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Upcoming airport causes land prices to soar

The City and Industrial Development Corporation of Maharashtra (Cidco) sold plots for 30% more than the market rates, reports Madhurima Nandy.

india Updated: Jan 05, 2007 00:14 IST

If land prices in Mumbai continue to soar, Navi Mumbai is not far behind. On Thursday, twelve plots were sold by the City and Industrial Development Corporation of Maharashtra (Cidco) for 30 per cent more than the market rates.

The sold plots are located in New Panvel, Kalamboli and Kharghar. The plot, which fetched the highest rate, is spread across 1535 square metres in New Panvel at Rs 47,202 per sq m (approximately Rs 4385 per sq ft).

Cidco officials admitted that the scramble for land in Navi Mumbai and soaring land rates are particularly because of the announcement of the second airport in the area. The New Panvel plot, for example, was sold at almost double the current market rate, which is around Rs 1,500 to Rs 1,800 per sq ft.

Speaking to HT, Marketing manager II, DLN Murthy said, "We received 150 applications for the twelve plots. Land prices have gone by nearly 30 per cent since the last time we called tenders two months back."

The plots were sold in two categories. While eight plots were sold in new Panvel and Kalamboli with a permissible floor space index (FSI) of one, the remaining four plots are located in Kharghar and Kalamboli with an FSI of 1.5.

"The first set of eight plots are earmarked for residential and commercial usage and the second set of four plots would for residential usage," added Murthy.

Property consultant Arvind Bhanushali said that Cidco has sold the plots at almost double the current market prices. Elaborating the rising trend, Bhanushali said that in Kharghar, where ready flats for possession are being sold at Rs 3,000-3,500 per sq ft, Cidco has sold a piece of land for 3,715 per sq ft.

Email Madhurima Nandy: madhurima.nandy@hindustantimes.com