With realty prices for both residential and commercial properties rising by 20-30 per cent in Ahmedabad, the average capital value of the city’s western central micro market has shot up to Rs 3,000-5,500, per sq ft, up from Rs 2,500-5,500 per sq ft.
According to a report by Jones Lang LaSalle India (JLL), a real estate consulting firm, the western central micro market has the highest capital values in realty deals in Ahmedabad, as against western, northern and eastern suburbs. “Capital values in Western Central are the highest among all the city’s micro-markets. Western Central, which encompasses the CBD and the new commercial development along S.G.Highway, is a major attraction for the city’s more affluent property buyers,” the report states.
Construction activity, as per JLL, is evident largely in residential projects, since this is currently the primary growth sector on the Ahmedabad property front. “Ahmedabad property rates for new schemes at various locations have shot up by as much as 20-30 per cent over the last six months. Residential projects are coming up fairly rapidly on the Western and Northern side of the city, with a fair amount of residential construction on the Eastern side, as well,” said Kripal Singh, manager - strategic consulting, JLL India.
To support and sustain this real estate growth trend, the Government has begun putting in a number of infrastructure enhancements in Ahmedabad. At a city level, the Bus Rapid Transit System (BRTS) is underway – by increasing intra-city mobility, which will put an additional fillip to residential property rates. For instance, the prices of residential properties near Chandkheda are already on the upswing because the BRTS route is expected to extend up to this location.
As per the report, while the western central micro market that includes locations like C.G.Road, Ashram Road, Prahladnagar, Bodakdev, Vejalpur, Vasna, Satellite, Thaltej, Sola and Science City Road has witnessed average capital values at around Rs 3,000-5,500 per sq ft, western suburbs like Bopal, Ghuma, Shela, Shilaj, and Sarkhej-Sanand Road have witnessed it around Rs 2,500-3,500 per sq ft.
“Another significant economic activity initiated by Government between Gandhinagar and Ahmedabad is the GIFT City project. GIFT City, located at Shahpur village, is approximately 12 km from the International Airport and 8 km from Gandhinagar. GIFT will serve as a global BPO and IT hub for financial services, and also as a R&D nexus and financial centre for a selection of product markets. This project is estimated to generate 1 million direct and indirect jobs once it is completed. Construction on Phase I of the project is already underway, with a number of residential schemes already sprouting up in the vicinity,” the report further stated.