ISLAMABAD: The city managers not only succeeded in wooing the disgruntled investors to participate in the auction of commercial plots but also saw builders and developers offering higher than usual prices.

The two-day auction of commercial plots opened at the Convention Centre on Wednesday.

A couple of days back, a group of builders and developers had threatened that they would boycott the auction if the Capital Development Authority (CDA) did not provide them all the building parameters which it had allowed to certain favourites.

“We had decided not to participate in the auction but the chairman and the members CDA board assured us that they would look into our grievances and seek a way out,” said Mohammad Qadir, a key member of the newly-formed association of builders and developers of Islamabad.

On the first day, six plots went under the hammer for around Rs2.7 billion, which is a record compared to Rs2.5 billion in the last auction held in November 2013.

“The plots had been carefully selected and despite fears from some quarters that the auction could hit snags, the turnout was impressive and the response heartening for the CDA,” said Amer Ali, the CDA member administration.

The most attractive offer by the authority was a restaurant plot at E-7 Sector, which is also the first such offer in that sector. The plot situated street 11 and 14 measuring 222.22 square yards fetched Rs122.22 million.

While the costliest bid was offered at Rs833.33 million for a 1,333.33 square yards plot in Blue Area.

The other plots to go under the hammer in the auction included an irregular plot in F-11 Markaz measuring 1,699.33 square yards for Rs744.30 million. This plot failed to attract the investors in the previous auction.

A group of old-time real estate builders bid the highest amount of Rs660.16 million for an 837.77 square-yard plot in F-7 Markaz, whereas a 600 square-yard commercial plot in G-9 Markaz was sold for Rs254.40 million.

The smallest plot offered on the first day of the auction fetched Rs69.49 million. This 166 square-yard plot is located in a market at F-11/1. The CDA has two more similar plots which are likely to be offered for sale on Thursday (today).

As the investors continued to compete for higher bids, the authority decided to call off the auction of plot number 6, F-10 Markaz, on the grounds that the offer of around Rs2 billion was below the expectations.

The status of the commercial plot has been changed to residential on the directives of the Islamabad High Court.