Ahmedabad witnessed real estate transactions worth around Rs 1,100 crore in the financial year that ended on March 31, 2010  Gujarat, a state in western India, aims big in constructing superb developments to set new standards in the global real estate industry. Positioned as a significant industrial destination in the map of India, the state offers a wealth of investment opportunities for investors. From Ambani to Tata to Birla, the business moguls of India are all ensuring their presence in the state. Soon after making the famous statement, “It is stupid if you are not in Gujarat,” Ratan Tata shifted his dream project ‘Nano’ into this state after pulling out from Bengal. Not only are the domestic biggies flocking into this western state, but many global majors are also making a beeline for Gujarat. Why Gujarat?
Having given such an introduction, the pertinent question would be why only Gujarat? It is true that the global property market is extremely competitive and Gujarat is only a state and an emerging player in this field. However, this western state is a special destination with its unique features and rich culture.
The state accounts for 20% of India’s industrial output and 22% of its exports, thereby contributing significantly to the national exchequer. Gujarat stands second in terms of per capital state GDP, next to Maharashtra. Besides, the per-capita GDP of this state is 3.2 times more than the average per-capita GDP of India. These encouraging figures well explain the prominence of Gujarat in the entire industrial scenario of India.
In addition, the state enjoys well-developed infrastructure facilities, investor-friendly policies, political stability, friendly people and healthy business environment supported by a proactive state government. The biennial Vibrant Gujarat Global Investors Summits (VGGIS) have already emerged popular. Besides, the state is blessed with the dynamic Chief Minister Narendra Modi,whohas been projected as the brand ambassador of rapid development and growth.
Furthermore, Gujarat’s huge coastline of around 1,600 km enables the state to promise massive business investment opportunities.
Booming real estate
Rapid industrialisation has helped the state’s real estate sector to grow by leaps and bounds. World-class infrastructure facilities, good road connectivity in particular, is a key factor that has attracted many real estate players to create sustainable developments and run a profitable business in Gujarat.
The state government is also emphasising to draw more overseas investors and has therefore framed favourable policies related to administrative procedures. Unlike other cities, plan sanction and non-agricultural land conversion take a minimum of 60 days time in Gujarat. Laws and bylaws are also good, enabling the developer to speed up project development. Investors going for the township policy can also earn some tax benefits.
Ahmedabad, Gandhinagar, Vadodara and Surat are the dominant property hubs in Gujarat and are very conducive for investment in this field. The demand for both residential and commercial properties has witnessed a phenomenal rise over the last few years. Slightly affected due to the global economic recession, many developers at present are taking up fresh projects in Gujarat.
In residential spaces, the state is experiencing wide-scale development of residential colonies, integrated townships, high-end apartments and luxury villas. Demand for residential apartments has shot up to 20%. Property prices have also gone up by 15%.
Mushrooming of shopping malls, surge in retail business, along with a thriving hospitality industry have driven the growth of the commercial real estate sector in Gujarat.
Go for Ahmedabad
With excellent prospects of growth, Ahmedabad is the current buzz in the property market of Gujarat. The reasons are many. Significant improvements in infrastructure and public transportation have made the city a sought-after destination for many developers and investors. The city witnessed real estate transactions worth around Rs 1,100 crore in the financial year that ended on March 31, 2010.
The Centre has recently announced to invest Rs 5,500 crore across seven mega cities in India, of which Ahmedabad is a major destination. Moreover, the Gujarat Institute of Housing and Estate Developers (GIHED) is also emphasising to promote Ahmedabad as an investment destination.
To add to this glory, the state recorded transactions worth Rs 95,000 per square yard in residential spaces recently.
With Gujarat becoming a home for increasing number of enterprises, it is not surprising that many find investment and business success in the state.
Pravin Bavadiya, founder and chairman of City Estate Management, an Ahmedabad-based reputed property firm. |
