Navi Mumbai town planning authority Cidco, which has put nearly 1.3 hectares of land on the block, is expecting four times the base price or over Rs 500 crore from its sale, with several infrastructure projects coming up in and around Nerul.
City and Industrial Development Corporation (Cidco) recently invited bids for the lease of 1.3 hectares or 13,619.47 sq mt of plot at sector 19A for residential and commercial development quoting a base price of Rs 95,461 per sq mt.
Cidco is currently promoting Nerul, along with other centres like Vashi and Belapur, as an iconic node, offering a floor space index of 1.5 for the mix-use development.
"Nerul is one of the prime developed nodes of Navi Mumbai. With the major physical infrastructure intact, Nerul is soon becoming an iconic node. We hope to get a good response for this and we are expecting nearly four times of our base price," Cidco senior public relations officer Mohan Ninawe told PTI here today.
He said the Corporation had also put on block another 6.5 hectares of land parcel in Nerul, near the 1.3 hectares plot, but has put it on hold for now, as certain terms and conditions are yet to be finalised.
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Property consultant JLL Mumbai managing director Karan Sodi said the realty market has bounced back after the lull witnessed due to various policy reforms like the GST, RERA and demonetisation.
"Navi Mumbai, mainly because of the number of infrastructure projects coming up like the MTHL, airport, metro, among others, has gathered huge interests from various stakeholders. This momentum will continue and the land parcels will see huge response," he added.
When asked whether the expectation of 4x of the base price was realistic, Sodi said, "considering the demand and the evolving market, it could be possible."
According to Cidco, the Corporation had witnessed the highest bid price of Rs 3.3 lakh per sq mt for the auction of 6,000 sq mt land parcel two year ago.
"This is a large plot and it may not reach this high, but we are hopeful of a good valuation," Ninawe added.
Commenting on the developments in Navi Mumbai, The Wadhwa Group managing director Navin Makhija said, "with Mumbai scaling to its maximum with respect to factors like paucity of land and pricing pressures, the expansion and growth focus is on emerging epicentres."
He said infrastructure developments are the factors driving the demand for the residential and commercial real estate in this new growth corridor.
"With the government showing support by implementing policies, these initiatives along with the infrastructure development are motivating developers and the private sector to contribute more to affordable housing," Makhija added.
The Wadhwa Group is currently developing an integrated township project spread across 450 acres to be developed in multiple phases.
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