ISLAMABAD, June 8: After a long delay the city managers on Friday auctioned the plot of Margalla Towers, which partially collapsed during 2005 earthquake, for over Rs1.6 billion.

The plot measuring 11,750 sq yard in F-10 Markez was sold at the rate of Rs141,000 per sq yard at  the auction conducted by the Capital Development Authority (CDA).

With the auction of the plot, the haunting structure of Margalla Towers located in the centre of the capital will be demolished and in its place a new building will be constructed.

However, some of the CDA’s officials believed that the price offered for the plot was still low as it did not match the amount the CDA had already paid as compensation to the owners of the apartments.

The CDA had paid Rs1.75 billion to the owners on the directives of the Supreme Court in 2010. Margalla Towers had lost one-and-a-half block in the earthquake in which 74 of its inhabitants were killed.

“We will put the bid before the CDA board,” said the CDA’s Member Planning Aziz Qureshi.

The CDA had also tried to sell out Margalla Towers plot in 2010 but the highest bid amounting to Rs1.3 billion that was rejected by the CDA.

Meanwhile, two day auction of commercial plots has showed upward trend in the real estate market in the federal capital as the CDA received record bids.

In the two days auction the civic agency sold six commercial plots and fetched over Rs5 billion.

A plot No-11A in F-10 Markez measuring 900 sq yard was auctioned at ever highest bid of Rs361,000 per sq yard. It means that the successful bidder purchased the plot for Rs324 million.

Another plot in Blue Area close to sector G-8/F-8 measuring 2,666 sq yard was auctioned at Rs791 million with ever highest bid in this area of Rs 297,000 per sq yard. Previously, the highest bid for Blue Area plot was Rs261,000 per sq yard.

“The high bids for commercial plots indicates that real estate market is improving in Islamabad,” said a bidder Abdul Qadir.