Amid realty sector slowdown, Cidco sells 19 plots in Navi Mumbai for ₹677 crore

Despite the realty slowdown, builders continue to buy land at high rates as was evident when the City and Industrial Development Corporation (Cidco) on Friday sold 19 plots for ₹677 crore

Despite the realty slowdown, builders continue to buy land at high rates as was evident when the City and Industrial Development Corporation (Cidco) on Friday sold 19 plots for ₹677 crore.

For years, builders have purchased land in Navi Mumbai at exorbitant prices, resulting in a speculative realty market. (Hindustan Times)

The Maharashtra Chambers of Housing Industry (MCHI), an association of builders, has described the sales as “costly and impractical”.

The costliest deal was a 5,858.85 square metre Sanpada plot which was sold for ₹153 crore.

Priya Ratambe, public relations officer, Cidco, said it was the best deal for the corporation. “Despite the slowdown, our plots got a fabulous response and we fetched good prices,” said Ratambe.

MCHI called the sales speculative deals which do not augur well for the realty sector. “There are a lot of projects coming up in Navi Mumbai, especially in New Panvel. Such exorbitant pricing tends to spoil the market conditions and sends the wrong signals regarding the realty market,” said Manohar Shroff, senior vice-president, MCHI (Navi Mumbai).

Real estate research firm Liases Foras, while commenting on the sale of the plot for ₹153 crore, said that only an ultra-luxury project is possible on that land. “The builder can construct only ultra-luxury apartments costing more than ₹2 crore. He will find it difficult to sell them in the present conditions where the luxury market has taken a huge hit,” said Pankaj Kapoor, managing director, Liases Foras.

This is Cidco’s third auction in the last one month. Two weeks back, it was able to sell four plots worth ₹56 crore, and a month back, it garnered ₹56 crore from its auction of 12 row-house plots.

The city of Navi Mumbai, created to decongest Mumbai, has excellent connectivity and infrastructure. For years, builders, supported by investors, have purchased land at exorbitant prices, resulting in a speculative realty market.