ISLAMABAD: The latest auction of commercial plots conducted by the Federal Government Employees Housing Authority (FGEHA) has set a new trend in recent history as all seven plots received bids very close to their reserved prices.

Sources said the FGEHA placed the bids before its executive board for approval.

However, the board, surprised by the narrow difference between the bid rates and reserved prices, deferred the matter.

The auction of commercial plots in sectors G-13 and G-14 was held on June 18 and 19 this year, and the highest bids were presented before the executive board meeting in the last week of August.

Executive board refers matter to committee after bids spark concern over new market trend

According to officials, the FGEHA had placed 24 plots of varying sizes and categories for open auction. These included Markaz plots, Class III shopping centre plots and mixed-use building plots in G-13 and G-14. Out of the 24 plots, seven were auctioned. Six were sold at very narrow margins above the reserved price, while one was auctioned at exactly the reserved price.

The executive board is the competent forum to approve or reject the bid rates. FGEHA officials said the board formed a three-member committee to look into the “procedure and process.”

Providing details of the bids, sources said a 400-square-yard plot received a bid of Rs650,000 per square yard against the reserved price of Rs645,000. Another 400-square-yard plot received a bid of Rs650,000 per square yard, matching the reserved price.

A 2,000-square-yard plot also received a bid of Rs675,000 per square yard, exactly equal to the reserved price. Similarly, another 400-square-yard plot fetched Rs655,000 per square yard against the reserved price of Rs650,000, while another 400-square-yard plot was bid at Rs710,000 per square yard against the reserved price of Rs665,000.

Sources further said a 210-square-yard plot received a bid of Rs710,000 against the reserved price of Rs700,000, while a 667-square-yard plot was bid at Rs715,000 compared to the reserved price of Rs700,000.

An official source said that although there is no legal bar on selling plots with a narrow margin over reserved prices, the bids received in this auction set a new trend.

He added that in previous auctions, the FGEHA had secured higher rates. The official noted that the executive board, headed by the federal housing minister, is the competent authority to approve or reject the bids and will decide the matter based on the committee’s recommendations.

However, FGEHA spokesperson Fiaz Ahmed Sial said the board had not deferred the matter but referred it to the committee to review the process. “Our auction was held in a transparent manner and all plots were auctioned above the reserved price. In the current market scenario, meeting the reserved price is itself a success,” he said.

He added that the board had neither rejected nor deferred the bids but only sought the committee’s review. “We conducted the auction after a massive media campaign and it was open to all. Videos of the entire proceedings are available. There is no question of wrongdoing. Not at all. We have a very transparent system in place,” he said.

According to the spokesperson, the prevailing market trend was a major factor behind the bid rates. “Secondly, the timing of the auction in June could also have contributed to these results,” he added.

Published in Dawn, September 18th, 2025