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Ahmedabad realty sector promises good returns


Ahmedabad witnessed a steady growth in the realty sector throughout the year 2012. The largest city of Gujarat has emerged from a trading destination to a realty hub. According to a property consultant, Prakash Jain of Jain Associates, “The residential sector experienced healthy demand and supply across the city. Both resale and new property segments registered a fair amount of transactions and an average value appreciation of 10-12 per cent during the past 8-10 months.” Developing retail and industrial sector in the city is the key economic driver of the realty market.

“The favourable investment policies and intelligent development governance has been able to capture foreign investors and other HNI’s in the city and that has resulted in unprecedented returns on the real estate front,” says Rahul Verma property advisor at Tata Housing. Ahmedabad residential sector witnessed a significant escalation of more than 50 per cent during the past couple of years. Areas seeing maximum demand and property values appreciation are South Bopal, Bodakdev, Vastrapur, Nicol and Nava Naroda, he added.

According to the latest JLL Report, “Approximately 16 million sq ft of built-up residential space has been built in Ahmedabad over the last four years and another 23 million sq ft is currently under construction, and a further 30 million is proposed in various parts of the city.”

The upcoming new residential projects in the city as well as the emerging corridors such as Delhi-Mumbai Industrial Corridor (DMIC), SG Highway and Sanand are fetching maximum attention of buyers and investors. These projects being low priced are seeing investments not only from the main city but from across the western region.

The capital values of apartments coming up in the city varies from Rs 4,000-6,000 per sq ft while the apartments coming up on the outskirts are available in the price range of Rs 2,000-3,500 per sq ft. Further, proposed infrastructure projects such as constructing high-speed rail connectivity between Ahmedabad, Mumbai and Pune along with the ongoing Vadodara-Mumbai Expressway will enhance the connectivity manifold. Ahmedabad realty graph shows an upward trend and this is expected to continue in the near future as well.