Prices set to crash by March 2011.
By Dr Sanjay Chaturvedi
When Sakinaka and Powai could not avail the advantage of proximity to International Airport in Mumbai, predicting a bull run of property rates at Navi Mumbai is just a myth and mass hysteria created by small syndication of vested interested in Navi Mumbai’s real estate market.
According to research conducted by Megus, a project Management Consultant and Research, there were 7 crore sq.ft of residential projects put on display in the recently concluded property exhibition. Thane, Panvel, Dombivali-Kalyan and Panvel areas will add 10,000 acres of residential developed areas in next five years. India Bull and Lodhas put together are constructing more than 1000 acres in the region.
According to RTI inquiry with the sub divisional registrar for property documentation, the fall of almost 80% in last six month was witnessed. Where an average 1200 flats were booked every month during 2007 till early 2009 and since March 2009 till November 2010, in all the nine nodes of Navi Mumbai, an average registered documents of 120 per office was recorded, shows a steep fall in the sales and volumes in the region because of unreasonable property prices. In Kamothe where 12% scheme plots existed, the sale was highest because of free from transfer formalities. At Kharghar, the sale was worst and even ISKCON card could not attract buyers.
Airport will enhance land rates meant for five star hotels, logistics and transit utilities. The same was in Mumbai where Sahar International Airport could not give advantage to Sakinaka nor to Powai. The reason for increase in property rates due to Airport clearance is nothing but seer business tricks played by vested interest and hand-in-glove between investors and political propaganda.
Real Estate peers are estimating that since market will be flooded with millions of sq.ft in next five years in the region, the prices will not sustain at this artificial level.
At present, according to newspaper classifieds, Vashi offering IT space for Rs.30/- per sq.ft per month. The best scale to map any market is to have measurement of commercial lease rental to its capital value. Corporates are opting for lease instead of buy options because of capital values are having great disparity with on going lease rentals.