NBCC's Sarojini Nagar auction brings in ₹5,191 crore from Avenue Towers flats

NBCC (India) Limited said in a regulatory filing dated 29 October 2026 that it had sold residential apartments of about 8.80 lakh sq ft at Avenue Towers, Africa Avenue Marg, Sarojini Nagar, New Delhi, through an e-auction. The filing puts the total sale value at about ₹5,191 crore.

The sale was made on behalf of the central government. The company said the proceeds will fund ongoing redevelopment works and support project completion timelines under obligations to the Ministry of Housing and Urban Affairs. The Avenue Towers flats form part of a seven-colony redevelopment programme approved by the Union Cabinet. NBCC is implementing three colonies: Sarojini Nagar, Netaji Nagar and Nauroji Nagar. The Central Public Works Department (CPWD) is implementing the other four: Mohammadpur, Thyagraj Nagar, Kasturba Nagar and Sriniwaspuri.

What drove the price

The average sale rate was ₹59,014 per sq ft, against a reserve price of ₹37,161 per sq ft. That is about 59 per cent above the reserve. The top bid was ₹89,061 per sq ft. The reserve is on super built-up area and includes three covered car parks for each apartment. The minimum bid increment was ₹100 per sq ft.

Before the auction, expectations for proceeds had been about ₹4,400 crore. The final figure is well above that level. The earlier auction was cancelled, and NBCC issued a fresh application document on 3 October 2026 for 262 apartments across nine towers. Reserve prices in that notice ranged from ₹15.75 crore to ₹17.76 crore per unit, and the main e-auction was scheduled for 19 October 2026.

NBCC's income and what is still unclear

NBCC will earn a 1 per cent marketing fee on the gross sale value, which the filing puts at about ₹51.91 crore. The company said the final amount depends on how the fee is calculated. Because the fee is income for a service rather than a sale of the company's own stock, the transaction adds to NBCC's one-time income without tying up its own balance sheet in the flats.

The filing did not disclose how many apartments were sold, who the buyers are, or what individual units sold for. Without those figures, the per-unit picture is incomplete, and the average rate is the best guide to pricing.

For buyers, the auction notice offered freehold residential units. The listed obligations include an IFMS and sinking fund charge of ₹200 per sq ft, a one-time club charge of ₹5 lakh plus GST, and maintenance of ₹6 per sq ft per month for two years. NBCC said construction has started, but the auction document does not set a fixed completion or possession date.

What investors will watch

• How NBCC records the marketing fee in its accounts, and the final amount.
• Buyer payment schedules and final deed registrations after the e-auction, which commentary has flagged as a risk.
• Whether proceeds are used on schedule for ongoing works under the programme.
• Dates for auctions in the other GPRA colonies, none of which have been announced.

The next signal is NBCC's accounting of the fee in its results. The pace of the remaining colony auctions will show whether this sale is a one-off or the start of a wider programme.