The Mumbai Metropolitan Region Development Authority (MMRDA) has decided to put-off leasing of its vacant plots in the prime Bandra-Kurla Complex area, following volatility in the real estate sector.
Nearly 20 hectares of plots in BKC are still lying vacant and the authority is waiting for a turnaround in the sector so that it can obtain higher bids from interested parties for the land.
"The market is very uncertain presently and hence, we have decided not to lease the remaining plots. We feel that given prevailing market conditions, we will not be able to get a good amount from the bids," MMRDA's Deputy Matropolitan Commissioner, Anil Wankhade, told PTI here today.
He said that over 80 per cent of the land at BKC has already been leased out and of this, over 60 per cent has been developed.
Last year, the authority sold the 2,500 square metre land next to the Asian Heart Hospital at BKC to Tata Power. The Tata group company paid Rs 3.53 lakh per square metre of built-up area.
"Tata Power has taken a prime plot of land at the Bandra Kurla Complex (BKC) on lease for over Rs 86 crore. We expect much more from future bids," he said.
Wankhede said that MMRDA expects nearly Rs 40 lakh per sq metres from future bids.
"For next leasing, our base price would be Rs 3.5 lakhs. If we get a better bid, we will definitely sell the land," Wankhede said.
He said that the authority was not in need of immediate funds for its current projects.
"The lease amount is basically used for funding the projects undertaken by the authority. Since, we are not in immediate need of funds, we can wait for the market to stabilise," he said.