Panvel – A Common Hunting Ground for Builders

April 11, 2007	(2 votes, average: 3.5 out of 5)  Loading ...
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Falling real estate prices have encouraged a multitude of builders to shift their attention towards the development of a new segment in the business cycle. And, the new buzzword is TOWNSHIPS.

The property developers are being bullish on to acquire huge chunks of land on the city’s periphery. Some important locations which are likely to see large developments in near future include Panvel (50 km from the city), Khopoli, Vasai, and Virar.

Panvel is certainly going to zoom away in near future. Real estate developers have acquired up over 2,500 acres of land in Panvel and its surrounding regions. The Evershine Group, largely known for its 256 acre township near Virar railway station, may be going in for another ambitious real estate projects. The group has bought a large area of 1,200 acres.

Of all the mentioned locations, Panvel is gaining high importance with the announcement of construction projects including the international airport, the new passenger train terminal to decongest terminals in Mumbai, and Reliance’s upcoming special economic zones.

Most real estate deals in Panvel range between Rs.15 lakh- Rs. 10 lakh per acre. However, the land rates vary according to its proximity to important places like the railway station and the highway.

The new stand of Maharashtra Government on the development of township has further motivated the builders to come up with more constructions. The Special Township Scheme (STS) under the Maharashtra Regional and Town Planning Act has removed most of the regulatory obstacles in developing land. In addition, the amended act allows the developers to convert agricultural land into a non agricultural tract automatically. The authority has also cut on the stamp duty and keeps townships out of the range of Urban Ceiling Act.

Construction of townships offers the developers with several benefits. Apart from enjoying high business volumes, the developers average out their income against real estate cycles. Nowadays, land rates constitute 60% of the total project cost in metros. It is as low as 20% on the outskirts.

News Published Under:   Real Estate India, Real Estate Developers |

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