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In a surprising turn of events, the Chief Minister of Andhra Pradesh, YS Jagan Mohan Reddy, is anticipated to operate from the bustling port city of Visakhapatnam during the festive season of Dasara. However, this development has failed to instil confidence in the local real estate sector, as evidenced by the lacklustre response to the Visakhapatnam Metropolitan Region Development Authority (VMRDA) land auctions.
VMRDA had scheduled the auction of 14 substantial land parcels on September 29 and 30, with the intention of generating a substantial sum of 1,300 crore through the sale of 87.8 acres of land in the upscale Madhurawada area. To everyone's surprise, the response from potential buyers has been far from encouraging, despite the relatively modest price tag of 30,000 per square yard set for the auction.
This unanticipated outcome has left VMRDA officials bewildered, especially considering that smaller plots in the Madhurawada area have historically fetched prices nearing 1 lakh per square yard in VMRDA auctions. However, the past year has presented a starkly different narrative for the urban development body when attempting to sell land across various parts of the combined Visakhapatnam district.
A case in point was VMRDA's attempt to sell 10 bulk land parcels, totalling approximately 24 acres, in August 2022, which received a lukewarm response from potential buyers. In 2023, the authority tried once more by offering a 10 percent price reduction for the same land parcels, with a fixed upset price of 40,000 per square yard in Madhurawada in 2022, reduced to 36,000 in 2023. Unfortunately, even these reduced prices failed to ignite enthusiasm among bidders.
Furthermore, a similar pattern emerged in the Thummapala area, where the bulk land price was slashed from 8,000 to 7,200 per square yard in 2023, yet failed to stimulate significant interest among investors.
Meanwhile, VMRDA has persisted in conducting auctions for vacant plots and miscellaneous sections within layouts developed over the past five decades. While some plots have attracted bids at premium prices, occasionally double the upset prices, others have received a tepid response.
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