CIDCO churns out Rs 1162 crores from auction of plots

The City and Industrial Development Corporation (CIDCO) has churned out around Rs 1160 crores from the auction of 17 plots across Navi Mumbai. While initially offering 36 plots, only 17 garnered bids, prompting CIDCO to extend the bidding deadline twice.

A 2459 sq. meters residential cum commercial plot in sector 4 in the Nerul node received the highest bid price at Rs 6,46,803 per sq meter, with Falcon Electro Tek Private Limited emerged as the top bidder.

Interestingly, this plot had previously fetched Rs 6.72 lakh per sq meter in an earlier auction but had to be reauctioned after the initial winning bidder withdrew. CIDCO increased the base price from Rs 1,04,000 to Rs 5,18,328 for the second auction, marking the highest base price for any plot in the city. The plot, with a development potential of 1.5 FSI, is strategically located near Palm Beach Road.

Manohar Shroff, Senior Vice President of MCHI Credai Navi Mumbai, noted the potential in Navi Mumbai's market but expressed dissatisfaction with CIDCO's decision to raise the base price. Shroff pointed out that despite the increase, the plot did not fetch the previous bidding price, leading to unnecessary competition among developers.

Meanwhile, a 6258 sq meter plot at sector 11 in Ghansoli received Rs 3,06,789 per sq meter in the auction. Most of the bungalow plots in Kharghar received. According to developers, rising base price prevented bidders from bidding for bungalow plots. “Bungalow plots bidders are mostly individual and rise in price made difficult for individual to buy a plot at high price,” said another developer.

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

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

Meanwhile, developers as well as social activists echoed that home buyers must ensure that they buy properties which are RERA registered. Prashant Shivajirao Angude, a social activist who caught a developer was selling a flat even without RERA registration in Kharghar and informed the authority. He said that home buyers do not get trapped in developers' false promises and must check RERA registration. “If project is not registered with RERA, there should be no booking,” he said.