Real Estate Scenario In Navi Mumbai

Navi Mumbai was established as a twin city of Mumbai in 1972. Connected by the Vashi Bridge, the main purpose behind the development of Navi Mumbai was to decongest the overcrowded city of Mumbai.

Famous for being the largest planned city in the world, Navi Mumbai was also created to meet the increasing demand for real estate. It is now one of the most popular real estate destinations for both residential and commercial purposes with many residential complexes, shopping malls, SEZs and IT Parks.

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The City and Industrial Development Corporation (CIDCO) has carved out 12 nodes for the development of the region. The 12 nodes are divided into two regions, North and South. Most of the corporate real estate activity and retail development is limited to North Navi Mumbai. In the last 5 years, North Navi Mumbai has seen 15-20% increase in price on year over year basis. This has resulted in the increase in residential demand in the area. Some of the famous corporate parks in North Navi Mumbai include Reliance Corporate Park, Dhirubhai Ambani Knowledge City, MIDC and CBD among others.

Though South Navi Mumbai is yet to see major corporate activity, the area holds huge potential for infrastructural development. For instance, there are few new offices and educational institutes like NIFT and TATA Memorial Research Centre coming up in Kharghar, South Navi Mumbai.

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South Navi Mumbai is also expected to be driven by 5 planned infrastructure projects. These are Mumbai Trans Harbour Link, Navi Mumbai Airport, Navi Mumbai Special Economic Zone, Navi Mumbai Metro and Belapur-Uran Rail Link. Prices in South Navi Mumbai are driven primarily by many planned large-scale infrastructure projects. However, most of these projects have been delayed causing a slowdown and piling up of inventory in South Navi Mumbai.

A number of projects are currently under construction in South Navi Mumbai. According to a survey, there are 12 upcoming projects, 1 new launch, 143 under construction projects and 183 ready to move projects in Kharghar. In Panvel, there are 17 upcoming projects, 1 new launch, 111 under construction projects and 52 ready to move projects available. There has also been a sharp decline of 54% in the units sold from April 2013 to October 2013 which has resulted in a rise in inventory, particularly in Panvel with 8, 826 units.

Off late, Navi Mumbai has been experiencing a downturn, the main reason for which is the delay in key infrastructure projects. Price and demand stagnation is expected in Navi Mumbai in the next two years apart from limited number of new launches due to decrease in land availability.

For information on projects and builders in Navi Mumbai, visit PropTiger.com