Realty sector fears that the delay of Navi Mumbai Airport will affect them. However the impact of the delay would remain only for a short term as the airport will come up, though lately.
Navi Mumbai Airport was expected to be completed by 2016-17. However this will not be completed by then and the delay is certain.
The construction of an international airport was proposed in 2010. Since then the property prices in the area have been shooting up. But now once the airport project is delayed the property prices are falling here.
The proposed airport has boosted the property prices of Navi Mumbai and its surrounding areas. All these areas will now be affected by the delay of Navi Mumbai Airport. These areas include Kalamboli, Kharghar, Panvel and Ulwe.
The main reason for the delay is the failure to acquire sufficient land for the airport. 1,160 hectares of land is needed for pure aviation purpose. Another 225 hectares of land is also needed for other purposes.
The airport authority still has to find around 291 hectares of land. Only the remaining land is acquired by the authority.
While replying in the cabinet, Maharashtra CM Prithviraj Chavan said that the government has to acquire 291 hectares of land for the Navi Mumbai Airport.
The construction of the airport can possibly begin only after finding the remaining land. It will take another seven to eight years for the completion of work. In short it will be completed only by 2021 or 2022. This is possible only if the construction begins within two to three years.
Rustomjee’s Chandresh Mehta opined that it, the delay, will affect realty sector only for a short term. Though delayed, the airport will come up. So this will have only a light impact on the realty prices. In his opinion delay for such projects is common.
