GIFT City attracts 4,103 residential units as 2-year-long sunset clause ends

“Initially, the houses were meant only for those working at GIFT City. Then, regulation regarding the ownership was relaxed allowing outsiders to own houses, but occupants have to be those working at GIFT City. That was relaxed allowing anyone to own and occupy houses in the project and a cap of such houses was set at 5,000 housing units,” Ray added.

Over the past couple of years, several stakeholders and partners have lamented the absence of “life” after work hours at GIFT City.

Though the subscription, as far as absolute numbers, might have fallen short of the targeted number of 5,000 housing units, officials point out that the total area intended for promoting housing initially at GIFT City has been met. These homes will cost at least 30-40 per cent more than those outside of the smart city area.

Among the 10 under construction or proposed housing projects that took advantage of the “sunset clause”, five are located in the non-processing area of SEZ (Special Economic Zone) at GIFT City where there are no exemptions in the local laws unlike the processing area.

The developers include Savvy ATS Realty, Shivalik LLP, Shilp Infraspaces LLP, Bakeri Residences LLP and Bhandari and Sangath Builders LLP. Similarly, the housing projects in Domestic Tariff Area (DTA) belong to Sobha Ltd, Sangath IPL, Nila Spaces, Kaavyaratna LLP and State Bank of India. The SBI housing project will be meant for its own employees. Barring Bengaluru-based Sobha Ltd and M/s Bhandari, all other residential developers are either based out of Ahmedabad or Gandhinagar.

The biggest housing project belongs to Bengaluru-based Sobha Ltd, which is building 742 housing units. These units are divided into two separate projects.

The Indian Express had reported that the Gujarat government, in a resolution passed on March 8, 2021, tweaked the rules allowing people not working at GIFT City to own and reside in a house built inside the campus. The rules were changed because there was a lack of interest among real-estate developers to adhere to the earlier restrictive clauses.

GIFT City started out with the walk-to-work concept where everyone who worked here would have to live here. However, with residential units still under construction, most of the employees live outside the campus, either in Gandhinagar or Ahmedabad, and commute to work on private vehicles. The first housing project comprising 330 units was executed by Janaadhar Pvt Ltd. They are currently occupied by the blue-collared employees in the smart city. Thereafter, Sobha Ltd and Gandhinagar-based Sangath IPL stepped in to build the homes.

The cost of a residential unit — from a 1-BHK studio apartment to 4-BHK or penthouse unit — can vary between Rs 70 lakh to more than Rs 4 crore. “The cost of a residential unit in the project is between Rs 5,500 and Rs 6,000 per square feet. This is about 30-40 per cent more than the cost of residential schemes outside the project in Gandhinagar and Ahmedabad,” said Jigar Mota, head of transactions, Cushman and Wakefield (C&W).

When asked if the 4,103 housing units would be enough to kick-start an “evening life” in GIFT City — where only 300 odd families currently live — Mota said, “It is no to suffice. But the residential schemes that will come up as part of the proposed GIFT City expansion is expected to not have any such restrictions and will help add to the social ecosystem that is already getting built in GIFT City.”