QUESTIONS LINGER ON GUJARAT REDEVELOPMENT POLICY

Gujarat’s redevelopment journey is reshaping its urban fabric, aiming to modernize aging housing while addressing infrastructure and planning challenges. Industry leaders and experts weigh in on the policies, market trends, and systemic gaps that will determine whether this transformation delivers long-term value for both residents and the city.

As per the prominent Gujarat developer Rocky Israni, Managing Director - India Investments, Pacifica Companies, redevelopment in real estate takes many forms, but in Gujarat the focus is on private society redevelopment, where the land is owned by residents or a housing society and Gujarat Housing Board (GHB) redevelopment, where the land is owned by the GHB and residents hold a 99-year lease. According to policy, buildings become eligible for redevelopment after 25 years from their Occupancy Certificate (OC) date, though in reality their life span is often between 40 and 50 years when, buildings inevitably deteriorate beyond repair, making redevelopment a necessity.”

THE SLOW PROGRESS

The Gujarat Government passed its redevelopment act in 2016, creating a formal framework that had been missing despite strong demand for redevelopment. Under this law, if all co-owners of a building agree, redevelopment can begin immediately; if the building is more than 25 years old, the consent of at least 75% of owners is enough to start the process. The need for redevelopment stems from three main factors: safety and structural stability, the absence of basic facilities, and the demand for a modern lifestyle. Safety is paramount—if a building is structurally unsafe, residents should evacuate without delay, regardless of the law, and seek alternate housing. Many older buildings, especially those from the 1970s and 1980s, lack essential features such as parking, lifts, and fire safety systems, which are particularly important for senior citizens.

Suresh Patel, President, NAREDCO Gujarat stated, “While redevelopment is essential, progress has been slow— over the past decade, of more than 120 projects initiated under both the Gujarat Housing Board and private societies, only a fraction have been completed, highlighting the need for a more public friendly and viable policy framework.”

Paresh R Jani, Founder & Proprietor, Jani & Co, Solicitors & Advocates pointed out a significant point of contention. “There is the lack of explicit mention in the existing redevelopment policy regarding who would bear the financial burden if a developer fails to repay loans taken for a project. Residents’ unions fear that the original members of these housing societies, who have already paid for their homes, could be held responsible for the developer’s mismanagement. However, the Housing Board insists otherwise.

LOCATION ISN’T EVERYTHING ANYMORE

Most successful redevelopment projects are located in central areas, yet their selling prices often do not match those in newer, upcoming localities, case in point is the Naranpura’s prices that remain lower than those in Thaltej. Anand Choksi, Founder & Managing Director, The Real Estate Connect elaborated, “Ahmedabad, like many global cities, has grown mainly toward the west, driven partly by poor upkeep of older buildings and infrastructure. Even with new constructions, neglected surroundings make neighborhoods less appealing. Unlike cities such as New York, where central areas retain value, prime Ahmedabad locations like Ashram Road often see prices stagnate or drop. This outward migration strains national resources, requiring new infrastructure on undeveloped land while older areas remain underused.”

Suresh Patel added, “Redevelopment is essential to reverse this trend, not only to rebuild structures but also to rejuvenate entire neighbourhoods. International examples show that when both buildings and their surroundings are upgraded consistently, property values remain strong for decades. Unfortunately, in Ahmedabad, many residents who can afford it simply move to newer, better-developed areas, while older localities lose appeal and value despite sometimes having newer buildings. As a result, centrally located areas like Naranpura often see lower prices than outer locations such as Racharda, which defies logic given their connectivity and business activity. This reflects a deeper urban planning gap, without holistic redevelopment, the city will keep sprawling outward at the cost of its core.”

Rocky Israni shared, “That’s not the case in every city, but it is a specific challenge in Ahmedabad. If property prices in redeveloped areas do not match or exceed those in newer localities, the economic and financial viability of such projects becomes questionable. In places like South Delhi, Bandra, Juhu, or Khar in Mumbai, redeveloped projects command a clear premium over outer areas, but Ahmedabad has yet to see the same trend, and that is the problem.”

Paresh Jani commented that Ahmedabad’s open geography allows expansion in all directions, unlike Mumbai. Mumbai’s infrastructure, even in its outskirts, is stronger than prime roads like Ashram Road or CG Road, helping sustain higher property values.” In Ahmedabad, weaker infrastructure and abundant land push residents toward newer localities, a trend intensified by lax enforcement of development rules. Even with incentives like higher FSI along the Sabarmati Riverfront, developer interest remains low. Unless the government takes a holistic approach to upgrade both buildings and surrounding infrastructure, older areas are unlikely to see significant price growth.”

TWO SIDES OF THE COIN

According to developers the law states that if a building meets the specified criteria, it is eligible for redevelopment, but there is no obligation to proceed with it. Structural safety must take priority over every other consideration. Yet, many owners focus primarily on the facilities, the additional space, or the financial incentives they will receive. The main concern should be the quality and structural integrity of the buildings they will have after redevelopment. They also propose, that just as occupancy certificates are issued to buildings worldwide, the government should also issue non-occupancy certificates to structures with serious safety issues, ensuring they are evacuated immediately. On the other hand, the residents’ concerns revolve around prohibition on developers mortgaging Housing Board land for loans and assurance that newly built homes allocated to old members will be free from any financial encumbrances. The lack of these written safeguards is causing considerable scepticism among the residents involved in the redevelopment projects. A government order issued on March 18, 2025 assures - no land can be used as a collateral and mortgaged for redevelopment purposes and sole liability for loan defaults lies with the developer. Old members’ homes and units are protected. While this statement offers comfort, until the policy is updated in black and white, the question lingers.