Around few months ago a plot in Navi Mumbai's New Panvel area was sold for Rs 1.25 lakh per square meter. However, on Tuesday, when Cidco, the local planning authority held the auction for six plots, the highest bid received was of Rs 96,000 per square meter (sqm). Builders claim that the recently introduced Real Estate Regulatory Authority (RERA) is the reason why builders have quoted realistic prices. Cidco, on the other hand, agrees that the rates were lower as compared to the previous deals, but are happy with the latest quotations being higher than the reserve price.
The auction saw Satyam Realty as the highest bidder as it bagged a plot for Rs 96,000 per sq foot, of which reserve price was Rs 42,620 sqm. The other five plots with the same reserve price were also put on sale. Two plots were won by Neelsiddhi Group for Rs 65,250 per sqm, while the same builder got another plot for Rs 76,000 per sqm. One other plot was won by Millenium group for Rs 80,000 per sqm and Satyam won another plot for Rs 77,000 per sqm. The plot sizes were between 4,000 sqm to 6,000 sqm.
Manohar Shroff, Vice President, MCHI-CREDAI's Navi Mumbai unit said, "It is because of RERA the revision in realty prices can be seen. Realistic prices are now being quoted because everything will be accounted under this Act."
Meanwhile, the builder who bid the highest, claims that the plot demanded this price. Ganesh Patel, of Satyam Realty, said, "The land was smaller in size compared to the earlier deals, and hence we quoted the amount, builders who are not following the rules will have to worry about RERA."
On the other hand, Cidco is happy that all their plots found takers and that too above the reserve price. Bhushan Gagrani, the Managing Director for Cidco confirming the deals, said, "The builders can state why the rate was lower than the previous deals, but from our side, the prices quoted by developers is above the reserve price. New Panvel is a newly developed area and this plot was heavily encroached too, which we have managed to remove and also find takers for the same."
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