Wednesday’s sale of three plots leased out by the City & Industrial Development Corporation (CIDCO) has caused a stir in the real estate industry in Navi Mumbai. All three plots, at Ghansoli, went for almost three times the base price set by CIDCO. Developers say the rates at which the plots are going isn’t a good sign for homebuyers, as it points to scarcity of plots, which makes developers quote such high rates.
The floor space index (FSI) of all three plots is 1.50 and the base rate was 42,966 INR per sqm. Going by sales in the past, the plots were expected to attract more than the base price. One went for 1.96 lakh INR per sqm, while the other two for 1.53 lakh INR and 1.47 lakh INR per sqm. Manohar Shroff, a developer from Navi Mumbai, says that the prices were exorbitant.
“It seems builders are working for CIDCO and the GST and Income Tax departments. They pay such huge charges, making the officials richer. Already, builders have to charge buyers 12% GST on under-construction projects. When they buy pricey plots, it is the buyer that suffers in the end.” Last month, two plots of 1,650 sqm each were put on auction by CIDCO at a reserve price of 62,300 INR per sqm.
One, F-94 in sector 12 of Kharghar, went for 1.87 lakh INR per sqm; the second, F-95, for 1.40 lakh INR per sqm. Haresh Chedda of BANMCREDAI, a realty body from Navi Mumbai, said, “Many developers have liquidity so they are putting in the money. There is a need to create more plots. The land bank from NAINA (airport influence area) hasn’t been released.”