Ahmedabad and Gandhinagar have the necessary infrastructure and an affordable price range. As a result, numerous builders from other states as well are now considering Ahmedabad as a potential market to establish their presence. Sharing his views on the robust infrastructure development of the state, Ravin Bhojani, Senior Director – Advisory & Transaction Services, CBRE states, “The expanding central business district of the twin cities of Ahmedabad and Gandhinagar is the Gift City that is attracting BFSI and NBFCs, while the infrastructure development includes the Mumbai-Ahmedabad High-Speed Rail and Ahmedabad Metro Rail. Furthermore, future projects like Gift City Phase 2 and 3 that will promote walk-to-work culture and Dholera's new airport project that will handle 50 million passengers annually, signal tremendous opportunities for the real estate.”
Responding on the specific factors that have contributed to the remarkable growth and transformation of Ahmedabad, and Gandhinagar in recent years, Deep Vadodaria, CEO, Nila Spaces Limited, says, “I believe that infrastructure remains a paramount concern for individuals, regardless of whether they are associated with commercial or residential sectors. Over the past ten to fifteen years, Ahmedabad has displayed significant progress in this domain, surpassing other regions across the nation. This success is particularly evident in specialized areas such as gift city, where infrastructure is well-established and now is witnessing rapid development. This unique scenario presents numerous advantages and consequently has generated increased traction in sales due to heightened demand. The current hype has led to robust sales figures backed by our meticulous sales strategy that involves selling units only to those backed by home loans. This approach ensures that the investments made are genuine rather than speculative.”
Answering the question regarding specific areas or neighbourhoods within the metropolitan area that are witnessing remarkable growth and demand in the real estate market, Kamal Singal, Managing Director & CEO, Arvind SmartSpaces Limited, states “Ahmedabad has experienced significant growth in real estate, with the past 20 years being its golden era. The city's transformation has been extensive, with improved infrastructure and efforts to attract new businesses by successive administrations being key factors. Innovations like GIFT city are entering unexplored areas, generating new demand, and altering the client mix. Real estate development has been thriving in both the Northern and Southern parts of Ahmedabad, while the Western region remains influential. Important developments are also happening elsewhere, such as a recent large transaction in the Eastern region involving a prominent player. Standalone demand hotspots exist throughout the city, particularly in the Southwest and Northwest areas which perform the best. The western side is home to widespread weekend homes, whereas affordable housing exists more towards the east.”
Regarding the potential for investment growth in the city over the next five years, Nirav Kothary, Director, Godwitt Construction Pvt Ltd., elaborates “In the past 20 years, Ahmedabad has experienced a significant metamorphosis. It was once mainly known for manufacturing industries like pharmaceuticals and engineering, but over the last decade or so, there has been a considerable shift towards service sectors such as BFSI and IT. For a city to thrive, it must excel in both services and manufacturing. Ahmedabad and Gandhinagar are transitioning from a manufacturing population base to a more diverse population, drawn to the lifestyle and facilities. Service-based industries are expanding, necessitating infrastructure investments in areas like Gandhinagar and GIFT City. Industrial corridors like Sanand, Changodar support specific sectors, with real estate investment patterns expected to vary. Affordable housing solutions near these industrial areas will be crucial for incoming workers.”
Nilam Doshi, Director, Civic Organisers LLP, Hon. Secretary Credai Gujarat believes the cities of Ahmedabad and Gandhinagar have great potential. He concurred with Kamal Singal that they should be promoted as one rather than two cities. “Today, sustainability is a top priority for developers and government too is prioritizing eco-friendly practices in building and construction. We have a lot of hope from Smart city initiative of the government of Gujarat and would like to see technology enabled infrastructure for the citizens.”
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Kamal Singal shares, “Integrated Township living is thriving across cities such as Mumbai, Pune, and Bangalore. In terms of urban development patterns, India seems to be following global trends with distinct central business districts surrounded by high-rise buildings, followed by suburban areas featuring townhouses, villas, and recreational facilities such as golf courses. Consequently, the demand for these properties is rapidly escalating.”
Nilam Doshi praised the town planning mechanism of Gujarat. "It broadly does not gets influenced by vested interests. And that's why the cities of Ahmedabad and Gandhinagar are taking the kind of shape that they are taking.”
Today, Smart townships are gaining traction in residential sales and as per Deep Vadodaria GIFT City offers superior infrastructure and awaits further development, unlike other areas in India that struggle with development-driven growth and limited support. “GIFT city is experiencing an influx of people from various parts of the country, leading to increased diversity in the community. This diversity is influencing the development of infrastructure and attracting buyers to other parts of Gujarat as well.”
Concurring with the notion that GIFT is poised to become the primary investment center for commercial real estate, Nirav Kothary states, “The urban expansion pattern from the 1980s can be seen, starting with Ashram Road as the trade center, shifting to CG Road in the 1990s, and later to SG Highway. This suggests that each decade's infrastructure improvement and growth trend have shifted attention toward the ring road. Thus, real estate investment along the ring road seems like a wise choice. Although current obstacles such as direct traffic access exist, it's expected that these problems will be addressed, resulting in an access-controlled ring road. Consequently, commercial properties located along the ring road are primed for success. Additionally, emerging areas like Sanand is witnessing substantial industrial investments. Such industrial regions need auxiliary offices for insurance firms, banks, and transportation companies, which currently lack designated spaces.”
Addressing the built-to-sell nature of Ahmedabad's commercial real estate market is essential. According to Ravin Bhojani, in contrast to cities like Pune, Bangalore, or Chennai, it isn't tailored for build-to-lease deals in Gujarat. "Currently, obtaining 25,000 square feet of rented space requires negotiating with several small office space owners – a challenging endeavor for potential tenants. Developers must consider shifting from selling to leasing office spaces before offering them as investment properties. This change would enable single individuals or entities willing to share fractional ownership in buildings. Hence, investigating innovative commercial real estate development models can better suit flexible transaction options such as build-to-sell and build-to-lease.”
Though historically known for textiles and pharmaceuticals, the automotive industry is now emerging in Ahmedabad. Ahmedabad's premium market segment between SG and SP Ring Road has exhibited surprising growth. Kamal Singal
Ahmedabad and Gandhinagar stand alongside other prospering metros like Pune, Bangalore, and Chennai. Urban development is revitalizing central areas with projects like riverfront development and creating vibrant residential neighbourhoods supported by infrastructure investments. Nirav Kothary
It is important to acknowledge the efforts of large developers in constructing exemplary townships that require years of unwavering commitment towards establishing robust infrastructure. Once these townships begin to resemble genuine communities, true traction will arise from their existence. Deep Vadodaria
Today in city areas we are seeing emergence of high rise residential towers and as we go towards suburbs, row houses, plotted developments and townships are coming up in a big way. People now have a choice as per their lifestyle to choose from variety of projects that are being enhanced with better connectivity infrastructure of the state. Nilam Doshi
The developers of other metro cities are amazed with the kind of price factors that have come into play in Ahmedabad and Gandhinagar market as well as the infrastructure of residential and the price range that it has. They are now thinking about Ahmedabad as a market to come in and set shop. Ravin Bhojani
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