Mixed Reactions as Nerul Plot Prices Soar to ₹7.65L per Sq. m

The astronomical surge in the bid price of four Nerul plots facing Palm Beach Road — reaching ₹7.65 lakh per square meter for a 12 C, sector 28 plot— has evoked mixed reactions among the Navi Mumbai builders' community. City developers are closely monitoring the development projects planned for these plots, along with the response of prospective home-buyers.

These plots, especially those facing Palm Beach Road, are in the final phase of availability. This could be the last opportunity for developers aiming to undertake projects along Palm Beach Road. That’s why the prices have soared so high — they’re incomparable to the rest of the city,” said Dharmendra Karia, Choice Group Chairman, Managing Director, and BANM Trustee.

Currently, premium projects along Palm Beach Road are priced between ₹40,000 and ₹50,000 per square foot of carpet area. While some developers anticipate a rise in flat prices due to the spike in land rates, others argue that with the current Floor Space Index (FSI) of 4, prices can be kept stable, since more housing units can be built on the same plot of land.

‘Now, we can construct more flats on the same-sized plots thanks to the additional FSI, which developers can avail by paying a premium to the government. So, if the project is managed efficiently and transparently, flat prices can be maintained despite the increase in land cost,’ added Karia.

The Ghansoli-based Parth Urban Spaces Limited has won bids for four adjacent plots in the same location, 12 A, 12B, 12C, and 12D, the total cost reaching up to Rs 1495 crore.

Some developers warned that the massive surge in bid prices could negatively impact the market, as the increased land costs would eventually be passed on to property prices. “CIDCO is not meant to be a profit-making organization; rather, it should play a regulatory role in stabilizing market prices. If this trend continues, CIDCO will end up fueling property inflation in the city instead of promoting affordability,” said Suresh Haware, President of the Marathi Bandkam Vyavsayik Mahasangh, Maharashtra.

He further emphasized that CIDCO should impose an upper cap on bid prices, just as they set a base price. “CIDCO can help regulate real estate prices by placing an upper limit on plot rates during auctions. Additionally, the authority should take steps to regulate housing and commercial prices in the real estate market, rather than enabling profiteering,” added Haware.

Considering the massive capital investment involved in the project, city-based developers are closely monitoring its progress. “The stakes in this project are quite high. So, we are keen to see how it shapes up and how consumers respond to it. We’ll only get a clear picture once the actual work begins on site,’ said M.C. Sunny, Managing Director of National Group.

With all four plots put together admeasuring 5.24 acres and with exclusive water body view, adjacent to the Palm Beach Road, the real estate experts expected the Parth Urban Spaces Limited project to be one of the finest. “The above plots have exclusive water body view, all four plots put together, it will be a splendid project. Besides, the location has both a railway station, Palm Beach Road, and Seawoods Mall connectivity. It will receive a decent growth,” explained Jigar Trivedi, Joint Managing Director of Progressive Group.

He further added, “Real estate prices will naturally rise with the rate of inflation. It’s just that Navi Mumbai has long been underestimated, so whenever there’s a record price hike, people tend to doubt its justification. But with ongoing infrastructure development, quality projects, and a strong track record, Navi Mumbai’s image is transforming, and buyers are now considering it for luxury housing as well.”