HMDA Land Auctions Collapse: Zero Sales in Rangareddy Despite 93 Plots Offered

HMDA Land Auctions Collapse: Zero Sales in Rangareddy Despite 93 Plots Offered

HMDA Land Auctions Collapse: Zero Sales in Rangareddy Despite 93 Plots Offered The Failed Auction Event Hyderabad Metropolitan Development Authority's (HMDA) return to land auctions after a two-year break ended in a shocking failure last week. Authorities offered 93 prime plots across Rangareddy and Medchal-Malkajgiri districts, including 70 plots in Bachupally, 12 in Turkayamjal, and smaller clusters in Kokapet, Poppalguda, Chandanagar, and Bairagiguda, but saw zero sales. Surprisingly, Turkayamjal attracted just two bidders for its entire 12-plot inventory. HMDA stayed silent after the auction, breaking its long-standing tradition of immediate press releases.

Pricing That Priced Out Buyers

Internal documents show HMDA's pricing strategy failed, with upset rates ranging from ₹35,000 to ₹1.75 lakh per square yard:

  • An 8,591 sq yd parcel in Bachupally: ₹1.75 lakh/sq yd (₹150+ crore total)
  • 1,630 sq yd plot in Poppalguda: ₹1.20 lakh/sq yd
  • 484 sq yd Chandanagar parcel: ₹1.05 lakh/sq yd
  • Remaining plots: ₹35,000-₹70,000/sq yd

These figures are based on pre-auction brochures, exceeded market valuations. "Developers won't start work on plots when land costs exceed construction budgets," remarked a Gachibowli-based property analyst who asked for anonymity. Industry whispers confirm institutional buyers wanted 20-30% lower prices, given current market corrections.

Why This Failure Matters

The auction's failure carries multi-layered implications:

  • Revenue shortfall: State coffers miss estimated ₹500+ crore from these sales
  • Policy credibility: Undermines Telangana's aggressive land monetisation strategy
  • Market sentiment: Signals affordability crisis in Hyderabad's periphery

HMDA Commissioner Sarfaraz Ahmad's refusal to comment speaks volumes. Insiders cite "untimely scheduling amid monsoon season and irrational pricing models" as dual culprits. This contrasts sharply with HMDA's upcoming Neopolis Kokapet auction targeting ₹5,000-₹10,000 crore through just five premium plots, suggesting authorities might finally grasp the need for strategic selectivity.

What's Next for Hyderabad's Land Market

Smart investors should note three emerging patterns:

  1. Location stratification: Core areas like Kokapet's "Golden Mile" still attract bids while peripheral zones struggle
  2. Plot size sensitivity: Smaller parcels (<500 sq yd) performed marginally better in previous auctions
  3. Timing recalibration: Future auctions may target post-Diwali or pre-budget windows

HMDA's next move remains critical, they've already identified 2,400+ plots across 18 layouts for future sales. But without pragmatic pricing aligned with actual developer ROI calculations, more auctions risk joining this week's zero-sale tally. For now, Hyderabad's land market sends a clear message: government valuations must meet market realities, not vice versa.