Cidco plot auction may cut home prices in Navi Mumbai

The City and Industrial Development Corporation ( CIDCO) is all set to auction 13 plots measuring 4 lakh sq feet ( including FSI) in Navi Mumbai. Developers believe this will lead to reduction in home prices in Navi Mumbai.

This is one of the biggest auctions since the Maharashtra Real Estate Regulatory Authority (MahaRERA) came in force. Developers claim that unlike previous years, they won’t be quoting 150 per cent of the base price and only 20 to 30 per cent above base price will be quoted. Hence, as they are buying land at a lower rate, they will sell homes at a lower rate as well.

As per MahaRERA, a developer can now take money from a home buyer only phase wise, unlike earlier where they took a huge amount at the start. This rule will impact the funds a developer has as well as the bidding capacity.

Last year in New Panvel, a plot was sold for Rs 1.25 lakh per sq m, which came down to Rs 96,000 per sq m in May and in this auction, the base price has been set at Rs 52,306 per sq m, which developers claim will not go above 20-30 per cent. The plots are located in Kopar Khairane, Ghansoli, Nerul and New Panvel.