Two different plots in the Sanapda node in Navi Mumbai have witnessed a sharp difference in prices during the auction this year. The difference is looked at as a correction to the soaring realty price in the satellite city.
Builder Association of Navi Mumbai (BANM), a developers' body termed the development as the beginning of the downswing cycle of the real estate sector in Navi Mumbai.
For the last decade, realty prices in Navi Mumbai have kept soaring due to a number of factors from major infrastructure projects like the international airport, Mumbai Trans Harbour Link (MTHL), to the availability of affordable houses.
However, with the change in development control regulations and ample supply of land from City and Industrial Development Corporation (CIDCO), the salable component under the affordable segment will increase further. This is likely to check the soaring realty prices in the city.
Under the Unified Development Control and Promotion Regulations (DCPR) 2020, there is a provision of using up to 5 FSI (Floor Space Index) by paying a premium with certain criteria.
Haresh Chheda, president of BANM said that with the availability of additional FSI under the DCPR 2020, the vertical development will fetch more salable units under the affordable segment. “It seems that the peak of the real estate sector in Navi Mumbai has ended and the recent trends of the auction price of plots put up by CIDCO indicate that the downswing cycle is beginning,” said Chheda, adding that it would be difficult to say how long it will continue, but homebuyers will have a good time buying houses with a huge price correction in the offing.
In 2016, a 3050 sqm plot in Sanapda had fetched Rs 3.39 lakhs per sqm. However, a similar attracted a maximum of Rs 2.87 lakh per sqm in January 2021 and then Rs 1.65 lakh per sqm in August 2021.
Even other nodes like Nerul, Kharghar, and Panvel saw a drop in bidding prices. “As developers will have more units with additional FSI, the final benefits will go to end home buyers,” said Chheda.
However, he said that it will take at least two to three years for home buyers to get the benefits when the developers will actually come up with projects developed with additional FSI under new DCPR, 2020.