Amid slowdown, five Cidco plots sold for ₹203 crore

The City and Industrial Development Corporation (Cidco) on Thursday auctioned five plots at Vashi and Airoli for ₹203 crore, even as the real estate sector continues

The City and Industrial Development Corporation (Cidco) on Thursday auctioned five plots at Vashi and Airoli for ₹203 crore, even as the real estate sector continues to experience a massive slowdown. The Maharashtra Chambers of Housing Industry (MCHI), an association of builders, however, described it as a “costly, impractical deal”.

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In an e-auction on Thursday, Cidco auctioned two 3,850-square metres (sqm) commercial plots in Vashi at ₹48.12 crore each. In Airoli, a 1,560-sqm plot and another 1,800sqm plot fetched ₹41.80 crore and ₹40.50 crore respectively. A 1,970-sqm plot, which was residential, was sold at ₹24.62 crore. Though the auction is over, Cidco is expected to officially announce the results on Friday. A Cidco official said it was a good deal for the corporation. “We really made money in this depressed market,” said the official.

MHCI, however, called the deal “exorbitant” and “impractical”. “There is a huge stock of unsold inventory already available and a lot of housing stock will soon be available once the redevelopment process starts again. There is no way the projects [on the plots of land sold on Thursday] will be viable by purchasing land at such an exorbitant cost,” said Manohar Shroff, vice-president of MCHI.

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. However, the current slowdown, as well as the Maharashtra Real Estate Regulatory Authority’s (MahaRERA) stringent rules, resulted in investors quitting the market and buyers becoming cautious to purchase properties.