Nerul plot attracts record bid of ₹6.72 lakh per sq m
In an unprecedented bid that has sent shock waves through the real estate industry in Navi Mumbai, a CIDCO plot in Nerul close to Palm Beach Road has received a record bid of ₹6,72,651 per square metre. The bid is around 6.5 times the base price of ₹1,04,301 per sq m
NAVI MUMBAI: In an unprecedented bid that has sent shock waves through the real estate industry in Navi Mumbai, a CIDCO plot in Nerul close to Palm Beach Road has received a record bid of ₹6,72,651 per square metre. The bid is around 6.5 times the base price of ₹1,04,301 per sq m.
The plot rate quoted is almost ₹1.20 lakh per sq m more than the previous highest bid in the city, which was ₹5.54 lakh per sq m in the auction held in November last year for a Palm Beach Road plot. In a clear indication of the huge demand to grab the limited plots in the area, the second highest bid for the plot, too, was a record ₹5.56 lakh per sq m, which is more than the previous highest.
The residential-cum-commercial 2,459.33-square-metre plot with an FSI of 1.5 is located at Plot Number 23 in Sector 4. The highest bidder, Aramus Heaven LLP, will pay an estimated ₹165.50 crore lease premium to CIDCO for the plot, apart from 18 percent GST.
Mansukh Patel, director of Aramus Group, said that the prime location was the biggest reason for the record bid. “There is no plot available on Palm Beach Road now,” he said. “We also believe that the CRZ II restrictions will go soon, which will definitely benefit our project.”
Vasant Bhadra, president of the Builders Association of Navi Mumbai explained that the winning bid had several developers coming together, which helped spread the cost burden. “The demand for premium flats of 4,000 sq ft carpet area is limited but due to the paucity of supply, and the creek view it offers, the price is high,” he said. “Builders know they will make money here and hence the investment.”
Rajesh Prajapati, Founder President-CREDAI MCHI, Raigad unit believes that some parts of Navi Mumbai have completely overtaken Mumbai in the market. “The real estate industry is at an all-time peak, with enquiries from all groups, including NRIs,” he said. “The international airport, metro lines as well as the trans-harbour link are also nearing completion. Navi Mumbai seems poised for an explosive growth cycle.”
However, there are concerns as well. Manohar Shroff, senior vice-president of CREDAI-MCHI, Navi Mumbai, said that the bid price was equivalent to the land price in upscale Juhu in Mumbai. “The bid comes to around ₹8 lakh per sq m with GST,” he said. “This is not good for the Navi Mumbai market. The builders are playing into the hands of CIDCO.”
Shroff recalled that a Palm Beach Road project following a record bid eight years earlier had yet to see the light of day. “The developer even attempted to sell off the project,” he said. “Such high bids are not feasible. The developer faces financial issues later and this could result in low quality of construction or delay in the project. None of this is good for any of the stakeholders.”
₹719-crore windfall for CIDCO
In the latest e-auction, CIDCO offered 13 plots in Nerul (10), Kopar Khairane (2) and Ghansoli (1). The bids, which opened on March 15, fetched CIDCO a windfall of ₹719.26 crore for plots totally admeasuring 22,717 sq m.