Ahmedabad’s real estate market is on an upswing because of to the huge growth of its industrial sector and the overall high rate of development, both in commercial and residential terms. It is the largest city of Gujarat, and also its commercial capital. It is the hub of the textile, pharmaceutical and chemical industries. Apart from being a well-established education centre (with national institutes like IIM, NID and CEPT) Ahmedabad has also established itself as a major IT/ITeS and retail destination. The combination of the favourable factors naturally makes it a highly desirable residential destination.
Ahmedabad’s real estate market has grown tremendously over the past decade thanks to ultra-progressive policies and intelligent development governance. The city is providing extraordinary and unprecedented returns on the real estate front, and is one of the most exciting investment destinations in India today. Developers and investors from all over the country are beating a straight path to Ahmedabad.
Office space investments have shown amazing growth, with capital values for commercial properties rising by as much as 20-30 per cent in areas such as Prahladnagar, Sarkhej-Gandhinagar. Highway, Ashram Road and some parts of East Ahmedabad. Residential property appreciation in the city has been to the tune of 50 per cent over the last three years. The areas currently commanding the highest demand for residential space are South Bopal, Bodakdev, Vastrapur, Nicol, Nava Naroda and New Ranip.
Flats, apartments, serviced apartments, bungalows, penthouses and township properties are cropping up all over to meet the demand. In the past, residential development in was predominantly in the individual bungalow segment, and even today new bungalow schemes can be found on the outskirts of Ahmedabad city, especially along the Sardar Patel Ring Road. However, the scarcity of land and expensive real estate prices in the city have brought in the trend of apartment houses in form of high-rise towers in the city.
The prime residential areas in the city are Shahibaug (in the northern part of the city), Satellite, Bodakdev, Vastrapur, Prahladnagar, Thaltej (in the western parts of the city), Maninagar and areas around Kankaria and Chandola Lake in the southern eastern parts of the city.
The growth corridors for real estate development are the Sarkhej-Gandhinagar Road, Sardar Patel Ring Road, Maninagar and on the north side of the Inner 132 ft Ring Road in areas like Nirnaynagar and Ranip. S-G Road and Sardar Patel Ring Road in particular have witnessed a lot of residential bungalow and farm house developments in the recent years.
There will be a consistent 10-15 per cent growth in property rates across all sectors in Ahmedabad. The exact rate in certain locations will depend on the incidence of market drivers there.
Apart from Ahmedabad, Surat and Vadodara also rank high in the state’s real estate sweepstakes. As Gujarat’s second largest city, Surat is all set to become an international diamond trading hub. It is located on the Golden Quadrilateral highway and is well connected to Mumbai and Delhi.
These are major market drivers. Vesu, Piplod, Pal, Adajan and Varachha Road are the traditional residential destinations, and suburban locations like Bamroli, Khajod, Palsana and Puna Kumbharia Road are coming up.
Vadodara is Gujarat’s third-largest city and another preferred emerging investment destination. The prime residential areas are Alkapuri, Race Course Road, Old Padra Road, Jetalpur, Akota and Fatehganj.
The author is Associate Director, Strategic Consulting, JLL India