By Accommodation Times News Services
Ahmedabad, straddling the river Sabarmati, is the largest city of Gujarat. Also known as Amdavad, it is now the administrative center and seventh largest agglomeration in India with a population of approximately 5.6 mn. located at approximately 32 Kms. The city is divided by the Sabarmati river into two physically distinct regions viz. Eastern and Western Ahmedabad. The eastern bank of the river houses the old city with packed bazaars, the main railway station and numerous temples. The western region is dotted with educational institutions, well planned residential areas and shopping malls with multiplexes around Ashram road, C. G. Road and S. G. Highway.
Ahmedabad is now growing on the real estate map, slowly and steadily. Ahmedabad is among the top 10 cities to reside, invest and earn and this is the reason investors and NRIs are attracting towards the city. The city is among India’s fastest-growing cities for years and has excellent infrastructure facilities, which is attracting many real estate projects there. It has many developing and premium areas and large number of high-income individuals.
Residential development happing in the city
The development of residential townships, malls, office spaces and flyovers are some of the growth stimulators changing the cityscape of Ahmedabad. Maximum activity in terms of planned residential, commercial and retail development can be witnessed in this western micro market of Ahmedabad. The areas like Ashram Road, C. G. Road, Sabarmati, CTM, Ghodasar, Naroda, Shahibaug, Satellite and Thaltej have huge potential for residential developments. Residential property appreciation in the city has been to the tune of 50 per cent over the last three years.
Developed areas of the city are:
- Shahibaug located in the eastern corridor, is one of the most developed and planned areas of Ahmedabad witnessing an appreciation of 28% (Mar’11–Feb’12). People from upper and upper middle class prefer to reside in this pocket.
- Residential areas in North Ahmedabad like New Wadaj and Sabarmati witnessed an appreciation of approximately 22% (Sept’10–Oct’11) in capital values due to the upcoming residential supply and infrastructure developments being undertaken along Sabarmati. The Ahmedabad Muncipal Corporation (AMC) has initiated development of the Sabarmati riverfront and with this objective, a separate company named Sabarmati River Front Development Corporation Limited (SRFDCL) was formed in 1997.
- Areas like Chandkheda and Motera of North Ahmedabad showed appreciation in land prices due to close proximity to the developing IT and commercial corridor of Gandhinagar.
- South Ahmedabad replicates Central Ahmedabad as here too, non availability of land parcels has lead to the appreciation of land values. Apart from the easy accessibility to Ahmedabad–Baroda Expressway has given a boost to real estate prices in this region.
Affordable Housing- Affordable housing is still the preferred medium and huge demand for affordable houses was witnessed in Ahmedabad. To boost the supply state government has initiated new affordable housing policy. As per the policy the state government intends to make available affordable houses in the price range of Rs 3 lakh to Rs 25 lakh for people with an annual income ranging between Rs 1 lakh and Rs 5 lakh. While people below Rs 1 lakh have been identified as part of EWS, those in the Rs 1-2.5 lakh range come under LIG and Rs 2.5-5 lakh come under MIG. The affordable housing segment in Ahmedabad has seen organized real estate players like Tata Housing, Adani Township & Real Estate and Arvind Real Estate.
Luxurious developments– Luxury homes are witnessing good traction and many upcoming projects launched on a lavish scale. There is a huge inflow of money from all over the country and also from abroad. The NRI investors, who are investing here, prefer a lavish lifestyle and they go for luxurious housing schemes. Due to this reason also the demand and prices of luxury houses have gone up. Luxury apartments and Villas’ constructions can be witnessed on large scale.
Real estate investment in the city
In Ahmedabad it is surprising to note that the people across business lines also serve as real estate agents in order to encase on the prevailing real estate scenario. These brokers are a close knit community. It was also observed that there is no lock–in period for the investor and he could sell the apartment at any point of time. Ahmedabad and Vadodara are among the most-preferred destinations for real estate investing in Gujarat. It is largely due to the SP Ring Road and Bus Rapid Transit System (BRTS) projects that the peripheral areas such as Motera, Chandkheda and Koteshwar are gaining attention from investors and home buyers alike. These distant areas have become accessible due to these infrastructure projects, which connect them with major parts of the city.
As per the global property consultant Cushman and Wakefield (C&W) Ahmedabad is the highest among the top 10 emerging business destinations. Ahmedabad has attracted an investment of Rs 71,270crore since 2010, which was in the automobile and auto-components sector, followed by telecom and real estate & infrastructure. Ahmedabad has attracted nearly 39 per cent of the total investments announced since 2010. Though the city is flourishing with luxurious projects the property prices are affordable compared to other major cities like Mumbai, Bangalore and Delhi. Hence, investors and NRIs are looking at Ahmedabad for investing in properties and as it is the rapidly developing into realty city they can presume good returns on investment in near future, resulting in increase in NRI investment in the city.
Investors in Ahmedabad
The city is not only an investment opportunity city, but also an investor friendly city. It is among the few cities of India which not only attract investment, but have ample of investors. Residential real estate of Ahmedabad is dominated by private players and the market is also heavily driven by an active investor base, with most of the participants plowing capital market profits into the real estate markets. This is flourishing the real estate sector of the city. Ahmedabad is the city of Businessmen, Traders and Merchants who makes the city resident of millionaires. Ahmedabad has 5 millionaires out of 100 top millionaires of India listed by Forbes, the five names includes.
1. Gautam Adani, Adani Group
2. Sudhir & Samir Mehta, Torrent Group
3. Pankaj Patel, Cadila Health Care
4. Karsanbhai Patel, Nirma
5. Bhadresh Shah, AIA Engineering
As per Income Tax statistic Ahmedabad estimate 4,000 ‘crorepatis’. They fall in the category of persons who declare their taxable income as more than Rs one crore. This indicates that wealth is concentrated in this entrepreneurial city. According to the world ultra wealth report 2013 by Wealth-X, a global wealth intelligence and prospecting company, a city-wise analysis shows that more than 90 per cent of India’s Ultra High Net Worth (UHNW) population live in top 10 cities, which includes Ahmedabad. This makes Ahmedabad the city of investors.