Rajkot realties look up, RMC auction rates peak

Rajkot Municipal Corporation (RMC) has added Rs 4.72 crore to its balance sheet by auctioning a piece of land near Ashtron cinema.

The land is situated in the heart of the city's commercial area. The land, measuring 1,498 sq mtr was auctioned at a record Rs 31,500 per sq mtr rate. This is the highest rate fetched by the Rajkot civic body in the open auction held yesterday.

There were 11 builders participating in the auction, and one Mumbai-based builder, Himanshu Modi, putting the highest bid finally purchased the land.

This contentious plot was proposed for sale by RMC in 1990-91 at the rate of Rs 11,000 per sq mtr. But the auction got bogged down in a court case. But recently, the court lifted its stay order clearing the way for RMC to sell the land.

RMC has earlier called the bid starting at Rs 22,000 per sq mtr but finally it could seal the final bid at Rs 31,500 per sq mtr. For the last five years, the real estate market in Rajkot was very depressed, dull and inactive.

There were crores of rupees trapped in various projects by builders. But now the real estate market is looking up again as was witnessed in the aforementioned deal fetching record money for the civic body.

This auction will spark off a new speculative trend in the Rajkot realty scene, said Arjun Khataria, a leading land broker of Rajkot.

During the last 12 months, Rajkot district has witnessed transactions worth Rs 1,000 crore in real estate, and it has been estimated that nearly Rs 600 crore worth of business was done in the Rajkot city itself.

The northwest of the city is witnessing a very fast development, and a choice destination for investors.

Kalawad road, Raiya road and areas in the vicinity are in big demand and the land rates are ruling in the Rs 2500-7500 per sq mtr range. Most of the new, modern housing projects are coming up in this area.