The Greater Mohali Area Development Authority (GMADA) is facing a slowdown in its commercial real estate segment as several high-value plots remain unsold. In the latest e-auction, six commercial sites in Sector 62 failed to attract buyers for the third consecutive time, highlighting weakening investor interest due to high reserve prices and inadequate infrastructure. Once a key driver of Punjab’s real estate growth, GMADA is now struggling in most sectors, with demand remaining concentrated in prime locations like Aerocity and IT City.
Officials stated that the steep reserve price of over ₹75 crore per acre for Sector 62 plots is discouraging investors, especially when land in nearby areas costs between ₹8–15 crore per acre. This wide pricing gap has reduced the competitiveness of GMADA’s older commercial plots, despite the steady demand in premium sectors.
The e-auction also witnessed lukewarm response for other major commercial and industrial properties, including three mixed-use plots in Aerocity, eight hotel plots in Sector 66B, and plots for group housing, schools, and petrol pumps. Even a 12-acre commercial site in Aerocity Block D and four two-acre plots in IT City went unsold, underscoring persistent challenges across multiple sectors.
Some sectors, however, showed positive performance. Sector 78 emerged as a bright spot, with all 17 showroom plots priced between ₹6.5 crore and ₹10 crore sold, significantly boosting GMADA’s revenue. In contrast, Sector 69 witnessed sales of only two showrooms and one booth, demonstrating uneven performance across the city. Analysts note that private developers are increasingly attracting investors by offering flexible payment plans, instant possession, modern amenities, and faster returns, which gives them a competitive edge over GMADA’s older plots.
Older GMADA sectors continue to suffer from poor infrastructure, including weak roads, sewerage, lighting, and limited parking facilities. Insufficient public transport connectivity further discourages investment in these areas. Experts recommend that GMADA should reassess land pricing strategies, upgrade infrastructure, and provide incentives to attract investors. Modernizing commercial offerings and addressing infrastructure gaps are seen as critical steps to boost investor confidence and reduce unsold inventory.
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