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The recent revision of property guidance values is poised to exert an influence on the pricing dynamics of corner and intermediate sites available for auction through the Mysuru Urban Development Authority (MUDA). While authorities maintain that the quantity of auctioned sites won't undergo a significant alteration, they concede the likelihood of a modest increase in prices. The urban body organized a recent auction, listing approximately 100 sites for sale. Notably, the base price for two corner sites in the Vijay Nagar IV stage was firmly established at Rs 3.5 crore and Rs 2.9 crore, respectively, while four intermediate sites were pegged at Rs 1.6 crore.
However, real estate experts have drawn attention to the fact that the prevailing market price for sites in the same locality stands significantly higher, fluctuating between approximately Rs 4,500 and Rs 5,000 per square foot. They emphasize that MUDA's auction prices essentially set a benchmark for real estate in nearly every locality where these auctions are conducted. According to MUDA authorities, approximately 70–75% of the sites presented for auction witnessed brisk sales in the online auctions conducted every two to three months. In each of these auctions, which typically feature about 75–100 sites, a substantial portion is promptly sold.
During the recent auction, there was a notable increase in the number of sites offered in areas such as Hebbal State I and III, Dattagalli Stage III, and Vijay Nagar IV Stage. MUDA commissioner GT Dinesh Kumar elucidated that the rates for these auctions are meticulously determined, drawing from various factors, including the government's prescribed guidance value for sites in each locality. He emphasized that MUDA maintains a committee dedicated to the calibration of rates for the auctioned sites. This calibration process takes into account the rates at which sites were successfully transacted in the respective areas during the preceding three auctions, as well as the prevailing demand for sites in those locales. He anticipates a marginal uptick in rates in the foreseeable future.
On average, about 75% of the sites presented for auction secure buyers through online bidding. These auctions conducted digitally, often witness spirited bidding that propels the final sale price beyond the base price. Importantly, the prices realized in prior auctions also serve as a pivotal reference point in determining rates for subsequent auctions. Addressing inquiries, officials clarified that premium sites within layouts developed by MUDA and made available in online auctions are judiciously priced and do not exhibit any form of overpricing.
The revision in guidance values is expected to bring about nuanced alterations in the pricing landscape, potentially affecting property valuations in the region. Although these shifts are not anticipated to be seismic in nature, they underscore the importance for prospective buyers and investors to remain vigilant and well-informed about the evolving property value dynamics during MUDA's auctions.
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