Prices Of Muda Sites Auctioned Online Likely To Go Up Slightly, ET RealEstate

October 10, 2023

MYSURU: The revision of the guidance value of properties will have an impact on corner and intermediate sites being auctioned by Mysuru Urban Development Authority (Muda).

While authorities claimed there won’t be much impact on the number of sites being auctioned, they admitted it is likely to increase prices slightly.

In the recently held auction by the urban body, about 100 sites were put up for sale and a base price for two corner sites in Vijay Nagar IV stage was Rs 3.5 crore and Rs 2.9 crore and for four intermediate sites, the price was fixed at Rs 1.6 crore. According to real estate dealers, the market price of the sites in the locality is around Rs 4.5-5k per square foot. Muda’s auction price sets a benchmark for real estate at almost every locality where auctions are conducted, they said.

According to Muda authorities, approximately 70-75 % of sites put up for auction sell like hotcakes in the online auctions conducted every two to three months. Each time about 75-100 sites are put up for auction. This time, more sites in Hebbal State I and III, Dattagalli Stage III and Vijay Nagar IV Stage were put up for auction.

Muda commissioner GT Dinesh Kumar said the auction rates are fixed based on various factors including government guidance value for sites in each locality. “Muda has a committee to look into it and fix rates for sites for auctioning. We consider the rates of sites sold in the areas during the previous three auctions and the demand for sites there. Obviously, there would be a slight increase in the rates hereafter,” he said.

‘75% of sites sold in online auctions’

“On an average, about 75% of sites put up for auction are sold in the online auctions every time. They are sold beyond the base price. Since the process is online, the bidders quote beyond our expectation. The selling price of previous auctions are also taken into account while fixing the rates for the subsequent auction,” he said.

To a query, Dinesh Kumar said premium sites in layouts developed by Muda in the online auction are not overpriced.

  • Published On Oct 9, 2023 at 12:00 PM IST

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