50% hike in realty rates

Upcoming airport, coupled with Khargar's infrastructure cited as major reasons u00a0for price hike; builders say rates are expected to touch the Rs 12,000 mark

BUILDERS are cashing in on the surge in home-buyer and investor interest in Navi Mumbai properties following the final approval given to the airport in the satellite city.

Prices have seen a major upward swing and flats in one project in Kharghar are going for as much as Rs 6,400 per sq ft up nearly 50 per cent from Rs 3,800-Rs 4,400 which was prevailing in the area before the airport's confirmation. This means that a 1,000 sq ft flat in the project will cost you as much as Rs 64 lakh.


Prices have seen a major upward swing after the airport confirmation and flats in one project in Khargar are going for as much as Rs 6,400 per sq ft

While the airport is touted as the major reason for the price hike, builders are also citing factors like Kharghar's infrastructure, central park, its emergence as the next educational hub and plans of connecting Mumbai to Kharghar via Metro as reasons. These factors, they say, make living in the area a very attractive proposition.

The Navi Mumbai real estate exhibition also begins today and the organisers are expecting nearly three lakh visitors.

Bhupendra Shah, president, Builders Association of Navi Mumbai, said, "The airport has given a new boost to sales of the flat.
u00a0
We are expecting the number of visitors to be high and are also sure that many of them would end up buying flats here. With all this interest in the area, the prices are surely expected to go up."

MiD DAY had reported recently on how the airport had made Navi Mumbai the darling of NRI property investors as well.

'Justified hike'

Nalin Shah, of the Shah group, who is charging Rs 6,400 per sq ft for his Kharghar project, said, "We are charging this much because residences in our project have some of the best views and it is in a prime location. We have parks and all the amenities that you would expect in a project of international standards."

While some real estate experts have cautioned builders against a sudden big jump in prices owing to the possible derailment of growth following a small correction some time in the future (see box), Shah is optimistic. He says prices in Kharghar will touch Rs 12,000 per sq ft within three years.

'Tread Carefully'

Manohar Shroff, secretary, Navi Mumbai Chamber of Housing, has a word of caution for builders with projects in the satellite city.

"If there is a small correction in rates, the prices will come down drastically and affect the dynamics of real estate over here.

Builders should think twice before quoting sky-high prices andu00a0making the area unaffordable," he said.

Other Areas

The airport has resulted in a hike in prices in areas like Ulve and Panvel too. Rates in Ulve have gone up from Rs 3,250- Rs 4,250 per sq ftu00a0 to Rs 3,750- Rs 5,250 per u00a0sq ft. Panvel has also seen a 1,000-rupee hike from u00a0Rs 3,000 to Rs 4,000 per u00a0sq ft.

Meanwhile, Navi Mumbai builders are also expecting a rise in demand for commercial property. "We are expecting a rise in demand for commercial property as well. The airport will ensure that there are many takers for such property," said Bhupendra Shah.

Rs 64 lakh
The price of a 1,000 sq ft flat in Khargar

Rs 3,800
Rate per sq ft before the airport nod

Rs 6,400
Rate per sq ft post the clearance to the airport