The land auction on Friday by the City and Industrial Development Corporation (Cidco) for a five-star hotel in Navi Mumbai was a clear indicator of a realty slump.
MUMBAI: The land auction on Friday by the City and Industrial Development Corporation (Cidco) for a five-star hotel in Navi Mumbai was a clear indicator of a realty slump.
Pune-based Metropolis Ltd outbid Taj Group’s Indian Hotel Pvt Ltd to bag the sprawling 47,000 square metre plot at Seawoods in Nerul, off Palm Beach drive, by quoting Rs5,000 per sq m more. At Rs60,085.15 per sq mt, the net deal is around Rs283 crore. This is the biggest ever plot Cidco has auctioned in Navi Mumbai for a hotel — Navi Mumbai has no five-star hotel yet.
Only two years ago, Hyatt Hotels and Resorts bought a plot close to Kharghar station on the Mumbai-Pune highway at Rs71,000 per sq mt. The PVP Group bought land in CBD Belapur near Killa Junction at Rs81,000 per sq mt in 2005. However, Cidco officials say these plots were smaller in area, hence their rates were more steep.
Metropolis will get an FSI of 1.5 for the plot. If the FSI is taken into account, the total construction area would go up to 70,500 sq mt with the cost of FSI in the market going up to Rs142 crore.
Among the other hotel chains that bid for the plot are The Leela Venture Pvt Ltd jointly with L&T, and the Sun-N-Sand Hotels at Rs48,063.90 per sq mt and Rs49,361.70 per sq mt.
Navi Mumbai has seen a record deal of Rs95,000 per sq mt for a residential plot off Palm Beach drive.
Navi Mumbai Municipal Corporation (NMMC) standing committee chairman Sandeep Naik slammed the auction saying Cidco could have generated over Rs500 crore by auctioning smaller plots. “People want parks and reconstruction of old Cidco apartments. Instead of selling the entire 47,000 sq mt, they could have had 10 different plots for residential purposes,” Naik told DNA.
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