Bangalore: With the demand for land for residential or commercial use growing, the Bangalore Development Authority finds its finances in a very sound state. Auction of plots conducted by it has attracted high bids in recent weeks.

At a recent auction in Rajajinagar, BDA got Rs 1.05 crore for a 398 sq ft plot.

This was a corner plot located opposite Vidyavardhaka Sangha. BDA auctioned nine sites under the commercial-corner, residential-corner and residential intermediate categories in Rajajinagar First N Block, West of Chord Road 4th Stage, West of Chord Road 3rd Stage and 2nd Block and Rajajinagar 5th Block, earlier this month, netting large amounts.

Having carefully studied the market conditions, the authority fixes the reserve price, from above which the bidding has to start, for these plots at Rs. 4,182 a sq ft. From the auction of these sites, the BDA earned Rs 4.9 crores. Banashankari is another much sought after area, going by the land prices. Each shop in the BDA commercial complex there pays Rs. 38,500 a month and the carpet area of each is barely 267 sq ft.

Compared to this, the BDA earns only Rs. 5,200 a month from each shop in R.T. Nagar, Rs. 5,900 in RMV Extension and Rs. 6,700 in HBR Layout.

The BDA has 12 major commercial complexes, each with space for 40 to 50 shops which are leased for a period of five years at a time.

The rent amount is fixed through auction and since most complexes are in prime locations, attract large rentals. The BDA estimates it gets close to Rs. 9 crores rent a year from the shops.

According to BDA officials, the plots it owns and those recovered from land grabbers are among its biggest assets. Among the sites it auctions periodically, 80 per cent are recovered property.

Neither is the authority in a hurry to sell off its assets; it waits for market rates to go up and waits it out during periods of rapid market fluctuation. For example, the Hosur Road Sarjapur Road (HSR) Layout was developed way back in 1997 but the vacant sites are being sold now as they get good offers.

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