34K sq mt land to go under hammer
Mumbai : After a long gap, the Mumbai Metropolitan Region Development Authority (MMRDA) will once again put its land parcels in Bandra-Kurla Complex on auction in the new financial year. Land parcels in its plush business district are regarded as ‘family silver’ for MMRDA, which have fetched record sums in previous auction.
The MMRDA has roped in real estate consultants CBRE to guide them with the land valuation and auction bids. “We have engaged CBRE as our consultants for the auction for two commercial land parcels. The auction is likely in April,” said UPS Madan, Metropolitan Commissioner, MMRDA.
The plots that MMRDA intends to sell off are a 12,500 sq meters plot in G-Block and 21,807 sq meters in G (North) block of the BKC. These commercial plots in BKC have a floor space index (FSI) of 4.
After auctioning plots in 2008, MMRDA did try to sell plots in 2010 at the rate of Rs 3 lakh per sq meter, which didn’t get response from buyers.
MMRDA has funded infrastructure projects in the past by selling land parcels in BKC.
Now with several big ticket infrastructure projects in the pipeline, the MMRDA has set in motion the process to auction land.
“We did not go for plot auction as the real estate market was in a downturn. Though, we tried once in 2010 but did not get the expected response. Now, we also need funds for some crucial projects such as the two upcoming metro corridors and MTHL,” a senior MMRDA official said.
Meanwhile, in a bid to tap market mood and to pique interest of the local and international real estate players, CBRE will carry out road shows prior to the auction for the MMRDA. “CBRE will do some road shows around cities to spread awareness and to see the kind of response and queries it generates,” Madan said.
The senior MMRDA official added that they are expecting Rs 4-5 lakh per sq meter in the auction.