Developers’ body fume over five fold rise in base price of Nerul plot

The City and Industrial Development Corporation (CIDCO) has increased the base price of a plot in Nerul almost five times within a year after it was first put on e-action. The plot had received a whopping Rs 6.72 lakh per square meter in the bidding then. However, the winning bidder backed out for some reason, and CIDCO has again put that plot up for auction.

As per the tender document, the 2459.33 sq. meter residential cum commercial plot in the Nerul node has a base price of Rs 5,18,328, which is the highest base price of any plot auctioned in the city so far. Interestingly, in March 2022, when the plot was first put on auction, it had a base price of Rs 1,04,000.

This drastic escalation has raised concerns among developers, with Manohar Shroff, senior vice president of MCHI Credai Navi Mumbai, stating that it may erode the concept of affordable housing by fostering competition among developers. “There must be some valid reason for an increase in the base price almost five times,” said Shroff.

In March 2022, the plot which is located near Palm Beach Road, had received more than six times the base price. Aramus Heaven LLP emerged as the highest bidder with Rs 6,72,400 of the said plot then. Following the removal of height restrictions in Navi Mumbai, the demand for plots has risen, and thus the overall bidding price has also risen.

Following the removal of height restrictions in Navi Mumbai, the demand for plots has risen, and thus the overall bidding price has also risen.

In July 2022, the Airports Authority of India (AAI) agreed to grant height NOCs for buildings located within a 20-kilometer radius of the proposed Navi Mumbai International Airport (NMIA). As per the decision, buildings up to an elevation of 160.10 meters above mean sea level (AMSL) will be allowed in the city. According to the developer's body, the decision has unlocked the vertical development, and buildings up to 48 stories can be constructed.

Shroff says that because of the rise in base price, the earnest money deposit (EMD) of a Nerul plot is Rs 12.64 crore, and similarly, a 6258.3 sq meter plot has Rs 16.83 crore in EMD. “With such a high EMD, only selected developers would be able to participate. Even developers have to unite and oppose such a move by the planning agency, said Shroff.

Meanwhile, CIDCO has come up with 36 residential, commercial, bungalow, and commercial purposes in Ghansoli, Vashi, Sanpada, Nerul, Kharghar, New Panvel, and Kalamboli nodes in Navi Mumbai.

For three years, CIDCO has made available plots of all sizes, from raw house bungalow plots to plots for bigger residential complexes.
The size of plots ranges from 131 sq meters to 7432 sq meters, and the base price starts at Rs 88,846 per square meter. And these plots can be developed from 1.1 to 1.5 FSI.

An official from CIDCO’s marketing department said that the sale of the booklets for these plots started on Diwali. “There are many factors that decide the base price,” said the official.