A prime plot on Palm Beach Road in Navi Mumbai has set a new record in a CIDCO auction, fetching an impressive bid of ₹6.46 lakh per sqm. The demand for land in this coveted location remains unprecedented, reflected in the high bid. However, the auction witnessed a surprise as 18 out of 36 CIDCO plots received no bids, attributed to the elevated base price set by CIDCO and prevailing market conditions. CIDCO amassed a total of ₹1,171.80 crore from the successful plots.
Palm Beach Road Plot Breaks Records
In the recent CIDCO auction, plot number 23 in sector 4, located at the entrance of Nerul from Palm Beach Road, achieved a groundbreaking bid of ₹6.46 lakh per sqm. This residential cum commercial plot spans 2,459.33 sqm with an FSI of 1.5.
The highest bidder, Falcon Electro-Teek Private Limited, secured the plot at a cost of ₹159.07 crore plus 18% GST with their bid of ₹6,46,803 per sqm. While this bid is slightly lower than the previous record, it remains substantially higher than the base price set by CIDCO.
Unprecedented Demand on Palm Beach Road
The robust bidding activity for plots on Palm Beach Road underscores the scarcity of available land in the area. Industry sources reveal that developers are joining forces to bid for these plots, often forming companies to secure a share in the upcoming developments.
Vasant Bhadra, President of Builders Association of Navi Mumbai (BANM), explains, “There is a huge demand for big flats from 3 BHK to 6 BHK here. However, there is no plot left on the Palm Beach road, and hence anything that is offered is grabbed.”
Challenges Faced by CIDCO
Despite the success of the Palm Beach Road plot auction, CIDCO encountered a setback as 18 plots out of 36 received no bids. Industry experts attribute this to CIDCO’s decision to increase the base price significantly and the existing market conditions.
Vasant Bhadra criticizes CIDCO for setting “unreasonable” base prices, deterring potential buyers. Haresh Chhedda, former President of BANM, expresses concern about the intense competition among developers and unrealistic bids, fueled by CIDCO’s elevated base prices.
Manohar Shroff, Senior Vice President of CREDAI-MCHI, Navi Mumbai, cautions that CIDCO needs to reconsider its pricing strategy, considering the lack of enthusiasm among individual buyers and the impact of proposed airport-related height restrictions.
₹1,171 Cr Windfall for CIDCO
While the successful bids brought CIDCO a windfall of ₹1,171.80 crore, the lack of interest in 18 plots highlights challenges in the real estate market. Industry experts emphasize the need for CIDCO to reassess its base pricing and adopt a more transparent tender process.
