The current reserve price was due for revision on March 31, 2021 and it will be retained at the current levels until March 31, 2022.
Over the last few years, the property sector has been severely affected due to economic recession caused by outbreak of pandemic and prolonged lockdown. To strengthen the real estate sector and regain the pace of overall economy, the state government has also decided to not increase the Ready Reckoner Rates for 2021-22 and have maintained 2020-21 Ready Reckoner Rates for 2021-22.
“Considering the current economic crisis led by outbreak of pandemic and lockdown, CIDCO has decided to freeze the reserve prices of land in Navi Mumbai and surrounding areas. This shall give relief to the real estate sector and stabilize the prices,” said Sanjay Mukherjee, VC & MD, CIDCO.
The reserve price of land of the node represents the break-even rate of land and infrastructure development cost and it is worked out by adopting the present worth concept. It is determined every year on a per sq meter basis.
The reserve price approved by the Board is valid for one year and thereafter it is appreciated at a percentage decided by the CIDCO’s board from time to time, and varies from 5% to 15% till new reserve price is worked out on the basis of project report.
Based on the reserve price, the land prices for different land uses in the node are fixed in accordance with the land pricing and disposal policy approved by the board.
CIDCO’s decision to freeze land reserve prices is expected to benefit the residential as well as commercial property developments in Navi Mumbai market, in turn the overall real estate sector.