Why Are Navi Mumbai Property Prices Likely To Come Down?

Real estate in Navi Mumbai is slated to receive a boost in 2015. The CIDCO or City and Industrial Development Corporation of Maharashtra, is planning to auction almost hundred plots this year. The CIDCO has developed Navi Mumbai into what it is, since its inception in 1972. Developers have often accused CIDCO of rationing land via tenders for increasing prices.

CIDCO is the de facto owners for all property in Navi Mumbai. The first auction by CIDCO was conducted towards the end of the previous month. It involved the auction of six plots which netted Rs 294 crore for the company. Out of the six plots, five were located in Nerul. They were sold for both commercial and residential use. The sixth Navi Mumbai real estate plot was sold at the CBD Belapur. The CIDCO had received eighty two bids, the highest being Rs 2.82 lakh for a plot in Sector 44A in Nerul.

Developers have complained for long that the CIDCO does not auction too many plots. Developers have to face intense competition for acquiring property in Navi Mumbai, which leads to higher values of bids. However, the last year saw 20 plots being auction via two schemes. The CIDCO reasons that it auctions fewer plots because there is much administrative work needed for ensuring that lands are free from encumbrances. Only after proper checks and completion of processes, are the plots rationed on the basis of tenders. The CIDCO was also concentrating on providing mass based housing schemes the previous year.

For 2015, CIDCO has an elaborate plan of action. They have set up a marketing department that target to fetch Rs 3000 crore through auctions this year. For meeting the target, the CIDCO will have to sell around eighty to hundred plots through auctions. At least one scheme shall be offered every month, that shall aim to sell 8 to 9 plots each. Developers too shall be silenced as the complaint against CIDCO for rationing at higher prices would be put to rest. Much land shall be made available to builders.

Both developers and buyers of flats for sale in Navi Mumbai have welcomed the decision taken by the CIDCO. It has taken a section of the real estate market by surprise as the CIDCO has not done this before. With an increase in numbers of plots being offered, price of property shall be brought. Those looking for affordable properties in the city shall have it easier to find the appropriate projects.

Navi Mumbai has emerged as a hotbed of investment in the Mumbai Metropolitan Region for its smooth connectivity with the eastern suburbs of Mumbai and development of financial and IT services. Several infrastructural projects have been planned for Navi Mumbai such as Navi Mumbai International Airport and the Nhava Sheva- Sewri Sea Link which would further boost the real estate sector of the city. Already buyers have expressed interest in the area and have bought properties.

Property Easements

WHAT IS AN EASEMENT?

Easements are one of those seldom thought-of items that when they do rear their ugly head can be a source of frustration and even litigation. The right of a third party-a person or entity-to access and/or use land that you own for a specific purpose, easements come in many varieties of scale and impact. Some are minor, such as a neighbor needing part of your driveway in order to gain entry to his yard; others, falling under the term “easement appurtenant,” could be as potentially disruptive as a beach access road or path open to the public crossing over your property.

UTILITY EASEMENTS

Among the most common property easements are those held by utilities and the Department of Transportation. Such easements allow power companies to install and maintain towers and power lines and entitle the DOT to expand a road and replace water pipes as the need arises. Property owners can still utilize this portion of the land as long as their use does not impede the easement holder’s ability to use its easement. Erecting a non-permanent fixture such as a fence is permissible, while putting in a garage or other type of permanent structure will be considered to unduly interfere with the rights of the easement holder.

THE BURDEN ON THE PROPERTY OWNER

Regardless of the type of easement, property values could suffer because of the potential for unsightliness and inconvenience. In addition, easements don’t typically come with expiration dates, so even as a new owner of a property you’re still inheriting the previous owner’s responsibility to observe the easement holder’s rights and privileges. It’s also important to note that no matter the percentage of land under an easement, property owners are still obligated to pay taxes on the entire parcel.

HOW TO FIND EASEMENT INFORMATION ON A PROPERTY

Given the potential headache an easement can become, it’s crucial that you’re fully aware of any restrictions and requirements tied to a property before proceeding with a sale. Thankfully, there are several options available to you in order to determine the number and type of existing easements.

If you are purchasing a home, typically you would obtain title insurance along with that purchase. As part of the title insurance process, a title company conducts a search to ensure that the title is legitimate and will also generate a report that details any and all issues associated with the property, including easements, outstanding mortgages, liens, judgments or unpaid taxes.

If there is a suspected issue concerning easements on your property you can hire a title insurance company, or private title searcher, to perform a search for easements on the property in question. Depending on the complexity of the search, they may charge a fee for their services, but a good title company will provide you with a comprehensive report.

The deed to the property is another source of information and will have the easements listed and defined as part of its legal description. If a copy of the deed isn’t readily accessible you can obtain one from the county clerk or recorder. Be sure to have the address, parcel number, and current property owner’s name when making the request.

Similarly, the county or city zoning/mapping department is often in charge of keeping records of surveys and plot maps. These documents will contain information on a specific property’s easements, including the exact measurements of the portion of the property considered the easement.

Lastly, you can also contact the utility company or public works department with equipment on the property and request easement information as well as the particular rights of the easement holder.

CONCLUSION

No matter how you do your research it’s well worth the time and effort to be informed of any easements or other issues related to the property you want to purchase, before a sale is finalized.

Ghana Life: A House in Kumasi

Since Ghana became independent in 1957 its population has grown rapidly. First measured in 1960 at 6.7 million, by December 2013 it had reached 25 million. This rate of population growth, combined with the inevitable urban drift in developing economies, has had the effect of pushing up the cost of land and housing in all urban areas and especially in the two biggest cities: Accra and Kumasi. The story of one small house started in Kumasi in 1983 bears testimony to the overall trend.

A year before the plot was purchased it was on offer at 30,000 Ghanaian cedis, but by 1983 the going price had already doubled. The 60,000 cedis paid then had a realistic free market value of about $500. A second adjacent plot purchased in 1986 cost 180,000 cedis. It was already clear that pressure was increasing rapidly on available building land in a good location, in this case on a gentle hillside with a long view near to the University of Science and Technology with easy access to the campus.

The plot was large by later standards, measuring approximately 58 by 55 metres or about one third of a hectare. A rough plan had been drawn up by the owner but an architect was hired to prepare working drawings. Both the architect and the surveyor were lecturers at the nearby university and familiar with local standards and conditions. They had worked together on many similar building projects. The three-bedroom bungalow was a very modest structure by current local standards but it was hoped to keep costs low and construction time as short as possible.

Although building construction began before the end of 1983 it was the end of 1986 before it was completed. The house was the first to be completed in the area and was regarded as having been constructed quickly. Several nearby plots had been activated but their more impressive multi-storey buildings progresses more slowly, presumably waiting for funds to become available for each stage of construction.

The house was used only on occasional visits to Ghana and remained unoccupied for long periods. Maintaining the building became a problem, and in 2015 an evaluation was conducted with a view to selling. A local property manager estimated that the value of the plot, the land alone, had now reached 200,000 new cedis, equivalent to 2000 million old cedis or about $53,000. Thus over 32 years, the land had increased in dollar value by over 100 times. No doubt the buyer will have a long-term plan to build a mansion on the plot and the days of the little house are numbered.

John Powell

To learn more about life in general and the intriguing story of the grassroots industrial revolution in the turbulent Ghana of the second half of the twentieth century, read John Powell’s novels The Colonial Gentleman’s Son and Return to the Garden City or his non-fictional account The Survival of the Fitter. More details of these books and photographs of the informal sector artisans of Suame Magazine in Kumasi will be found on the following websites.