Growing Prospect for Investing in Ahmedabad Real Estate

Ahmedabad is better known as the capital city of the state of Gujarat. It is the seventh largest metropolis of India. A city more popular for its industrial background, is now growing on the real estate map, slowly and steadily.

Ahmedabad is among the top 10 cities to reside, invest and earn, according to a study ‘The city skyline of India 2006′ conducted by Indicus Analytics. Surat and Ahmedabad are also ranked in the top ten ‘alpha cities’ also classified by the study as the elite club of 10.

Ahmedabad enjoys strategic location advantage of proximity to Mumbai, commercial capital of the country. Western, Middle East and African markets are also accessible. Going by the ever growing construction of skyscrapers, shopping malls and multiplexes, the city is moving on fast. Investors and NRI Gujaratis have been attracted due to its mega city status and the strides it has made in terms of healthcare, cuisines and malls.

Retail and information technology are the upcoming sectors in the state. IT parks are being set up. Projects in the auto parts industry are being planned for the city. An arterial road network of 155 kms has been identified for a Rs 950 crore Bus Rapid Transit System (BRTS) in Ahmedabad.

S.G Highway and Ambawadi are the places where IT companies are coming up with their campuses. Prime residential areas are Sabarmati, Vastrauram, Satellite, Ambavadi and Chandkhera. Prime Commercial areas are C.G road, S.G highway Satellite, Vastrapur. Coming of SEZ will further boost real estate residential and commercial values because of increase in number of floating population. Current Ahmedabad real estate market is less expensive as compared to the neighboring localities and this is going to be a crucial factor – as more number of International players will establish their campus here.

Sardar Vallabhbhai Patel International Airport serves both as a domestic and an international airport for the city and neighboring states. It operates direct flights to all other major cities of India. The National Highway 8 which connects Delhi to Mumbai passes though Ahmedabad. The National Highways Authority of India (NHAI) has signed two separate agreements with IDAA consortium and Larsen & Toubro (L&T) for upgrading the highway under a BOT (build, operate and transfer) scheme. The Metro Rail Project is being planned with private sector participation.

Current focus is on infrastructure by privatizing ports and building integrated townships. The government is encouraging in a big way, technology parks, education based townships, medical and healthcare townships, tourism-related townships, Logistics Park and residential townships.

Skilled labour, availability of land in market, quality real estate, low operational costs, good connectivity, supportive government policies and entrepreneurial culture are the city’s strengths. There has been a tremendous demand for low-rise buildings, bungalows and row-houses, say local realty agents. However, social infrastructure has still not matched the desired pace. Hence, self-contained and integrated projects will have better prospects.

George Gonigal

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