Unsold properties a problem for development authorities

REASON High prices, poor maintenance, worn out condition and commercially unattractive locations are cited as factors behind lack of buyers

Development authorities and housing boards all over the state are not able to find prospective buyers for their properties despite repeated attempts.

Consequently, about 14,276 properties of various development authorities and housing board are lying unsold.

Out of this, 11,337 properties are residential and 2939 are commercial.

As a result, a whooping Rs 8107 crore of development authorities and housing board is blocked.

According to a senior LDA official, some of the residential properties which the development authorities have not been able to sell are very old and lack maintenance.

“Due to poor construction work and lack of maintenance, the unsold residential properties of development authorities have become all the more worn out,” said a senior LDA official.

High cost was also a reason behind the failure of development authorities to sell residential properties, he added.

“The development authorities are themselves responsible for not being able to sell their properties. Most of the old unsold properties of the development authorities are in poor state. Their construction work is of very poor quality,” said an LDA official.

Apart from high cost, locationwhere commercial activity is yet to pick up—is also a reason.

The Lucknow Development Authority has not been able to sell s 859 residential and 966 non-residential properties, Kanpur Development Authority 749 and 491 respectively, Agra Development Authority 433 and 236 properties respectively. The Moradabad Development Authority is yet to sell its 958 residential properties.

“The only way out for the development authorities to sell their unsold properties is to slash their prices. Without bringing down the price, they not be able to sell their properties,” said an LDA official.

Now, the LDA is planning to bring down prices of its unsold properties.