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Infrastructure development can have a positive effect on property prices. For instance, residential property prices at Chandkheda, on the outskirts of Ahmedabad, are already on the upswing because the Bus Rapid Transit System (BRTS) route is expected to extend up to this location. Improved intra-city mobility will give an additional fillip to residential property rates.
Ahmedabad property rates for new schemes, at various locations, have shot up by as much as 20-30 per cent over the past 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.
To support and sustain this real estate growth trend, the state government has begun putting in a number of infrastructure enhancements in Ahmedabad.
Meanwhile, the Sabarmati Riverfront Development Project, at an advanced stage of completion - will add to the quality of living standards of home owners in the adjoining residential catchments by providing more open space and leisure activity outlets.
Another significant economic activity initiated by the 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 eight km from Gandhinagar. GIFT will serve as a global business processing outsourcing and information technology hub for financial services. For select product markets, it will also be an R&D hub and a financial centre for select product markets.
Once completed, this project is estimated to generate one million direct and indirect jobs. The construction of Phase I of the project is underway, with a number of residential schemes sprouting in the vicinity.
Capital values in Western Central are the highest among all the city's micro-markets. Western Central, which encompasses the central business district and the new commercial development along S G Highway, is a major attraction for the city's more affluent property buyers.
At a regional level, the Dholera SIR, a large industrial project in Ahmedabad district, is being planned by the government. This undertaking will do much to drive the city's real estate growth into a new direction.
In fact, the business sector and rapid industrialisation will continue to be significant growth drivers for the Ahmedabad property market. Thanks to a very conducive environment provided by the state government and the availability of skilled manpower, a number of companies have made an entry into Gujarat. Plus, the fact that Ahmedabad is the economic capital of state makes it a preferred location for the head offices and regional offices of such industries and companies.
The writer is CEO - Operations, Jones Lang LaSalle India
