IS GIFT CITY INDIA’S NEW INVESTMENT MAGNET?

Backed by strong government support, progressive regulatory frameworks, and world-class infrastructure, Gujarat International Finance Tec-City (GIFT City) strategically located between Ahmedabad and Gandhinagar was introduced as India’s International Financial Services Centre (IFSC), to become a global financial hub like Singapore, London, and New York

HOW DID GIFT CITY GAIN GLOBAL ATTENTION?
In 2023, following the collapse of Silicon Valley Bank, approximately $200 million was moved to GIFT City, highlighting its emergence emerging as a preferred destination for global and domestic investors. Currently, GIFT City is home to more than 19 banking units, 25 insurance companies, and numerous brokerage and financial service providers. These include prominent entities like Standard Chartered, Bank of America, National Stock Exchange (NSE), and JP Morgan, to name a few.

GIFT CITY’S DEVELOPMENT
As per Ravin Bhojani, Sr. Director & Head - A&T, Advisory & Transaction Services, CBRE, “Gujarat has long been a front-runner in driving economic growth. While it struggled to gain momentum in its early years, the past 24 to 36 months, especially the establishment of International Financial Services Centres Authority (IFSCA), has brought a surge in development and interest that few had anticipated.”

Nisarg Acharya, Head - Marketing, Commercial, PR, Business Development, Gujarat International Finance Tec-City Co. Ltd., added, “GIFT City was envisioned as one of the world’s premier business districts – an ambitious, futuristic project that introduced infrastructure concepts India hadn’t seen before, like automated waste systems, underground utility tunnels, and centralized cooling. Initially, these ideas were met with scepticism, but over the last decade, and especially after COVID, the narrative has shifted from “Is this possible in India?” to “What’s next?”.

The pandemic triggered a major shift in how companies operate; instead of expecting talent to relocate, firms began moving closer to talent, and with GIFT City offering world class infrastructure and access to a rich regional talent pool across Gujarat and neighbouring states, it’s now a preferred destination for both businesses and professionals.” On the residential segment, post-COVID, the dynamics in GIFT City have shifted significantly, with current occupancy roughly split 50-50 between commercial and residential use. Currently, GIFT City has over 5,000 residential units occupied, housing around 15,000-20,000 people and the population is expected to grow to about 100,000 in 2025.

According to S K Patel, Founder, Kavyaratana Group given the limited planning for residential development within the city and the projected workforce of one lakh by 2030, the demand for housing will far exceed supply, making it likely that a substantial portion of future residents will need to live outside GIFT City, keeping residential demand consistently high. “ Within GIFT City, future development may be limited, as no additional projects are likely to be approved and the government is expected to clear the GIFT City is divided into two distinct zones: the Domestic Tariff Area (DTA) and a non-processing Special Economic Zone (SEZ), making it one of the few SEZs in India with an International Financial Services Centre (IFSC) license. This structure, supported by the establishment of IFSCA, has made GIFT City a preferred location for offshore tech and f inancial firms aiming to reduce cross-border transaction costs while maintaining a global operating standard. White Zone soon. To meet the rising residential demand, new housing is expected to emerge along the Riverfront and in nearby areas now under GUDA’s jurisdiction, helping to manage the demand-supply gap.”

LIVING UPTO THE GRAND VISION

The Government of Gujarat has introduced an attractive policy framework for the IT/ITeS sector, recently enhanced by the launch of the GCC policy to align with the evolving needs of global capability centres. While GIFT City already offers a strong foundation with world-class infrastructure, quality of life, competitive cost of living, talent availability, and single-window clearance, the state led incentives, such as substantial CAPEX and OPEX benefits, PF reimbursements (100% for female and 75% for male employees), rental and electricity duty subsidies, and hiring support, serve as a powerful complement, making it even more compelling for companies to set up operations here.”

Shreyans Shah, CEO & Director, Savvy Group, added, “Before 2019, GIFT City faced several challenges— it wasn’t widely recognized, had limited visibility, and only a couple of infrastructure projects were operational, keeping it largely off the radar. However, with the establishment of the IFSC Authority in early 2020, which brought regulatory power comparable to SEBI or IRDA, and key developments like the entry of Bank of America, GIFT City has entered a new era marked by rising demand, growing workforce, and near-zero real estate inventory, with projections aiming for a 100,000-strong employee base by 2030.”

As Shaan Zaveri, Partner, Terazo Network LLP. & Terazo Fintech LLP & Collated Ventures, rightly puts it, “GIFT City is undergoing a transformative phase, quietly evolving into a global financial hub through strong support from the GIFT Authority and IFSCA. As India’s only IFSC, it’s not just another project; it’s a strategic move to bring offshore financial activity back to Indian soil, with top-tier infrastructure and progressive policies. Early pioneers recognized the opportunity early on, and now rising demand, investor interest, and a growing sense of FOMO are driving momentum across the board.”

GIFT’S TECH & INFRASTRUCTURE EDGE

Technology has been a leading force in developing high-quality commercial projects throughout the state. Sharing his perspective on how projects in other parts of the country and state differ from those he has worked on, Tejas Dalal, Managing Director, Hitech Projects Pvt Ltd, articulated, “As a local project company, we’ve seen that most developments in GIFT City now fall into the tall building category, which often raises concerns about technical competency. However, we’ve consistently adapted by leveraging the latest technologies and structural systems, many inspired by high-rises in India and globally, to meet tight timelines and deliver faster, more efficient construction, making tall buildings in GIFT not just feasible, but exciting to work on.”

With developers demanding faster timelines and technology-driven solutions, GIFT City has the potential to grow rapidly and compete on par with major metro projects across the country.” As per Nisarg Acharya over the past decade, GIFT City has transformed from a concept into a thriving business and lifestyle hub, with commercial projects, growing residential areas, and active social infrastructure. “As the working population increases, new developments like luxury hotels, parks, and large-scale events are helping reshape public perception and enhance livability. With a strong mix of BFSI, tech, and emerging GCCs, GIFT is fast becoming a key growth engine where companies start small and scale rapidly.”

Shreyans Shah added, “GIFT City is set to benefit significantly from major infrastructure projects led by the Government of Gujarat, including the upcoming bullet train that will connect BKC to GIFT City in just 3 hours and 20 minutes by 2028–29—offering a smoother, more productive alternative to air travel. With additional developments like the Sabarmati Riverfront extension, faster airport access, and unmatched plug-and-play infrastructure for power, water, and connectivity, GIFT City stands out as a model of efficient, future-ready urban planning.” GIFT City offers single-window clearance, with all major approvals and infrastructure already in place, allowing developers to focus purely on design and execution.

Backed by strict quality standards, expert support, and seamless coordination between the authority, co-developers, and the state, every building meets Grade A+ standards by default. S K Patel offeres another perspective, “While developers are introducing premium and branded housing options, the strong infrastructure and rising preference for quality living are driving consistent demand for compact, well-connected homes within the city, despite higher prices compared to surrounding areas.” Tejas Dalal added, “GIFT City follows a strong and detailed SOP for quality assurance, with physical inspections at every slab stage to maintain construction standards. Since we already operated with ISO certifications, ERP systems, and mobile tools, aligning with these protocols was seamless, and we appreciate the rigorous checks, especially for high-rise projects using advanced materials like M70 concrete and deep foundation systems.”

WILL GIFT CITY ATTRACT INDIA’S HNWIS?

As the city is positioned to be a major player in the future of fintech in India and the world, it seems keen on winning over local Indian investment. And some of the examples have already been set by the real estate developers.

Shaan Zaveri stated, “Investing in real estate overseas is often complex and inaccessible for individuals living abroad, which is why we’re focused on creating a more seamless, regulated pathway for international investors to participate in Indian real estate. Through GIFT IFSC, we’ve launched a project using asset tokenization – a blockchain based solution that fractionalizes real estate, making it fully digital, secure, and tradable across 12 notified currencies, 24/7, from anywhere in the world. Our venture, Oryx, a partnership with Savvy and Collated, is among the first globally to do this under a regulated framework, offering investors not just access but confidence, and we believe this model could soon become the norm, much like how SIPs and stock trading evolved into everyday digital tools.”

Shreyans Shah added, “We’re actively developing commercial and premium residential projects in GIFT City, with top clients like Bank of America, Infosys, and Wipro, and are also delivering a standalone campus for Queen’s University Belfast by year-end. Our upcoming 3 million sq. ft. commercial project will include a major F&B hub, leveraging GIFT’s unique permissions for wine-and-dine experiences. Additionally, we’re launching an AIF under the IFSC framework to enable global investors to participate in India’s growth story through seamless, dollar-based investments in real estate and other assets.” SK Patel added, “Currently, we are working in the Domestic Tariff Area (DTA) of GIFT City, where our residential project is set for completion by the end of this year, and our commercial project, NARBDA – a first-of-its-kind composite structure in Gujarat – is scheduled for delivery by next year. We’ve also launched a mixed-use development that includes retail, commercial space, and a 210-key five-star hotel, with all approvals in place and construction underway, aiming for timely completion as planned.”

Tejas Dalal added, “We’re currently working on two projects in GIFT City and over a dozen in the main city, and thanks to our early experience with tall structures in GIFT, we’re now able to apply those advanced construction techniques to meet the rising demand for iconic high-rises across the city.”

THE CRITICAL HURDLES

For any business, setting up a fund in GIFT City will require planning and early engagement with regulators. Experts share that the companies especially smaller Category I & II AIFs with the minimum corpus would need the firm willingness to operate within a still maturing landscape as initial setup can be expensive and time-consuming. However, the long-term potential remains strong and promising. Talent Retention by far is the most significant challenge when competing with cities like Mumbai, Singapore, and Dubai. GIFT City is attracting top tier of global finance and tech talent, but it requires a vibrant “live-work-play” for people to relocate - top-tier international schools, hospitals, diverse cultural and culinary scenes, and a thriving social fabric. Startup Integration: While GIFT City is fantastic for large, established players, is it truly seamless for an early-stage f intech startup? There’s still a perception that the entry barriers and operational complexities are geared more towards the giants than the disruptors. The next phase of Gift City growth hinges on solving these more complex challenges. The need for harmonization between the onshore regulations in India and GIFT Cit and enhancement of local infrastructure development and a social ecosystem for executives, would indeed solidify GIFT City’s position as a leading financial hub.