Sq ft rate touches Rs 13,000 in Ghansoli!

Auction of four plots last week more than doubles existing sq ft rate in the area, brings it close to that prevailing in Andheri, Santacruz

In a scathing testament to the increasing real estate prices in the Mumbai Metropolitan Region, a plot in Ghansoli in Navi Mumbai, nearly 40 km from the island city, was sold at a whopping Rs 12,800 per sq ft last week. The rate is nearly equal to what you would pay for a flat in the Andheri-Santacruz belt. The existing market price in the area is close to Rs 6,000 per sq ft.Last week, the City and Industrial Development Corporation (CIDCO) of Maharashtra, which holds nearly all the major land banks in Navi Mumbai, had put four plots in Ghansoli's Sector 8 up for sale.


Expensive: CIDCO, which holds nearly all the major land banks in
Navi Mumbai, had put four plots in Ghansoli's Sector 8 up for sale.
Pic/Shadab Khan

The bids were opened on May 19 and the highest bid for plot number 15, which has an area of 2,343 sq m, was Rs 1.28 lakh per sq m (approximately Rs 12,800 per sq ft) against its reserve price of Rs 20,400 per sq m (Rs 2,040 per sq ft). The winning bid was made by Swaraj Omkar Enterprises. Builders attribute the rise in real estate prices in the region to the scarcity of land in Navi Mumbai and the positive impact of the green nod received by the proposed international airport. Manohar Shroff, secretary, Navi Mumbai-MCHI, claims Ghansoli is also no longer the jungle it was perceived to be.

"Ghansoli has been developed well and the infrastructure is good. It has good connectivity and is barely 20 minutes from Kanjur Marg. All these factors justify the amount spent by the builder," said Shroff. Builders also attribute the spiking land rates to CIDCO putting fewer plots on the block than is the requirement every year. They say the body releases 10,000 sq m of land every year when it should be releasing a minimum of 50,000 sq m. "This is affecting the prices of the area. CIDCO is the biggest landholder in the satellite city and if it holds back land, that leads to a scarcity. Everyone wants affordable housing but when the builders themselves get land at such rates, how can you expect them to give away houses at affordable prices?" said Atul Agrawal of Elimar Infrastructure, who is also the Chairman of MCHI-Navi Mumbai. Elimar Infrastructure bought two of the four plots auctioned last week.

Agrawal also extolled Ghansoli's virtues. "The Palm Beach road extends to Ghansoli and proper infrastructure is in place in the area. There is no difference between Koparkhairane and Ghansoliu00a0-- colleges, IT parks and industrial areas are close to Ghansoli too," he said. However, another builder from the area, who did not wish to be named, blamed his ilk for the rise in realty prices. "Builders have no one but themselves to blame for the hike in real estate prices in Navi Mumbai. When the reserve price for the plot in question was Rs 20,000, why did the builder have to quote six times more? The usual policy is to avoid going beyond two-three times the reserve price," he said.

Rate chart
Details of the plots auctioned last week: