CIDCO Auction Sees Lackluster Response: Only 15 of 47 Plots Sold in Navi Mumbai
The recent CIDCO plot auction in Navi Mumbai has drawn a poor response, with only 15 of the 47 plots receiving bids. Developers cite high base prices and the need for a more realistic pricing policy.
Cidco AuctionNavi MumbaiProperty PricesReal EstateDevelopersReal Estate MumbaiOct 18, 2024
Developers have attributed the poor response to the high base rates fixed by CIDCO. The base price for these plots was determined based on a market rate analysis by Knight Frank, an independent third party. However, many developers argue that these prices do not reflect the ground realities. Vasant Bhadra, president of the Builders Association of Navi Mumbai (BANM), stated, “CIDCO is not in tune with the market conditions, which has led to even CIDCO flats remaining unsold in recent times.” Ashok Chhajer, chairman and managing director of Arihant Superstructures, added that the location of some plots did not justify the bid price. Haresh Chheda, a prominent developer, called this a wake-up call for CIDCO, urging the corporation to reexamine its policy. “CIDCO can no longer act on its whims. Mega-projects like the airport are not new to people. Take the Atal Setu, for instance, where traffic is only one-third of what was expected,” Chheda said.
Bhupen Shah, chairman-trustee of BANM, pointed out that CIDCO previously set the base price of plots at 4.5 times the reserve price. Now, he noted, the base prices are on par with those in premium neighborhoods, regardless of the actual location of the plots. “How can the price of plots on Palm Beach Road, off Palm Beach, and next to Palm Beach Road be the same, as is the case with Kharghar and Upper Kharghar, which is actually Taloja?” he questioned.
Despite the criticism, CIDCO's vice chairman and managing director, Vijay Singhal, defended the auction results. “The fact is, we have received a very good response. Soon after we sold 18 plots in our previous scheme, 34 plots sold in just two months. This is very positive and in sync with the market appetite,” he stated. CIDCO has already announced Scheme 41, offering 33 new plots. Singhal also refuted claims that the base prices were too high, noting that the prices were based on a market rate analysis by an independent third party. “We have received a ₹4 lakh/sqmt bid for a plot with a base price of ₹1.83 lakh/sqmt in Kharghar. How are the bids 21% to 118% higher than the base rate if they are considered high?” he asked.
Among the successful bidders in the latest auction is Godrej Properties, which acquired three adjoining plots in Kharghar’s Sector 5A. The total area of the consolidated plots is 26,477.87 sq mt, for which Godrej Properties paid ₹7,16.58 crore, an average of ₹2,70,633 per sq mt. Gaurav Pandey, Managing Director & Chief Executive Officer of Godrej Properties, expressed their plans for the area. “We aim to build a residential community that creates long-term value for its residents,” he said.
The disappointing auction results highlight the need for CIDCO to reassess its pricing strategy to better align with market conditions and the realities on the ground.
Frequently Asked Questions
What is the City and Industrial Development Corporation (CIDCO)?
CIDCO is a government corporation in Maharashtra, India, responsible for the planning and development of new townships, industrial estates, and infrastructure projects in the Mumbai Metropolitan Region, including Navi Mumbai.
How many plots were offered in the recent CIDCO auction in Navi Mumbai?
CIDCO offered 47 plots in the recent auction, which included residential, commercial, residential-plus-commercial, bungalow, and service industry plots.
Why did only 15 of the 47 plots receive bids in the CIDCO auction?
The poor response is attributed to the high base prices set by CIDCO, which developers argue do not reflect the ground realities and market conditions in Navi Mumbai.
What are the main areas where the plots were located?
The plots were located in various areas of Navi Mumbai, including Kharghar, Ghansoli, Airoli, Dronagiri, Kalamboli, Kopar Khairane, Nerul, New Panvel (East), and Panvel (East).
What is CIDCO's response to the criticism about the base prices?
CIDCO's vice chairman and managing director, Vijay Singhal, defended the base prices, stating that they were based on a market rate analysis by an independent third party and that the auction received a good response overall.
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