Why are property prices in Navi Mumbai likely to drop?

Real estate in Navi Mumbai is expected to get a boost in 2015. CIDCO (Maharashtra City and Industrial Development Corporation) plans to auction off almost a hundred plots of land this year. CIDCO has made Navi Mumbai what it is, since its inception in 1972. Developers have often accused CIDCO of rationing land through bidding to increase prices.

CIDCO is the de facto owner of all the properties in Navi Mumbai. CIDCO’s first auction was held at the end of the previous month. It involved the auction of six parcels which generated 294 million rupees for the company. Of the six plots, five were located in Nerul. They were sold for commercial and residential use. Navi Mumbai’s sixth real estate parcel has been sold in CBD Belapur. CIDCO had received eighty-two offers, the highest being Rs 2.82 lakh for a plot in Sector 44A in Nerul.

Developers have long complained that CIDCO doesn’t auction off too much land. Developers face intense competition to acquire properties in Navi Mumbai, leading to higher bid values. However, last year 20 parcels were auctioned through two schemes. CIDCO reasons that it auctions off less land because a lot of administrative work is needed to ensure that the land is free of encumbrances. Only after due controls and the completion of the processes, the parcels are rationed on the basis of tenders. CIDCO was also concentrating on providing mass housing schemes the previous year.

For 2015, CIDCO has an elaborate action plan. They have set up a marketing department which is aiming to raise Rs 3000 crore through auctions this year. To meet the goal, CIDCO will have to sell around 80 to 100 lots through auctions. At least one scheme will be offered each month, targeting the sale of 8-9 lots each. Developers will also be silenced as the lawsuit against CIDCO for price rationing would end. Much land will be made available to builders.

Both developers and buyers of apartments for sale in Navi Mumbai have welcomed the decision made by CIDCO. It has taken part of the real estate market by surprise as CIDCO had not done so before. With an increase in the number of plots on offer, the price of the property will bring. Those looking for affordable properties in the city will have an easier time finding the right projects.

Navi Mumbai has become a focus of investment in the Mumbai Metropolitan Region for its seamless connectivity with the eastern suburbs of Mumbai and the development of IT and financial services. Several infrastructure projects have been planned for Navi Mumbai, such as the Navi Mumbai International Airport and the Nhava Sheva-Sewri Maritime Link, which would further boost the city’s real estate sector. Buyers have already expressed interest in the area and have purchased properties.