Dire economic situation and rising inflation has taken a heavy toll on the Navi Mumbai real estate market in the past 2 months. The proof of this collapse has come from the registration figures in the registration dept and the amount of new proposals being submitted in the NMMC and CIDCO town planning dept. Developers are struggling for cash and coming up with creative schemes like 80:20 scheme wherein the buyer pays only the 20% booking amount and the rest only after the project is completed, hence the buyers avoid paying the pre-emi interest to the bank. Most of the builders only make inquiries and only submit proposals but do not make further payments to obtain approvals. Developers have no money to pay the fungible FSI fee. Fungible FSI is the additional money the developer has to pay for enclosed balconies, flower bed area etc. Earlier the builders used to get these areas free but after manipulation was detected by most of them, the BMC smartened up and started charging money for the same.
This slowdown is the most significant in the past 2 years. One only needs to visit the registration dept in Belapur to witness the complete collapse of the market.
The effect of this collapse is primarily in the newly developing areas like Ulwe, Kamothe, Khandeshwar, Panvel, Dronagiri, Kharghar etc. Premium locations in well developed areas like NRI complex, Sector 19 Nerul, etc are relatively less affected due to the scarcity of good flats in good societies in these localities.
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