Why Are Navi Mumbai Property Prices Likely To Come Down?
Real estate in Navi Mumbai is slated to receive a boost in 2015. The CIDCO or City and Industrial Development Corporation of Maharashtra, is planning to auction almost hundred plots this year. The CIDCO has developed Navi Mumbai into what it is, since its inception in 1972. Developers have often accused CIDCO of rationing land via tenders for increasing prices.
CIDCO is the de facto owners for all property in Navi Mumbai. The first auction by CIDCO was conducted towards the end of the previous month. It involved the auction of six plots which netted Rs 294 crore for the company. Out of the six plots, five were located in Nerul. They were sold for both commercial and residential use. The sixth Navi Mumbai real estate plot was sold at the CBD Belapur. The CIDCO had received eighty two bids, the highest being Rs 2.82 lakh for a plot in Sector 44A in Nerul.
Developers have complained for long that the CIDCO does not auction too many plots. Developers have to face intense competition for acquiring property in Navi Mumbai, which leads to higher values of bids. However, the last year saw 20 plots being auction via two schemes. The CIDCO reasons that it auctions fewer plots because there is much administrative work needed for ensuring that lands are free from encumbrances. Only after proper checks and completion of processes, are the plots rationed on the basis of tenders. The CIDCO was also concentrating on providing mass based housing schemes the previous year.
For 2015, CIDCO has an elaborate plan of action. They have set up a marketing department that target to fetch Rs 3000 crore through auctions this year. For meeting the target, the CIDCO will have to sell around eighty to hundred plots through auctions. At least one scheme shall be offered every month, that shall aim to sell 8 to 9 plots each. Developers too shall be silenced as the complaint against CIDCO for rationing at higher prices would be put to rest. Much land shall be made available to builders.
Both developers and buyers of flats for sale in Navi Mumbai have welcomed the decision taken by the CIDCO. It has taken a section of the real estate market by surprise as the CIDCO has not done this before. With an increase in numbers of plots being offered, price of property shall be brought. Those looking for affordable properties in the city shall have it easier to find the appropriate projects.
Navi Mumbai has emerged as a hotbed of investment in the Mumbai Metropolitan Region for its smooth connectivity with the eastern suburbs of Mumbai and development of financial and IT services. Several infrastructural projects have been planned for Navi Mumbai such as Navi Mumbai International Airport and the Nhava Sheva- Sewri Sea Link which would further boost the real estate sector of the city. Already buyers have expressed interest in the area and have bought properties.