Prices of property in Ahmedabad have been on the uptick since the beginning of this year, mainly because of the expectations that the Modi led National Democratic Alliance (NDA) would kick start the economy. According to the last correlated data by the National Housing Bank’s Residex, in the period January to March 2014, the prices of property in Ahmedabad went up by 6.1%; in comparison Chennai registered an increase of 5.8% and Kolkata went up by 5.1%.
Some time back, Forbes named Ahmedabad as one of three fastest growing cities in the world. Experts say that the city’s real estate, both commercial and residential, has been on the growth trajectory because of the growth witnessed in its industrial sector. Ahmedabad, the commercial capital and largest city in Gujarat, is also the centre for industries such as pharmaceutical, chemical and textile. The city is also home to institutes of excellence like the Indian Institute of Management, the National Institute of Design and the Centre of Environment Planning and Technology. Of late, Information Technology and its enabled services (IT and ITes) have become major employers.
Located on the banks of the River Sabarmati, Ahmedabad is 32 km from Gandhinagar, the state capital. The city is divided into the western and the eastern regions by the Sabarmati. The eastern side is the old city with the main railway station and the General Post Office. On the western side are the educational institutions, shopping malls and the better planned residential areas. The new business districts are also located on the western side of the Sabarmati. There has been a spurt of development activity in the city in the past few years and more recently, many builders are developing townships on the outskirts of the city.
According to reports, the prices of property in Ahmedabad is likely to go up further as the city planners are proposing a mass transit rail system connecting Ahmedabad with Gandhinagar. The feasibility study has already been done and a INR 200 crore company called the Metrolink Express for Gandhinagar and Ahmedabad (MEGA) has been set up.
The Ahmedabad Urban Development Authority (AUDA) has recently approved plans to establish a central business district on Ashram Road, to upgrade the Sabarmati river front and to set up an affordable housing precinct.
Real estate development in Ahmedabad is going vertical with more and more apartment complexes springing up all over the city. The main reason for this is that the cost of land has escalated over the past few years. However, individual bungalows are still popular but are mainly coming up on Sardar Patel Road on the outskirts of the city.
The main residential areas are Shanibaug in the north, Prahladnagar, Vastra Pur, Bodakdev, Thaltej and Satellite in the west and Maninagar, Kankaria and Chandola Lake in the south eastern side of the city. A lot of growth has been witnessed on Sarkhej –Gandhinagar (SG) Road, Sardar Patel Ring Road and the Inner Ring Road. A large number of farmhouses and bungalows have come up on Sardar Patel Road and SG Road.
Prices for apartments in Ahmedabad are bit of a mixed bag with prices going down in some areas while others have witnessed a sharp increase. During the period April to June this year, Gurukal witnessed an increase of almost 14% with prices ranging from INR 4300 to INR 7000 per sq ft. The other area which saw a surge in prices by 14% was Vastra Pur with prices ranging from INR 4700 to INR 6200 per sq ft.
One area which is becoming popular with investors is Prahlad Nagar. The first factor is that the connectivity to this residential area is good. Secondly, most investors into this locality find that there is a lot of choice as there are a number of multi storied apartment complexes to suit all budget types. The return on investment is also quite good in this area, one realtor said.
Nina Varghese for IndiaProperty.com