CIDCO hikes reserve prices, Navi Mumbai property rates could spike
Buying that dream home in Navi Mumbai is set to become a more expensive affair. The City and Industrial Development Corporation (CIDCO) the town-planning agency for the satellite city has increased the reserve prices of land across 15 nodes in Navi Mumbai.
Reserve price takes into account the average land development cost, but does not include any profit mark-ups. The agency’s board has approved a hike between 20-25 per cent in reserve prices of plots in Navi Mumbai.
This means that the market value of real estate will go up across the satellite city. Haresh Chheda, treasurer, the Builders Association of Navi Mumbai, said, “The hike in rates of reserve price will escalate land prices.
The base price is calculated after adding several factors, including the reserve price and the FSI (Floor Space Index) of a particular plot. This means that there would be a 2.5 per cent hike in the base prices of residential plots. If this continues, the concept of affordable houses in Navi Mumbai will never become a reality.”
Officials at CIDCO maintained that the hike is a routine, annual process. Since 1985, the town-planning agency has been fixing the reserve price of land through revision of reserve prices in each node every year. “The reserve price keeps changing and (the hike) is an annual standard procedure,” said Mohan Ninawe, chief public relations officer, CIDCO.