MUMBAI: The "best" compensation deal ever in the country that was struck by the state government with project-affected persons (PAPs) on Monday to clear the way for the proposed Navi Mumbai airport also brings land worth over Rs 10,000 crore into the real-estate market for development.
Besides the land already acquired, the 671 hectares more required for the airport is owned by the PAPs and is mainly coastal land used for agricultural purposes, which till recently was valued at Rs 200 per sq m. The land the PAPs will now get as compensation along the Mumbai-Pune bypass near Panvel will on average fetch Rs 1 lakh per sq m. It will form a new urban hub of Navi Mumbai named Pushpak Nagar.
City & Industrial Development Corporation (Cidco) officials said the moment compensatory land distribution is started in Pushpak Township in the next couple of months, the land will start gaining value since it will then officially be an urban node of Navi Mumbai.
"The PAPs who will get an average 3,000 sq m of land each in Pushpak Nagar may not construct the whole area and might bring the land in the market for real-estate development," a government source said. "Since the land is close to Panvel, it will be the next urban hub after Kharghar and other surrounding nodes."
If the average FSI of 2 - as agreed by the government - is considered, the value of the land goes up to Rs 20,000 crore, making it one of the most attractive compensation deals in the country.
The 160-hectare Pushpak Nagar to be developed close to the Navi Mumbai airport site is the next real-estate gold mine. Of the 160 hectares, about 105 hectares will go to the PAPs, while the rest will be used for the development of civic amenities such as roads, sewerage and water supply.
"The value of the land here will be minimum Rs 60,000 per sq m, and once the airport work begins it will touch Rs 1.20 lakh per sq m for sure," Cidco MD Sanjay Bhatia said.
According to him the value of the land will go up at market rate within a few months from now since Cidco is about to start distributing the ownership of land to the PAPs in Pushpak Nagar against acquisition of their originally inherited lands in the airport area.The airport itself is to come up on 2,260 hectares.