Mumbai: CIDCO freezes its plot reserve price, expects stability in house prices

In order to boost the real estate sector and provide stability in the rising prices of houses in Navi Mumbai, the Board of Directors of City and Industrial Development Corporation (CIDCO) has taken the decision of freezing the reserve price of its plots in various nodes and surrounding areas. The developers’ body has welcomed the move and they claimed that this will remove the inflationary pressure of land prices from developers’ minds.

Dr. Sanjay Mukherjee, vice-chairman and managing director of CIDCO tweeted about the decision on Sunday. He tweeted that the move will result in the stability of prices of land and help in its goal of affordability.

Haresh Chheda, president of Builders Association of Navi Mumbai (BANM) said that the move is the need of the hours. “The decision will bring stability in land prices for the moment and it will also, remove the fear of inflation in land prices,” said Chheda.

The prices of houses in Navi Mumbai have been rising continuously for almost a decade. The developers’ body has always blamed high prices of land for the rise in houses and they also showed the inability of an affordable house in a few nodes of Navi Mumbai.

Normally, the CIDCO revises the reserve price of plots in various nodes and surrounding areas like Vashi, Kharghar, Nerul, Ulwe, Panvel among others. The changes in the reserve prices push further the minimum bid price when a plot is put for auction. “Developers are always under the pressure of inflation in land prices and this pushes the overall cost of a house,” said Chheda.

Like in 2016-17, the reserve price of plots in Vashi was 14745 per sq meter which increased up to Rs 18740 per sq meter. Similarly, the reserve price of plots in Kharghar was 8875 per sq meter in 2016-17 which increased up to Rs 11,285 per sq meter

However, the decision will make to maintain the status quo until the unfreezing. “The existing reserve price will be taken to come at the base price of the plot,” said Chheda. He added that there will be no change in the reserve price of land until the CIDCO unfreezes.

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