The new record sale price of three plots in sector 44A of Nerul is all set to bring realty prices in Navi Mumbai up to Rs25,000 per sqft, which is at par with Mumbai’s prime areas like Andheri, Santa Cruz, Matunga, Chembur and even Wadala.
“Plot no 69 and 70 were sold at Rs2,81,251 per sq m; while plot no 71 was sold at Rs2,40,001 per sqm. Plot no 69 and 70 went to Aniruddh Builders and Developers; while plot no 70 went to D Chaudhary properties consultants,” Mohan Ninawe, public relation officer of Cidco, said.
Market experts had predicted that the sale could clock a new record for Navi Mumbai and had expected a price range of Rs2.25 lakh to Rs2.50 lakh per sqm. Around two years ago, Cidco sold a plot in sector 46 of Seawoods for Rs2.10 lakh per sqm.
Haresh Chheda, treasurer of the Builders Association of Navi Mumbai (BANM), said: “Those who are bidding today are not new. They have been very much in market and were dealing in Gauthan plots. Now that the supply of those plots is restricted many of them are bidding for Cidco plots since they are sitting on cash reserves. Because of Cidco’s limited supply of plots the prices are spiraling upwards.”
Chheda said, “Given that the plot has been sold for Rs2.81 lakh per sqm and has FSI of 1.5 it means by the time the product (house) is ready it will be sold at Rs15,000 to Rs20,000 per sqft in Nerul. This means that prices in Nerul, which are now in the range of Rs10,000 to Rs12,000 will go beyond Rs15,000. Palm Beach Road is already commanding a rate of Rs20,000 to Rs25,000 per sqft.” He also shot down apprehensions that the project will be unviable.
Developers in Navi Mumbai blame slow release of plots by Cidco for astronomical prices of property in the region. “It is not the trend of the market. But it cannot be denied that a record price has been clocked for the Nerul plots. It is a residential and commercial plot and with shops on ground floor the entire mathematics changes,” Devang Trivedi, BANM president, said.
“Since the plot is close to the road, the developer will try and recover the plot cost mainly through sale of shops. Thus, there will be continous cash flow as against the case when the plot auctioned is purely for residential purpose where the developer has to wait for buyers or investors.”
Asked why old developers were not seen in action during the recently held auctions, Chheda said: “There is low demand and the developers are not willing to take any risk. It’s question of risk appetite of a builder.”
The rates offered by bidders during auction of plots by Cidco have gone up with each passing year. The rates, which were in the range of Rs65,000 to Rs75,000 per sqm for residential and commercial plots in 2009 have now zoomed up to Rs2.81 lakh per sqm.
Where are the buyers?
Never mind the so-called slowdown in the realty market, the record prices at Cidco’s auctions are indicative of a ready market for such high-end projects. “The selling price may be Rs25,000 per sqft, but the project comes with an exclusivity for which there are ready buyers. Even if a developer builds a one-flat-per-floor, there are ready takers for the 4,000 sqft apartments that add up to a selling price of Rs10 crore per apartment,” said a Vashi developer.