CIDCO is preparing to auction 13 plots measuring 4 lakh sq. ft. in Navi Mumbai. However, developers feel that this will cause a significant reduction in home prices in the city.
This auction will be one of the biggest since the start of Maha RERA (Maharashtra Real Estate Regulation Act. Unlike what they did last year, developers this year aren’t going to be quoting 150% of the base price, but only will be quoting 20 to 30% above the base price. So, since they ’ll be purchasing lands at a lower rate, the houses will also be sold at lower rates.
According to MahaRERA, instead of taking a huge amount in advance, developers will be able to make money from a home buyer only phase wise. This will affect the funds of the developers and the bidding capacity.
In New Panvel last year, a plot was sold for Rs. 1.25 lakhs per sq. m., which was reduced by Rs.29,000 in this auction. The base price has been set at Rs. 52,306 per sq. m., which developers say that will not go above 20-30%. These plots are located in parts of Navi Mumbai like Kopar Khairane, Ghansoli, Nerul and New Panvel.