Yet another damp squib. The re-auction of embattled businessman Vijay Mallya's Goa property, Kingfisher Villa, saw no takers despite a reduction in reserve price by 5 per cent to £8.1 million by lenders. The lenders were hopeful to get buyers for the property which was put under auction for the third time. "There was hope that villa could get some buyer this time, but unfortunately, none of the bidders came forward. The auction failed this time as well," a source said.
Experts believe one of the reasons for the failure of the auction could be that people are seeing correction in real estate and the expect lenders to reduce the reserve price further for the villa. "Post demonetisation, the real estate market has become dull. The property prices have come down. Bidders would not have come forward for buying the villa today as they are hoping that lenders will lower the reserve price for the property," said an analyst.
The government's demonetisation move has also affected the real estate market where black money is steadily used to buy and sell properties. In the third failed auction of the Kingfisher House, the lenders reduced the reserve price by 15 per cent to £11.5 million. The prime property has a built up area of over 17,000 sq ft and is located in the plush Vile Parle area near the domestic terminal. It once Mallya hold several lavish parties. The businessman owes over £900 million to lenders like SBI, PNB, IDBI, BoB, Allahabad Bank, Federal Bank, and Axis Bank, among others. He had left the country on March 3 last year and currently resides in London.
