Real estate prices in the state hit a new high.
Life Insurance Corporation (LIC) has outbid private real estate players in the land auction of commercial areas by the Punjab Urban Planning and Development Authority (PUDA) and Greater Mohali Development Authority (GMADA, which was carved out of PUDA). This has taken real estate prices in the state to a new level.
Recently, PUDA auctioned 3.60 acres (17,425 square yards) of the Old District Courts Complex in Ludhiana. The highest bid for the land offered by Life Insurance Corporation of India was Rs 1.31 lakh per square yard as against the reserve price of Rs 1 lakh. The state has got Rs 228.26 crore through this auction.
The other five participants included Tata Realty and Infrastructure, Best City Realtech, AERENR Enterprises, Malhotra Land Developers and Inderpreet Singh Chadha.
The chunk of land, put under the hammer, was handed over to PUDA by the state government for commercial exploration under the “optimum use of government vacant land” policy. The property would be used for commercial purpose.
In an earlier auction, LIC took possession of 16, 973 square yard of land in Bathinda by offering Rs 45,100 per square yard as against the reserve price of Rs 30,000 per square yard. The state managed to secure Rs 76.54 crore through this auction. Furthermore, a commercial site in Amritsar belonging to Amritsar Improvemnt Trust was bagged by LIC.
GMADA had auctioned 9.6 acres at Mohali (Punjab) for Rs 464.12 crore as against the reserved price of Rs 464 crore. The deal was clinched by Life Insurance Corporation of India (LIC) which was the sole bidder. LIC had offered Rs 1,00,025 per square yard as against the reserved price of Rs 1 lakh.
The site fetched GMADA Mohali only Rs 12 lakh more than the original reserved price of Rs 464 crore. The property purchased by LIC could be used for industrial purpose or for constructing multiplexes, shopping malls or luxurious hotels.
Apart from LIC, Amritsar also attracted Tata group in the auction. A recent auction of a plot measuring 5.54 acre in Amritsar had attracted Rs 179.46 crore.
Tata group bagged the possession of 5.54 acres in the prime location of Amritsar by shelling out Rs 180 crore as against the reserve price of Rs 164 crore.
PUDA, which had fixed a price of Rs 60,000 per sq ft for the site, earned Rs 67,000 per sq ft. The land will be used for constructing multiplexes, shopping mall and wedding palace.
