Navi Mumbai: CIDCO earns Rs 91 cr from four plots in Kharghar, highest bid at Rs 1,56,699 per sqm

The City and Industrial Development Corporation (CIDCO) has churned out Rs 91.72 crores by selling four residential cum commercial plots in Kharghar node. A plot admeasuring 1599.98 sqm in sector 9B in Kharghar received the highest bid of Rs 1,56,699 per sqm. The plots were sold through e-auction.

Though the planning agency made Rs 91,72,99,560 from the sale of four tender plots, the real estate experts feel the bid price was below the expectations. In the past, such kinds of plots had attracted seven to eight times the base price.

The four plots that were put up for bidding has the base price between Rs 60,939 and Rs 73,635 per sqm. In fact, a plot measuring 1,699.98 sqm at sector 9 in Kharghar did not even receive two times of the base price. The plot received the highest bid of Rs 1,27,635 per sqm and the base price was Rs 73,635 per sqm.

While the size of the plots ranged between 1399.9 sqm and 1699.86 sqm, the base price was between Rs 60,939 and Rs 73,635 per sqm.

Haresh Chheda, president of Builders Association of Navi Mumbai (BANM) said that the bid prices were quite low compared to past experiences. “Earlier, such residential cum commercial plots attracted seven to eight times of base price. However, the highest bid is just two times,” said Chheda, adding that the scenario of real estate does not look very encouraging at the moment.

Developers from the city also cite rising base price for dropping in bid price. “With the rise in base price, many developers stayed away from bidding,” said Chheda.

Recently, 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 CIDCO decided to freeze 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. However, now, developers say that there is a need to bring down the base price to increase the number of participants in bidding which will result in rise bid price as well as improve the sentiments.

During the mid-January, CIDCO sold 27 bungalow and row house plots in Ghansoli and New Panvel and made Rs 56 crores and even that time the bid price was not very encouraging.

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