Landowners have lowered the asking price of land parcels in a bid to attract buyers. Real estate sector has been badly hit due to slowdown in economy, demonetisation and the government's crackdown on black money.
City Industrial and Development Corporation of Maharashtra (CIDCO), the nodal agency for Navi Mumbai, is auctioning plots around Navi Mumbai International Airport at 7 percent less than the price it received for the land in New Panvel, as per the Financial Express report.
The report said that the town planning agency got 40 percent less price for auction of six plots in New Panvel in May than the price prevailing in November 2016.
Though the land prices have remained stable in Mumbai city, distant suburbs and Navi Mumbai have seen some correction in prices.
Somy Thomas, MD (valuations and advisory) at Cushman Wakefield India told FE that developers manage to purchase land at same prices after three or five years. There has been little or no price correction for land in Mumbai.
Thomas said there is a time correction instead of price correction in Mumbai.
There have been very few big ticket land deals in Mumbai. Siemens sold its 3-acre land parcel in Worli to K Raheja-GIC combine for a consideration of Rs 610 crore.
Ashutosh Limaye of JLL India told FE that land at prime locations will command a premium as they are very few.
Drugmaker GlaxoSmithKline Pharmaceuticals sold 60-acre land parcel at Thane for Rs 555 crore to Oberoi Realty which has been on the block since 2014. The company was forced to cancel the sales twice earlier. Previously, the company was expecting to get Rs 1,500 crore for the said land parcel.
