Due to the delay in the proposed Navi Mumbai international airport, the realty sector in the area is affected badly. Navi Mumbai witnessed a fall of property prices.
Property prices in Navi Mumbai were expected to shoot up. The proposed international airport was believed to boost the property prices in the area. However it will be, as the project is delayed, a setback to the realty sector.
Since the proposal of international airport in 2010, the property prices in and around the locality have doubled and tripled. The announcement had an impact on the prices in areas like Kalamboli, Kharghar, Panvel and Ulwe. Prices in all these neighborhood areas shot up highly.
The new airport was proposed to be developed at Navi Mumbai. It, for pure aviation purpose, needs around 1,160 hectares of land. Additionally it needs another 225 hectares of land is required for other purposes.
Out of these 1160 hectares, 291 hectares of land is yet to be attained. Prithviraj Chavan, the Maharashtra chief minister, said in a reply in the parliament.
As the land acquisition is not yet completed, it will take two to three years more to begin the construction. The Airport project could possibly be begun only by 2015 end or 2016. It means that the airport at Navi Mumbai will be over only by 2021 or 2022.
Chandresh Mehta of Rustomjee said that the delay will affect the real estate sector only for a short term. As the airport is to come, though delayed, it will have an impact on the realty prices.
The Mumbai based developer added that the delay is common for such projects. So in his opinion it will not affect the realty much. In the long run the location will remain hotter.
Capital value appreciation in Panvel hiked by 22%. This is the situation in other areas as well. Though Airport projects are not directly affecting realty sector, it still has an adverse impact on the sector.