The price of residential apartments in Navi Mumbai is set to rise as the
proposed Navi Mumbai airport project cleared its highest hurdle, with the
Maharashtra Government striking a compensation deal with the project-affected
persons (PAPs). According to reports, this would bring land worth more than Rs
10,000 crore into the market for development.
The compensatory land that PAPs
have been allotted is along the Mumbai-Pune by-pass adjacent to Panvel and is
priced at about Rs. 1 lakh per sq metre. This township will be called Pushpak
Nagar. Sources at City & Industrial Development Corporation (Cidco) said
that land prices in Navi Mumbai would shoot up once land allocation in Pushpak
Nagar is started. Mr. Mohan Ninawe, Public Relations Officer, Cidco said that
some builders, especially those holding inventory have hiked the price of
apartments by Rs 200 to Rs. 300 per sq ft, once the news of the clearance of
the proposed airport filtered in. The price increase is sharpest in areas which
are closer to the new airport.
Ms. Shalini Singh, Marketing Manager, Viscon
Homes Pvt. Ltd is expecting that the price per sq ft would increase by Rs. 100
to Rs. 200. Talking about the prices of apartments in Airoli, she said that
currently a 1 Bedroom, Hall, Kitchen (BHK) of approximately 640 sq ft would
cost Rs. 50 lakh while a 2 BHK of about 1000 sq ft would be priced upward of
Rs. 65 lakh.
According to Mr. Govind Sawant, Proprietor of Sawant
Constructions, the cost of apartments in Panvel has gone up from Rs. 4000 Rs.
5000 per sq ft to Rs. 6000 Rs. 6500 per sq ft depending on the exact location
of the apartments.
Real estate sources have been forecasting that the property
prices in Navi Mumbai would be shooting up once the airport project is cleared;
however, the long delay, from 1993 when it was first announced, has
disheartened many investors and builders. Now the patience of those investors
will pay off, one builder said. A lot of activity is expected around Panvel and
the areas adjacent; Panvel is the last township in Navi Mumbai and the start of
the Mumbai-Pune Expressway.
Land has been appreciating in Navi Mumbai areas
such as Airoli, Ulwe, Kamothe, Kalamboli, Panvel, Belapur and so on for the
past ten years, on the hope that two major infrastructure projects namely the
new airport project and the Rs 9,460 crore Sewri-Nhava Sheva sea link, which
would reduce travelling time between Mumbai’s central business districts and
Navi Mumbai from one hour to 25 minutes, would take off. The prices in these
areas are already at least 25 per cent more than the norm, sources said.
Many
of the end use buyers who invested in property in Navi Mumbai did so, because
the prevailing prices at that time were lower than the Island City. But now the
prices, mainly because of speculation, have gone through the roof, Shweta
Malik, a resident of Belapur and corporate executive said. The prevailing high
price is one reason that many end use buyers are putting off their decision to
invest.
Media reports that there are more than 15,000 apartments waiting for
buyers in the Sanpada, Dronagiri, Airoli, Taloja, Ulwe, Karanjade, Seawoods and
Kamothe areas. In Panvel alone there are over 11,000 unsold apartments. Mr.
Ninawe agreed that the builders were holding large inventories During the first
two quarters of 2013, there has been relatively fewer real estate transactions
in the Navi Mumbai area; builders were not able to off load inventory because
of the subdued market sentiment . Builders on their part were not willing to
lower prices because of the high input costs such as higher funding costs, high
land prices; cost of material and labour had also skyrocketed.
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