In an auction for nine hotel plots that lasted about an hour, the Delhi Development Authority failed to receive a single bid as hotel developers stayed away, citing unattractive locations and in some cases high reserve prices. The auction concluded a two-day attempt by the land agency to sell 19 plots, of which only three were sold.
According to a poll of hoteliers, developers and analysts by Mint, DDAs poor choice of location emerged as the single biggest factor keeping buyers away. This is in spite of some lots being priced as low as Rs14.15 crore for about a third of an acre, or about Rs33 crore per acre. Most of the plots were located on the citys outskirts in areas like Rohini, Dwarka and Mayur Vihar. In less peripheral areas of Delhi, although not prime ones, land has previously been sold for twice that price an acre.
Those places which they were auctioning were not right for a hotel but I thought there were a lot of crazy guys in the market who would be willing to pay outsized prices, said a senior official with the Eros Group, who declined to be named saying said he didnt want to appear in media reports.
More : livemint.com