Mixed Response to CIDCO Plot Auction in Navi Mumbai: Godrej Properties and Others Bid
The recent auction of plots by CIDCO in Navi Mumbai has seen a lukewarm response, with only 15 of the 47 plots receiving the necessary bids. Developers cite high base rates as a deterrent, but CIDCO remains optimistic about the market's potential.
Navi MumbaiCidcoPlot AuctionReal EstateGodrej PropertiesReal Estate MumbaiOct 23, 2024
Developers attribute the lack of interest primarily to the high base prices set by CIDCO. The corporation relies on revenue from plot auctions to fund its mega projects, which include the upcoming Navi Mumbai International Airport and other infrastructure developments. Under Scheme 40, CIDCO offered 47 plots for various uses, including residential, commercial, residential-plus-commercial, bungalow, and service industry. The plots were distributed across several locations such as Kharghar, Ghansoli, Airoli, Dronagiri, Kalamboli, Kopar Khairane, Nerul, New Panvel (East), and Panvel (East).
While only 15 plots received the necessary three bids for allotment, another 10 plots received one or two bids, and 22 plots did not attract any bids at all. The 22 plots that went unsold were primarily located in New Panvel (East), Panvel (East), Airoli, and Ghansoli. Among the developers whose bids were accepted were Godrej Properties, Satyam Lifescapes, Viraj Bhoir of Amber Developers, Shree Swami Enterprises, Ambe Refrigeration, Hari Krishna Buildcon, Giriraj World, Max Home, Abhinandan Builders, Abhinandan Developers, Majestic Dreams, Subhash Hariprasad Agarwal, and R K Infra.
When asked about the lackluster response, several builders and industry leaders expressed concerns about the high base prices, suggesting that the locations did not justify the bid prices and that the current rates were on par with those in premium locations. However, CIDCO officials have dismissed these concerns, stating that the response they received was better than expected.
Vijay Singhal, the Vice Chairman and Managing Director of CIDCO, told reporters that the corporation had sold 18 plots in their previous scheme, with 34 plots being sold within just two months, aligning with market demand. He refuted the concerns about base prices, explaining that the pricing was based on market rate analysis conducted by independent third-party consultants, Knight Frank, and not by CIDCO itself. Singhal highlighted that they received a bid of INR 4 lakh per square meter for a plot with a base price of INR 1.83 lakh per square meter in Kharghar, indicating that some bids were 21% to 118% higher than the base rate.
Godrej Properties, a leading developer, purchased three adjoining plots in Kharghar's Sector 5A, covering a total area of 26,477.87 square meters, for INR 716.58 crore, averaging INR 2,70,633 per square meter. Gaurav Pandey, Managing Director and Chief Executive Officer of Godrej Properties, stated that the company aims to build a residential community that will create long-term value for its residents.
In conclusion, while CIDCO's recent plot auction in Navi Mumbai saw fewer bids than anticipated, the outcome reflects a mixed response from developers. The high base prices, justified through market analysis, may have deterred some participants. However, the successful bids, including those by Godrej Properties, indicate that certain locations still hold significant investment potential. As Navi Mumbai continues to develop through mega-projects, the real estate market is expected to see further fluctuations in demand and pricing.
Frequently Asked Questions
What is the reason for the mixed response to the CIDCO plot auction in Navi Mumbai?
The mixed response is primarily due to the high base prices set by CIDCO, which some developers feel do not justify the locations of the plots. Additionally, the current real estate market in Navi Mumbai is competitive, and developers are cautious about their investments.
How many plots were offered in the auction, and how many received bids?
CIDCO offered 47 plots in the auction, but only 15 plots received the necessary three bids for allotment. Another 10 plots received one or two bids, while 22 plots did not attract any bids at all.
Which developers were among the successful bidders in the CIDCO plot auction?
Developers such as Godrej Properties, Satyam Lifescapes, Amber Developers, Shree Swami Enterprises, and several others were among the successful bidders in the auction.
What is CIDCO's stance on the base prices of the plots?
CIDCO maintains that the base prices are based on market rate analysis conducted by an independent third party, Knight Frank. They believe the prices are justified and that some bids were even 21% to 118% higher than the base rate.
What is Godrej Properties' plan for the plots they purchased in Kharghar's Sector 5A?
Godrej Properties aims to build a residential community in Kharghar's Sector 5A that will create long-term value for its residents. They purchased three adjoining plots covering a total area of 26,477.87 square meters for INR 716.58 crore.
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