The City and Industrial Development Corporation (CIDCO) in Navi Mumbai will bag Rs 1,355 crore from the e-auction of 22 plots in the Navi Mumbai area, according to results of an e-auction published on the website of CIDCO. The e-auction also received a record bid of Rs 5.54 lakh per sq m for a 5,526-sq-m plot ― the highest in the satellite city of Mumbai.
The plots are located in areas like Airoli, Koparkhairane, Ghansoli, Belapur, Nerul, Sanpada, and Vashi.
The plot that fetched the highest rate of Rs 306 crore is located in Sanpada around Palm Beach Road and has a sea view. However, according to local developers, the reason for this sky-high rate was the increased floor space index (FSI) given to it, thanks to the implementation of the Unified Development Control and Promotion Regulations (DCR) for all of Maharashtra, excluding Mumbai.
Under the unified DCR, developers are eligible for additional FSI against payment of a certain premium. FSI is the ratio that decides the total height of a building.
Another reason for optimism in the Navi Mumbai real estate market is the lifting of height restrictions, added real estate sources. In July 2022, the Airports Authority of India (AAI) had agreed to grant no-objection certificates (NOCs) for height of buildings located within a 20 km radius of the proposed Navi Mumbai international airport.
Over 200 projects were stuck half-way due to the height restrictions, and no fresh purchases were taking place. However, as the height restriction has now been lifted, several land deals are being witnessed.
Manohar Shroff, a local developer from Navi Mumbai, said, "The implementation of unified DCR in Navi Mumbai by authorities has resulted in this optimism by the developers. There is a possibility of getting FSI of up to 5 now in Navi Mumbai, which has resulted in developers being in a position to bid aggressively for purchasing land parcels."CIDCO had put up 30 land parcels for auction. However, the results of the e-auction for eight plots are not yet out. These plots have been reserved for residential, commercial, mix-use and service industries.