Navi Mumbai: CIDCO plot auction section mod_wast.

NEW DELHI: Developers are moving with caution to bid for the latest CIDCO (City and Industrial Development Corporation) plot auction in Navi Mumbai. Limited bidding was witnessed in a city where real estate demand is expected to surge due to ongoing mega-projects: of the 47 plots available for tender, just 15 received qualifying offers. The developers also blamed the lukewarm response to high base prices, with many feeling that the current rates were unjustified vis-a-vis locations of certain plots. Yet, bids for some plots went way above the 100% floor price including three bought by Godrej Properties signifying that interest differs in regions.

Developer Interest Quashed By High Base Prices

The auction for sale of plots offering space at residential, commercial, residential plus commercial, bungalow and service industry was executed in the month of September 2024. A mega-plotting exercise saw 47 plots on auction, but only 15 of these managed to garner the requisite number of bids needed for allocation. The remaining 32 plots saw just one or two bids, with no takers for location like New Panvel (East), Airoli and Ghansoli, among other areas

Most developers say that due to high base prices by CIDCO, the response has been quite tepid. In Navi Mumbai, a market where big ticket projects are the norm, many developers believed that some of these plots with their location may not fetch such a high price. Builders, too, echoed the sentiment saying that they have similar base rates as more premium areas and it will be unaffordable.

CIDCO attributes pricing strategy

CIDCO Vice Chairman and Managing Director, Vijay Singhal responded to these criticisms by stating that the pricing was based on an independent market analysis from real estate advisory firm Knight Frank. CIDCO, Singhal said, had not fixed the prices at will but they were very much decided in lieu of an elaborate market survey and keeping it abreast with current market rates.

Singhal also said, “Although participation was less than expected the bids received were substantially higher to their base prices”. For instance, a plot at Kharghar had an application rate that was 118% over the base price. He said this proves that there remains solid demand for good sites if the overall turnout was lower than expected.

Successful Bidders led by Godrej Properties

Godrej Properties emerged as one of the leading bidders in any auction where it won three adjoining plots in Sector 5A, Kharghar to Buy Land Godrej For a total area of 26,477.87 sqm for an amounting INR 716.58 crore at an average price of Rs2,70 that is equal to Rs52033 per square metre. Godrej Properties MD and CEO Gaurav Pandey said, "This fits well with our strategy of building a high-quality mixed-use residential development in this region that will add to the long-term value for its residents."

Satyam Lifescapes, Viraj Bhoir of Amber Developers and Shree Swami Enterprises were some of the other successful bidders. The companies managed to get land near major waypoints: Kharghar, Kalamboli and Nerul. Even as there was reduced participation, the successful sales indicate that specific pockets in Navi Mumbai are still witnessing substantial developer interest.

Real Estate Developments Rise in Navi Mumbai

The up and down reports on the CIDCO action makes for interesting reading at a time when Navi Mumbai real estate is seeing some violent changes. The region continues to evolve with mega-infrastructure projects like the Navi Mumbai International Airport and Mumbai Trans Harbour Link looming on the horizon, force shaping its future development. These projects are likely to improve connectivity and spur real estate demand for the residential as well as commercial sectors in this region.

Although the supply glut presented high base prices and irregular interest, the results of auctions clearly indicate that investors continue to have a good appetite for land in well-connected plots or prime areas. Meanwhile, developers who have adopted a long-term strategy such as Godrej Properties are preparing to benefit from the rising demand for Navi Mumbai.

Navi Mumbai Real Estate Future Outlook

Going forward, the market in Navi Mumbai is likely to witness pressure on demand and pricing due to geography specific reasons along with existing infrastructure up gradation. Although the auction witnessed fewer than expected bids, successful ones show demand for investment to grow further in some areas.

The city will still be a shining example of potential real estate mostly because as developers wade through the current sea muck, high base prices rise ever skyward. Those infrastructure accomplishments are expected to help increase property values and demand in the area. Going forward, both investors and homebuyers can bet on Navi Mumbai to provide a great background for long-term growth.

In Short: A Volatile, But Promising Market

Link: CIDCO plot auction in Navi Mumbai — Base price is a bummer, but strategic developments hold up market Whereas the company sold only a third of its 101 plots in Two Fountains Farm, it said market reaction to select offerings was strong - as evidenced by bids on two parcels that Godrej Properties purchased where demand for land remains robust.

As mega-projects start to gather pace, Navi Mumbai real estate will surely see an upward shift offering huge potential for developers and investors with a long-term outlook. This indicates that it will be a good place for residential investment in future, as all these key infrastructure projects materialize which also shows the possibility of development happening around this node.