Cidco rakes in INR 439 crore from sale of three Kharghar plots

CIDCO has set a new record for the highest sale rates for its tender plots in Kharghar, Navi Mumbai with the recent sale of three residential-cum-commercial plots in Sector 23 for INR 1.61 lakh per sq metre, INR 1.71 lakh per sq. metre and INR 1.84 lakh per sq metre, earning it revenue of INR 439 crore.

According to a CIDCO spokesperson, in May this year a residential-cum-commercial plot in Nerul had sold for a record INR 2.82 lakhs per sq metre, a feat which has now been overshadowed by the sale of these three plots in Kharghar, reflecting the high demand in the area.

A prominent and fast developing node of Navi Mumbai, Kharghar is developed and maintained by CIDCO. Located on the Sion Panvel Highway, less than an hour's drive from Mumbai, the development of Kharghar began in the mid-nineties with the area now boasting of a number of ready and under construction residential and commercial projects.

Given the hectic pace of development here in recent years, Kharghar today is said to be the third most developed node of Navi Mumbai after Vashi and Nerul.

According to informed sources in the Navi Mumbai chapter of the Maharashtra Chamber of Housing Industry, all the three Kharghar plots are located near the popular ISKCON temple and measure 8401 sq m, 8694 sq m and 8351 sq m respectively.

The plots were won by the highest bidder, namely the Bhagwati Group of Developers who paid premium rates to acquire the plots. As per the rules, the developer will now have to ensure an upfront payment of 50 percent to CIDCO within the next thirty days.

According to industry experts, the announcement of the proposed Navi Mumbai international airport project near Panvel has renewed buyer and investor interest in Navi Mumbai properties and also triggered an increase in realty rates.

Further in a related development CIDCO has recently revised land rates after considering all the factors relevant to the city's growth, development and rising realty values. As a result, the base price for land plots in Navi Mumbai has increased by approx 20-25 percent.

Post the revision, Vashi has the highest base land price of INR 12,760 per sq metre while the Ulwe node has the minimum land pricing of INR 4,950 per sq metre.

Developers have since reacted with caution to the development with many opining that the higher rates were only a reflection of the increasing demand for realty in Navi Mumbai while others felt that this would trigger a further rise in prices of residential and commercial properties here.

Sharing his views Manohar Shroff, secretary of the Navi Mumbai chapter of Maharashtra Chamber of Housing Industry (MCHI), revealed that the sale of residential properties in areas like Panvel, Ulwe and Kamothe was on the rise while high end flats in developed nodes Nerul, Kharghar and Vashi were finding fewer buyers.

According to Shroff, a majority of Navi Mumbai developers are now holding on to their rates, post the announcement of the proposed international airport project here.  In June this year, six Cidco land plots in Belapur and Nerul areas were sold at record rates to the highest bidders.