The City and Industrial Development Corporation or CIDCO is witnessing a drop in rates of its plots in Mumbai. CIDCO recently sold off its plot of 3.3 acres at Nerul, Navi Mumbai for approximately Rs. 181 crore. This works out to around Rs. 1.33 lakhs per sq. meter. As per reports, even 3 years earlier, a similar plot owned by CIDCO was bought for around Rs. 2.92 lakhs per sq. meter. The plot is located at Sector 19 A in Nerul and is situated right next to the Wonder Park. The plot has been purchased by Moreshwar Builders and Developers which is one of the leading realty players in the Navi Mumbai market.
Experts feel that there are several market forces which are responsible for this drop in values of CIDCO plots. However, homebuyers stand to benefit from the lower pricing of land throughout Mumbai. Experts feel that land constitutes one of the biggest portions of the costs incurred by developers for realty projects. As a result, reductions in land prices will definitely benefit homebuyers. Reasonable rates of land are also perceived as highly necessary for maintaining overall market stability. Whenever rates are exorbitant, they create problems throughout the realty market in Mumbai and lead to lower sales volumes on account of sky-high property pricing.
The Mumbai realty market was majorly driven by speculation in the past since real estate developers came up with exorbitant bids for CIDCO owned plots. Investors also backed these huge prices. However, the regulations emanating from MahaRERA in addition to the overall market slump have contributed towards speculative investors leaving the Indian realty market and higher transparency which has boosted sentiments of homebuyers. As per reports, CIDCO sold 13 Navi Mumbai plots recently which garnered Rs. 323 crore in all. The figures indicate that the realty market in Mumbai is steadily going strong. However, some still feel that CIDCO is quoting higher prices even now and these should correct a little more in the future. Some of the top real estate projects in Nerul include Akshar El Castillo and The Wadhwa Palm Beach Residency among others.