Tag Archives: Ahmedabad Property market

Ahmedabad property magnet to neighbouring developers

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: Developers from Mumbai, Pune and many other parts of the country are finding Ahmedabad property market to be a happy hunting ground.

Ahmedabad, Gujarat Real Estate, Gujarat Jantri,india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India PropertyReal estate is predominantly a micro market driven business and even the largest of the developers are often grounded in their home turf. Most of the realty brands have evolved in their own given geographical locations first before they branched out to other locations for expansion. Such expansions have also been more of metro centric.

There are very few case studies where the developers have flocked out to cities on sheer promise without registering their presence in the four metro cities. However, such migration to magnet territory is today quite visible in Gujarat where the developers from other states are increasingly flocking, most notably in the city of Ahmedabad.

Real estate developers from Mumbai and even Delhi-NCR are increasingly looking for greener pastures in and around the city of Ahmedabad. Whether it is a realty giant like Hiranandani or Ajmera or an emerging player like Grih Pravesh Buildteck, they are all gaining ground in Ahmedabad property market today. While expat influence is a known reality of Indian property market with expats emerging as a key home buyer, Ahmedabad is today witness to another set of expat influence – that of developers.

The developers have their own reasons as well. Some find the land prices attractive at this level, while the others find the approval mechanism conducive; Some are driven by the Gujarat growth story, others are goaded by the political reasons. But almost all these developers whose roads lead to Ahmedabad maintain that the overall eco system in the State is much better than other parts of the country.

Niranjan Hiranandani, Chairman, Hiranandani Group says the developers are bullish about Gujarat property market with arrays of infrastructural projects in the pipeline. Projects like Delhi Mumbai Industrial corridor (DMIC), bullet trains, metro rails, setting up of manufacturing SEZs, Dholera SIR, GIFT City, Port development, Smart Cities like Surat will boom the growth prospects in State of Gujarat. All these opportunity makes Gujarat State safest and bullish market for investors.

“State Government of Gujarat has ensured regular supply of basic amenities required by industries to set up their plants and other establishments.  State Government furnishes with continual power & water supply, better connecting roads, great infrastructure, set up strong telecom & fiber optical networks magnetizes corporate to draw their projects in the region to augment the project viability,” says Hiranandani.

Extremely bullish on his choice of future location, Abhay Kumar, CMD of Grih Pravesh Buildteck believes Dholera will lead the pack and the corridor from Dholera to Ahmedabad and Dholera to Bhavnagar area would see the maximum investment. These corridors look best for realty development because there is going to be most infrastructure support by government as it has got good connectivity and trade potential.

“Numerous developers are showing interest in Gujarat basically due to low cost availability of land and ease of doing business. By nature Gujaratis are law abiding and peace loving people and they have an attitude of non interference which makes this State a unique proposition for investment. Over and above Prime minister’s interest to develop this State as the best example for attracting investment; this has generated lots of interest among developers to move to Gujarat for launching their projects,” says Abhay.

Neeraj Tomar, Head – Ahmedabad, JLL India agrees that a large numbers of developers are looking to invest in the Gujarat market and are eyeing categories like industrial parks and commercial office projects. This market is still not perceived as expensive. The government is also acting as a catalyst and is providing all support in terms of developing the requisite infrastructure.

“The slowdown era vis-à-vis the Indian economy is diminishing slowly and the winds of change are in the air. With these changed sentiments all across the country, Gujarat will also have to carve out for its share of investments over the long term. The current scenario for Gujarat indicates that it has an advantage, but the challenge will be sustaining it over an extended period of time. Investors are always on the lookout for good investments, irrespective of physical boundaries. The principal fundamentals for attracting investments are fair valuations, expected returns on investments and risk management. Given the current scenario, Gujarat is figuring well on all these parameters,” says Tomar.

Gujarat can become an example for other States on how government can create room for investment. Analysts point out that to attract investment there is requirement of CCL- Corruption control, Clearances by government and Law & order and Gujarat is proving to be leading the pack in these benefits.

The developers who have forayed into the City are conscious of the fact that Ahmedabad’s real estate market is booming because of the huge growth of its industrial sector and overall high rate of development, fuelling both the commercial and residential properties. This commercial capital of Gujarat is rich in textile, pharmaceutical and chemical industries. Apart from being a well-established education centre 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 destination.

Flats, apartments, serviced apartments, bungalows, penthouses and township properties are cropping up all over and the residential development in Ahmedabad is no more only in the form of individual bungalows. Though even today new bungalow schemes can be found on the outskirts of Ahmedabad city, especially along the Sardar Patel Ring Road coming under zones R2 and R3. 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 that many of the expat developers have spotted in Ahmedabad 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 SG Road (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.

Though locations in and around Ahmedabad are top picks for the expat developers in the State but 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 magnets for the developers who are flocking to the State. 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 is another preferred emerging investment destination for the developers trying to make inroads into the State. The prime residential areas are Alkapuri, Race Course Road, Old Padra Road, Jetalpur, Akota and Fatehganj.

Gujarat is no doubt a land of opportunities for these developers as it is strategically located on the west coast of India. Gujarat is well connected to the major cities of the world by air and sea routes. Gujarat, with a coastline of 1600 km is well connected to all the major port-based trade routes, such as USA, Canada, Europe, Australia, China, Japan, Korea Gulf & African countries and other major trade cities of the world by air route.

The State acts as a Gateway to the rich northern and central hinterland of India; connecting them via road, rail and air thereby providing immense trading opportunities.

Godrej Garden City gets A Rating

Posted on by Track2Realty

Track2Realty Investment Magnet Report 2015 picks up 100 best housing projects across India.

Godrej Garden City, Ahmedabad property market, Indian real estate news, Indian property news, NRI investment, Best project in city, Track2Realty Investment Magnet ReportLocation: SG Highway, Ahmedabad

Project type: 1, 2, 3 & 3.5 BHK Apartments, Villas & Row Houses

Price: Rs. 18.3 Lakh-1.2 Crore

Project execution lifecycle: July 2005-May 2017

Large townships are challenging within the municipal limits of major cities and yet there are certain projects that evoke the confidence level of the city planners, developers, investors and the homebuyers.

Godrej Garden City in Ahmedabad is one such case study where the self-sufficient township has abundant greenery and clean fresh air, yet conveniently located within Ahmedabad Municipal Corporation limits.

Currently, in its fifth phase of development the township spread over 200 acres of land proposes to house over 13000 with 40 acres of scenic landscaping & open areas.

The master plan has been created by Skidmore Owings & Merrill (SOM). It is a globally acclaimed design firm based in USA that has designed projects like Burj Dubai & upcoming One World Trade Center in New York.

Every facility from healthcare to banks, civic amenities and public utilities is being provided along with large open spaces and several recreational facilities. Children can have education at the world-class schools that are close to all the recreational facilities, all safely within the township.

Conveniently placed in Jagatpur, in the North-West region of Ahmedabad, Godrej Garden City is at a walking distance from landmarks like NIRMA University and BSNL Training Centre and is located just off SG Highway, which is one of Ahmedabad’s fastest growing corridors. It has easy connectivity with all parts of the city, including the airport and railway station.

Track2Realty Rating: A

Location & Aspiration: 8/10

Physical Infrastructure: 8/10

Social Infrastructure: 7/10

Appreciation Potential: 8/10

Competitive Advantage: 8/10

Rental Potential: 7/10

Launch2Sales Ratio: 6/10

Construction Quality/Timelines: 7/10

Livability Index: 7/10

ROI Cycle: 6/10

Ahmedabad-Vadodara Expressway a cross connection of vibrant economy

Posted on by Track2Realty

Ahmedabad Vadodara Expressway, Gujarat Urban Development, Ahmedabad Property market, Indian real estate news, Indian realty news, India property market, Track2realty, Track2Media ResearchTrack2Realty Exclusive: To say that expressways are lifeline of urban centres would be like stating the obvious. The expressways across the country have been a connecting point of the main city with the periphery locations, thus ensuring that satellite cities are sustainable for the working class who can otherwise not afford to buy a house in the main city. In the process, expressways have been catalyst to the vibrant economy of the region as well.

In plain real estate terms, these satellite towns have proved to be the only affordable destination for most of the urban cities. Some of the Small and Medium Enterprises (SMEs) have also flourished across the expressway. However, the story of one expressway in Gujarat goes beyond just serving as the lifeline of real estate and economy; it is a case study of two vibrant economies connecting through.

Ahmedabad Vadodara Expressway is not like one major city connecting to the other satellite one. It is, in fact, cross connection of the vibrant economy of the two cities where the smooth traffic has come as a blessing for the business of the region. Ahmedabad and Vadodara are two of the main cities for vibrant economic activities. As far as real estate and property market is concerned, these two cities attract nearly two thirds of the entire market size of the state.

Hence, along the Ahmedabad Vadodara Expressway the real estate market has seen an upward movement and it is not just the Small and Medium Enterprises (SMEs) that have flourished along the stretch of this highway. As a matter of fact, the big ticket corporate presence in the region indicates the expressway has been a catalyst to the growth of the region. It is estimated that most of the big ticket investments in these two markets, of late, has been along the stretch of the expressway.

Analysts hence make it a point that that Ahmedabad Vadodara Expressway is not just strategically important for the Gujarat real estate market, rather no other expressway is as much strategically positioned as this one.  

Manan Choksi, the Regional Director RE/MAX MGM agrees that the strategic importance of Ahmedabad Vadodara Expressway for Gujarat property market can not be denied. According to him, Ahmedabad Vadodara expressway has reduced the travel time from Ahmedabad to Mumbai and all the main cities between. The movement of people and goods have facilitated trade like never before. People can commute from Nadiad/Anand/Vadodara to Ahmedabad and vice versa. This has led to increase in the floating population in Ahmedabad. A lot of warehousing options have come up in the either ends of this expressway.

“At present the opportunities seem limited. However, if proper planning is done it can be a gold mine. For example, if we have entertainment options in middle of the expressway it would be a big draw for crowd in all nearby towns. It is one of the most industrialised segments in the country and I think that opportunities do exist. However, people fail to recognise them. It is known as the golden corridor. SME sector can blossom only when there is a healthy eco system. The expressway at present does not provide the much needed incubation. Services are more likely to develop along the road,” says Choksi.

Market watchers in this part of the world suggest that more efforts should be taken for the fast track growth of property market along Ahmedabad Vadodara Expressway. To have development along the expressway there should be more exits from the expressway. At present once one enters the expressway only exit one can take is in Nadiad and Anand before Vadodara. More exits will help in developing other towns also. Apart from the exit, there should be more flyovers. This will ensure that one can cross the expressway instead of going around the entire road.

Some of the other suggestions include different pricing for peak hours and off peak hours, as the expressway is mostly not used by trucks at present and they still use the old national highway. This results in underutilisation of the infrastructure. So, may be during the off peak hours, the toll should be reduced to say half that will drive more traffic. Emergency services should be placed at frequent intervals to make people feel safe in travelling the expressway. Expressway should be extended upto Mumbai.

Sachin Nigam, President and Business Head, CRISIL Real Estate Ratings says Ahmedabad and Vadodara are the key economic centers of Gujarat. A hassle free connectivity between these two cities, through the expressway, has gone a long way in improving the trade and commerce in the region. Both the starting and end nodes of expressway have already seen large scale economic development in the form of industrial development and resultant impact of real estate development.

“The expressway is expected to play a significant role by facilitating smooth transport connectivity within the Delhi Mumbai Industrial corridor and hence would be critical for overall economic development of the stretch.  Property market will be impacted by the overall economic activity both direct and indirect being supported by the expressway,” says Nigam.

Experts suggest the property market growth along any such stretch could be driven by creation of economic cluster and pockets further aided by smooth entry and exit points. It would be critical to identify placement of such clusters and the implementation should be done in a systematic and phased manner, without hampering the smooth functioning of expressway.

Probably the best example of the success of this expressway is the fact that the property prices have gone up be around 50 per cent along the stretch in the last three years. This appreciation at a time when the market sentiments are low and transactions pretty slow indicates that the peak of the property cycle in the next few months will make Ahmedabad Vadodara Expressway as one of the key magnets of investment and the region will lead the property rally to a new high. Many of the developers from Gujarat and even neighbouring markets of Mumbai and Pune are already exploring the feasibility of land acquisition in the region. In a collective sense of growth drivers, this shows the way forward for a new investment destination.