Navi Mumbai property rates could spike as CIDCO hikes reserve prices

Q: Buying a dream home in Navi Mumbai could be more expensive as CIDCO hikes reserve prices.

Supratim,

6th July 2015

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Replies (3)

But as per the CIDCO officials, hike is an annual standard procedure. Since, 1985, the town-planning agency has been fixing the reserve price of land through revision of reserve prices in each node every year.

Dhiraj,

6th July 2015

Comment

Good Morning Dhiraj,
Can you show me how the reserve prices will go up every year across various nodes at Navi Mumbai?

pradyumanapte, Mumbai

6th July 2015

Hi Pradyuman,
In 2014-15, reserve rates in Airoli, Ghansoli, Koparkhairne, Vashi, Sanpada, Nerul, Belapur Kharghar, New Panvel, Kalamboli, Kamothe, Dronagiri and Ulwe were Rs. 6810/5910/7940/11600/9680/9960/6980//6980/5910/4500/4500/5070/4500 per square meter respectively whereas in 2015-16, these rates are Rs. 7500/6500/8735/12730/10650/10930/7680/7680/7100/5400/5400/5580/4950 respectively.

Dhiraj,

6th July 2015

Hi Surinder,
What is Reserve Price? Has the agency's board approved the hike?

Ananya,

6th July 2015

Comment

Hi Ananya,
Reserve price calculates the average land development cost, but it does not include any profit gains. The agency's board has approved this hike between 20-25% in reserve prices of plots in Navi Mumbai.

Surinder,

6th July 2015

@Surinder,
This means the hike in rates of reserve price will increase land prices. What is base price and how is it calculated?

Ananya,

6th July 2015

Good question Ananya,
The base price is calculated after adding several factors, including the reserve price and the FSI of a particular plot. This means that there would be a 2.5% hike in the base prices of residential plots. And if this continues, the concept of affordable houses in Navi Mumbai will never become a reality.

Surinder,

6th July 2015

Right Supratim,
Realty rates across the satellite city are set to go up by close to 2.5% as the town planning body CIDCO conducts its annual hike of reserve prices of land across 15 nodes in Navi Mumbai.

Surinder,

6th July 2015

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