between property dealing of private developer and Huda is transparency and the agency's avoidance of cash in its dealings. "Huda sells property at fixed reserved price through public auction. The payments are done through cheques, while in case of private developers, there is a difference between the amount paid by buyers and the price at which the property is registered," said Mishra.
