Bangalore: A land auction in the Bandra-Kurla Complex (BKC), a prime business district in Mumbai, didn’t attract a single bid on Wednesday.
Property consultants say the reserve price of Rs3 lakh per sq. m was too high in a market that’s just recovering from the slowdown. The 3,162 sq. m land is meant primarily for developing office buildings. “The price is steep. And since there is much supply in the market, why would there be enthusiasm for a land at this cost?” said Akshaya Kumar, chief executive, Parklane Property Advisors.
Nodal agency Mumbai Metropolitan Region Development Authority (MMRDA) conducted the auction nearly two years after its previous attempt in early 2008, when it could sell only three of five plots.
Dilip Kawathkar, a spokesman for MMRDA, said the price wasn’t high but developers were still not confident about buying expensive land. “We will take a call on what to do with this land,” he added.
The Railway Land Development Authority (RLDA), too, it trying to auction land in BKC after failed attempts earlier. RLDA has called for expressions of interest from developers for a 45,371 sq. m plot that it had tried to auction in 2008 at a reserve price of Rs3,960 crore. “Not many people seem to be interested,” said a senior RLDA official from New Delhi on condition of anonymity.
The previous big-ticket auction was in January, when developer Vijay Wadhwa paid Rs571 crore to Hindustan Composites Ltd for an 18-acre plot in suburban Mumbai, at Rs78,387 per sq. m.