The bids at the recent auction of corner sites conducted by the Mysore Urban Development Authority (MUDA) has, apart from raising eyebrows in Mysore, could impact the realty market, particular of sites here.
Post-auction sentiments indicate that the unbelievably high prices offered by some bidders could push up the site values in the realty market, which otherwise has taken on a downward swing after the market boom a little over a year ago.
A corner sites auctioned on January 29 made the the fund-starved MUDA richer by an unexpected yield of Rs 2.10 crore. The 50 x 80 ft site is in the Vijayanagar 1st Stage, one of the new extensions that came up a few years ago, towards Hunsur. The record final bid was three times the MUDA minimum offer value of Rs 80.68 lakh.
MUDA is richer by Rs 15 crore from the auction of the 25 corner sites in the two extensions of Vijayanagar 1st Stage and Hebbal 2nd Stage. Around 200 bidders, including women, participated in auction. MUDA officials led by commissioner P C Jayanna had made elaborate arrangements for the auction in a transparent way.
The price of sites had slid during the recent recession. Site values had risen with prospective investors and the estate mafia manipulations, apart from the image boost the city got. Several NRIs invested in the market setting their eyes on Mysore’s future growth. But the global recession put paid to their hopes and the market correct 30-40 per cent. Particularly hit were the apartment builders.
While a recovery appeared to be round the corner, the huge amounts offered for the MUDA sites has enthused builders and those eager to make a fast buck selling their property. It is bound to push up the prices, at least in the Vijayanagar layout, and the MUDA may set its minimum rates at higher values in the coming auctions.
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While a resident of the Vijayanagar 1st Stage has reacted by saying that he was “amused a site in my area could be worth so much and sad with such display of wealth,” a broker suspected the hands of a politician in that particular site being valued so high.
“It will not impact the market,” remarked leading developer M B Nagakumar. Reacting to the unbelievably high Price offered for the particular site, he said, “It is definitely not the benchmark and it cannot be.” “Probably, the particular bidder was keen on that site irrespective of the cost and he has paid that and there cannot be anything beyond this,” he said, though he welcomed it as a good sign for the Mysore market. “It shows people are looking at Mysore again,” he told Business Standard.
Mysore market was down 25-30 per cent and it has regained 10 per cent and the higher bids could help further recovery, Nagakumar added.