Realty rates to get realistic in Navi Mumbai

After Environment Ministry's nod to the proposed airport shot up property prices, they are set to become more reasonable, particularly in Ulwe and Donagiri

Realty rates to get realistic in Navi Mumbai

After Environment Ministry's nod to the proposed airport shot up property prices, they are set to become more reasonable, particularly in Ulwe and Donagiri

Property prices in Navi Mumbai, that have been on a rollercoaster ride ever since the satellite city was proposed as a site for the international airport, are expected to come down to more reasonable levels, especially in Ulwe and Donagiri.

Property rates at Donagiri and Ulwe near the upcoming Navi Mumbai airport are expected to come down to more reasonable prices

Builders cite many reasons for the expected depreciation, prominent among which are: limited land resources, height restrictions, development and affordability.
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The real estate prices in the two locations saw an unmatched escalation after the Environment Ministry cleared the site for the airport late last year.

The rates had shot up to as much as Rs 70,000 per sq m in Ulwe, making it the most sought after destination owing to its proximity to the proposed airport. But now the prices are pegged to go down to Rs 50,000 per sq m.

"The rates at one point of time were very high. But we are expecting a stabilisation soon. There are enquiries but not everything is turning into deals," said Manohar Shroff, secretary, Navi Mumbai Chamber of Housing, a prime association of builders and realtors in Navi Mumbai.

Stating the primary reason for the downturn, Shroff said, "The availability of land has restricted the sales. Consequently, prices have taken a hit. Although, NRIs still demand places close to the airport."

Ulwe is barely two kilometres from the airport site. So builders had begun to gravitate toward it, driving up the prices, which earlier were between Rs 30,000-40,000 per sq m.

The other drawback is height restrictions on projects upcoming in areas. Builders' reserve in investing in the region because of limits on how far they can go vertically has pulled down the prices.
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"Being close to the airport brings many restrictions. Developers have to wait for the airport authority to go ahead with the construction because buildings cannot go above certain heights in the restricted area.

So builders are apprehensive," said Arvind Goel, president of the Builders' Association.

Add to that, the prices in areas surrounding Ulwe and Donagiri, which are bound to reflect on property rates in the two locations.

"The infrastructure in these places is not as good as that in other developed towns in the satellite city.

In CBD Belapur, prices are nearly Rs 6,000-7,000 per sq ft and it is well connected and developed. So, prices in Ulwe cannot be irrationally higher than that," said Goel.

Meanwhile, builders agree that they are expecting a certain correction in realty prices in Navi Mumbai because property had gone beyond the reach of the common man.

"Enquiries are not turning into deals, which is a bad news for builders. We expect the prices to get corrected soon," said another builder from Navi Mumbai.

Ek Cutting!
Dear estate
Before Navi Mumbai got the sanction to go ahead with the airport, Ambernath was also being considered as a viable option. After the airport finally went to Navi Mumbai, real estate prices in Ambernath and nearby areas shot up, and are yet to be corrected at many places.