NAVI MUMBAI: If the increase in the number of visitors at the recently concluded Navi Mumbai property fair is any indication, the city's property market may be looking hot.
But the reality is that the property prices in Navi Mumbai are now equivalent to their counterparts in the western suburbs. For example, developers of Nerul to Kharghar projects have increased the prices of their premium projects by approximately 20-30% to touch Rs 10,000 per sq ft to Rs 15,000 per sq ft. This price is equivalent to that prevailing between Goregaon and Kandivli.
Despite clouds on the fate of Navi Mumbai airport and a Trans-Harbour link,
the property prices in Ulwe have seen a 9-10% appreciation. The average price now ranges between Rs 4,600-5,500 per sq ft.
"The price hike of about 10 to 30% across Navi Mumbai is unrealistic considering the poor infrastructure and the high quantum of flats available in the market," said a local broker. "Builders are ready to negotiate if one shows the money but they cannot afford to announce a rate cut for fear of affecting the profit margins of their investors," he added.
Vice president of Builders Association of Navi Mumbai Manish Bhathija however, said that projects are not delayed. "Delays, if any, are due to want of regulatory approvals. The builders have no financial woes, as there is a huge interest from buyers. Prices in Navi Mumbai are still affordable and more so when one considers the infra projects structure like the new airport which is being planned by the state government," he added.
But the reality is that the property prices in Navi Mumbai are now equivalent to their counterparts in the western suburbs. For example, developers of Nerul to Kharghar projects have increased the prices of their premium projects by approximately 20-30% to touch Rs 10,000 per sq ft to Rs 15,000 per sq ft. This price is equivalent to that prevailing between Goregaon and Kandivli.
Despite clouds on the fate of Navi Mumbai airport and a Trans-Harbour link,
the property prices in Ulwe have seen a 9-10% appreciation. The average price now ranges between Rs 4,600-5,500 per sq ft.
"The price hike of about 10 to 30% across Navi Mumbai is unrealistic considering the poor infrastructure and the high quantum of flats available in the market," said a local broker. "Builders are ready to negotiate if one shows the money but they cannot afford to announce a rate cut for fear of affecting the profit margins of their investors," he added.
Vice president of Builders Association of Navi Mumbai Manish Bhathija however, said that projects are not delayed. "Delays, if any, are due to want of regulatory approvals. The builders have no financial woes, as there is a huge interest from buyers. Prices in Navi Mumbai are still affordable and more so when one considers the infra projects structure like the new airport which is being planned by the state government," he added.
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