ISLAMABAD: Capital Development Authority (CDA), on the opening day of a two-day auction, received an overwhelming response from investors as it auctioned 13 commercial plots worth over Rs20 billion on Wednesday.

The CDA has put 29 plots on sale at the auction; on the first day, all 13 plots were successfully auctioned at Jinnah Convention Centre.

The authority in its annual budget for the ongoing fiscal year 2021-22 had estimated a Rs20 billion receipt from this two-day auction but it achieved this target on the first day.

“The response of the investors remained very good as on the opening day we achieved our targets. CDA is thankful to people who had invested with us and reposed their trust. Our every auction sets a new record,” said CDA Chairman Amer Ali Ahmed.

Civic body fetches over Rs20bn on first day

Speaking to Dawn, he said the funds generated from this auction would be spent on welfare projects.

“Our residential sector I-12 has been stalled since long. I have directed the finance wing to deposit a major portion of amount from this auction in a separate account for development of I-12 sector to add thousands of new housing units for the city,” he said, adding that a green fund would also be established to protect green areas, and tree covers and funds would be spent for improving water infrastructure of Islamabad.

According to details, four commercial plots in I-8, two plots in G-10 Markaz, a plot in F-11 Markaz, two in I-12 Markaz and four plots of Blue Area were auctioned on the first day. Commercial plots, which are being auctioned, include commercial/shopping centre plots and plots for hospitals, petrol pumps, hotels, apartments and shopping centres.

CDA officials said until 2019, the civic body used to fetch less than Rs10 billion in auctions, however, in 2019, it earned Rs11 billion followed by the record auction of last year, in which plots worth Rs27 billion were auctioned.

“Last year, we auctioned plots worth Rs27 billion in three days. And on the opening day of this two-day auction, response of investors was overwhelming so hopefully we will set a new record on Thursday,” said an official of CDA, adding that four costly plots of Blue Area and two in D-12 are also amongst the remaining plots, which will be auctioned on Thursday (today).

Another official said besides other factors, prime minister’s package for the construction industry and civic agency’s new polices including a 10pc discount on full payment and streamlining of approval of building plans also played a role in attracting investors.

Published in Dawn, August 5th, 2021