Why are Navi Mumbai property prices likely to drop?

Real estate in Navi Mumbai is scheduled to get a boost in 2015. CIDCO, or Maharashtra Municipal and Industrial Development Corporation, plans to auction nearly a hundred parcels this year. CIDCO has made Navi Mumbai what it is since its inception in 1972. Developers have often accused CIDCO of rationing land through tenders to raise prices.

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

Developers have long complained that CIDCO doesn’t auction too many parcels. Developers have to face intense competition to acquire property in Navi Mumbai, which leads to higher bid values. However, last year 20 plots were auctioned through two schemes. CIDCO reasons that it auctions fewer parcels because a lot of administrative work is needed to ensure that the lands are free of encumbrances. Only after proper checks and completion of processes are parcels rationed on the basis of tenders. CIDCO was also concentrating on providing mass housing schemes the year before.

For 2015, CIDCO has an action plan drawn up. They have created a marketing department whose aim is to raise 3 billion rupees through auctions this year. To meet the objective, the CIDCO will have to sell between eighty and one hundred parcels through auctions. At least one plan will be offered each month, which will aim to sell 8 to 9 plots each. The promoters will also be silenced, as the complaint against CIDCO for rationing at higher prices would be paralyzed. Much land will be made available to the builders.

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

Navi Mumbai has become an investment hotbed in the Mumbai Metropolitan Region through its seamless connectivity to 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 Sea Link, which would further boost the city’s real estate sector. Buyers have already expressed interest in the area and have purchased properties.

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