Real Estate developments

Ahmedabad is proving to be an ideal city for acquiring residential and commercial property due to excellent infrastructure that the city has and the kind of facilities it offers. The Center's announcement that it will invest Rs. 5,500 crores across seven mega cities in the country of which Ahmedabad is a major development. Gujarat Institute of Housing and Estate Developers has shown keen interest in promoting Ahmedabad as an investment destination.

Ahmedabad has high affluence and several real estate developers in Ahmedabad, brands and organizations are setting their sights on them. There is a strong sentiment for real estate investments; Ahmedabad presents excellent prospects for growth.

Since the declaration of Ahmedabad as a mega city in the last Union Budget the real estate activity has gained momentum. The recent real estate trend in Ahmedabad is inclined towards residential, commercial including retail activities. With 80 per cent of the urban population of Gujarat, housing large corporates and state and district level public offices, Ahmedabad has been ranked the seventh highest in Market Potential Value (MPV) among all the 784 cities in India.

The western parts of the city are thriving areas for residential properties in Ahmedabad. The integrated townships are the norm; major players like Sahara Group, Adani Group to name a few are launching them. The one being developed by Sahara will house a shopping mall, multiplex, hospital, post office and a petrol pump.

Areas in Ahmedabad which have seen improvements in roads and public transportation and other infrastructure are coveted areas for real estate activity. Bungalows and apartments are coming up on the new four-lane road developed from SG Road to the new Sardar Patel Ring Road. The high-end residential properties in Ahmedabad are investor-driven.

All of these developments bode well for real estate investing and selling, buying and leasing. Ahmedabad real estate scene is open to trying out new models including mixed use developments and service apartments. The total investment in malls over the next couple of years is pegged at Rs 700 crores.

A number of retail players like Star India Bazaar, Big Bazaar, Shoppers' Stop, Pantaloon and West Side; including international brands are eyeing the Ahmedabad market for its retail potential.
Ahmedabad offers great infrastructural base and excellent opportunities for commercial purposes.

Appreciation

The real estate trend in Ahmedabad indicates that the property prices will continue to rise at a very alarming rate. Demand for property is unlikely to saturate in this city even in the distant future due to its ever increasing value as a major commercial and industrial hub and contributor to the Indian economy. The strategic locational advantage, superior infrastructural facilities and great potential for development of privately promoted ports are as great a contributor.

Where wide roads have facilitated the movement and in select areas prices have doubled and even tripled with demand exceeding supply. Though residential properties in Ahmedabad are well below the prices prevailing in metros, villas are in good demand and with the requisite infrastructure; investors can be assured of a lucrative yield in the long term.

The size of the residential market in Gujarat has been estimated at over Rs1500 crores per year Already residential property prices in Ahmedabad have shot by 10%-15% on an average. Property price in SunCity can be expected to go up by 25-40% according to industry experts.

Similarly, residential apartment prices are increasing and the price bracket could be in a higher range. With the self induced prosperity apart from the IT boom that lead to expansion in the City, the real estate boom is here to stay. The influx of companies, retail chains and IT parks has necessitated frenetic construction even as more real estate is being acquired by developers.

Commercial property development is visible in areas like CG road, SG road, Ambavadi and Navrangpura and is driven by both end users and investors. Many people opting for Ahmedabad with the motive of doing business also look for residential property.

Real Estate trends for NRIs

The Gujarat government envisages Ahmedabad as a world class city. In pubic-private partnership, it is looking to upgrade the city to make it, clean, viable and self sustaining.

Better acknowledged to be the capital city of the state of Gujarat, Ahmedabad is the seventh largest metropolis of India. A city more popular for its industrial background, it is growing and new areas in the outskirts are becoming well off suburbs. This makes Ahmedabad a real place of growth.

Ahmedabad is fast flourishing into a popular choice for foreign direct investments (FDI) such as joint ventures and real estate investments. Although, the transformation of the city is slow and steady but the past few years have witnessed major industrial development. The cost of living in the city is still lower than may be in other metropolitans.

With an improvement in its infrastructure and facilities, it is no wonder then that many new ventures are looking forward to the city. This may serve as a decent investment option for NRIs pondering over to yield good returns in near future, as the real estate prices in Ahmedabad are sure to take a jump.

The construction activities and new real estate projects in Ahmedabad have pushed property rates to new highs. As a location for property investments, Ahmedabad certainly has good prospects in store for prospective investors with a fair share of risk and this might be one of the key reasons for investments being marginal.

Ahmedabad enjoys a very strong connection with Gujarati NRIs, whose spending power and industrial skills have encouraged a healthy shift in property rates of late. Ahmedabad commercial real estate is still on infant stage and is developing in and around C.G Road and Ashram Road, along with the old city area. Staying in step with demand, the present supply of commercial space is determined to be 0.3 million sq. ft. with an absorption rate of 60-65%. However, the market is expected to zoom in the wake of new construction activities.

This commercial city of Gujarat is likely to grow by leaps and bounds in the next few years. The old city area and Sahibag, located north of it, are regarded as the old residential areas. Western side of Ahmedabad is gaining popularity as new residential areas, between Inner ring road and C.G. Road, such as Bodakdeo, Satellite, Vejalpur, Jodhpur, and Vastrapur.

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