RERA effect: Cidco’s 36,000 sq metres plots sold for 20% less rates

By | June 10, 2017

Six plots in New Panvel, totally measuring around 36,000 sq metres, on Tuesday fetched City and Industrial Development Corporation (Cidco) over Rs 245 crore. Builders say the rates at which the plots were acquired by developers are around 20% lesser due to the new Real Estate (Regulation & Development) Act (RERA).
Vice president of the Navi Mumbai chapter of Maharashtra Chamber of Housing Industry Manohar Shroff, said: “All the six tender plots measuring 6,000 sq metres each were bought for less than Rs 1 lakh per sq metre. This is 20-24% lower than last year’s rates at New Panvel.”

Developers said that due to the new RERA guidelines many are cautious and not fully accepting it at the moment. This has led to the plots being sold for a bit lower rates.
Shroff said it may take some time for all builders to accept that RERA is here to stay and adapt to the new regulations.
While three plots have been acquired by Neelsiddhi Group, two plots have been bought by Satyam group and one by Millennium real estate group. Neelsiddhi had made the winning bids for the plots by quoting the rates of Rs 76,000 per sq metre for one plot and Rs 65,250 per sq metre for the other two plots. Millenium acquired one plot for Rs 80,000 per sq metre; while Satyam group bid Rs 96,000 per sq metres for one plot and Rs 77,000 per sq metres for the second.
Shroff added: “RERA should ensure there are no anomalies in land sales. Now, we have to obtain commencement certificate first and then announce bookings for flats. Builders must finish the projects within the deadline set up, or risk paying penalty. All this is being done to make real estate transactions transparent.”
Mohan Arora, a Navi Mumbai developer, feels this is a healthy sign for the market. “If the land prices are reasonable then there will be good demand for housing because supply will come at reasonable rate,” he said.
However, the secretary of Builders Association of Navi Mumbai, Haresh Chheda, said: “The tender sales of the New Panvel plots indicate builders are cautious due to RERA. There is also GST which some builders feel hampers their business. But, if there is a consistent land correction due to RERA, then I welcome it as it will benefit everybody — public, state and the builders.”

Source: Times of India