Smart City Project: Impact on Real Estate in Ahmedabad

Sneha Gunu S

Introduction

A world heritage city, embellished with historic sites, enthralling architecture, sizzling street food, astonishing monuments, elite industries, fascinating education institutions and whatnot. Isn’t it seems like a dream? And what if the city is going to become a smart city? Isn’t it feels like a fantasy come true? You may wonder why I am building a castle in the air. Then, I want to tell you that this castle is not in the air anymore. It has reached Earth and more particularly, on motherland India. Are you still wondering what I am talking about? So, let me clear to you that I am talking about the Manchester of India, Ahmedabad. Ahmedabad is the most populous city of Gujarat, located beside the Sabarmati River. It has emerged as an important economic and educational hub. 

Although, the hit of Covid-19 affected the real estate sector of Ahmedabad to a great extent. The prices have been stagnant during the 2016 to 2019 period. But, a historic high was seen in 2019 but this momentum also broke down because of a covid-19 pandemic. The real estate in covid-19 has seen a virtual standstill in the second half of the year 2020. Residential areas fell approximately 61% and office transactions observed a fall of 15% in 2020. However, the real estate market of the city regained strength in the second half of the year. Office transactions have exceeded by 13 times or by 1174% and residential areas grew by 139% in the last quarter. Moreover, the real estate sector was almost doubled in 2020 compared to the 2019 quarterly average. The resumption has improved home buyers as well as investors and was successful in bringing the demand back. The Gujrat government has taken some great steps for uplifting the standstill real estate sector like increasing the maximum area limit for affordable houses and enabling agricultural land to be used for affordable houses. The steps have a positive impact on the real estate sector. But still, it was not the required push. The Dholera smart city begins to spread its magic and the whole scenario has changed. 

Ahmedabad has observed huge growth after the development of Dholera SIR and with the growth of Ahmedabad city, more and more people are demanding properties in Ahmedabad and as a result, the graph of the real estate in Ahmedabad is continuously rising. Like the fascinating growth of Ahmedabad over the years, the real estate sector of Ahmedabad has also touched great heights now. It has increased manifolds. The exceptional achievement which will always sparkle in the crown of Ahmedabad is the smart city of Dholera SIR. The smart city of Dholera and Ahmedabad is going to be twin cities in future and this is what has allured innumerable buyers to buy properties in Ahmedabad. The project has also taken the real estate in Ahmedabad to an unimaginable level.

The Smart City project by the Indian government has acted as a big boon for the real estate sector as well as housing finance companies. It will fill the gaps in the development of new and modern houses with all the latest facilities like smart solutions, sustainable development, security of women and children, sanitation, etc., along with providing people with a decent quality of life. The promises made by the government appears to be a dream for most of the Indians and that’s why people are feeling a magnetic pull from the properties and every possible investment opportunity present there. As a result, the prices of land has risen to a great extent. People have started buying agricultural land, plots, villas, bungalows summer houses, farm houses etc. For Rowhouses, bungalows and villas, the prices in the West part of Ahmedabad are booming as development in Ahmedabad is moving westwards. Numerous big investors like Adani, Amarpali Ltd., Astral Ltd., Cardila healthcare Ltd., etc. For affordable homes, Shilaj, Vaishnodevi, Chandkheda and Nikol Vastral are touching heights. People who want to buy budget houses or apartments are moving towards these regions, in particular. The properties located on the Sardar Patel ring road are reaching a huge population of investors as it is connected to the whole city, is observing great development and is considered as one of the most peaceful areas of Ahmedabad. Furthermore, a huge demand has been seen in weekend homes. Not only the big investors but also numerous small investors are coming up.

Moreover, along with the Indian investors, foreign investors are also seeing Dholera as a huge investment opportunity. The city is pulling investors like a magnet and the Sardar Patel ring road is coming out as an investment hotspot for real estate.

Thus, Ahmedabad has seen great development over time and there is still more to come. The Dholera smart city project will be completed by 2042 and with the increasing developments in the Dholera SIR, the demands of the property will also increase. Like the GIFT City, Gujrat has attracted some of the biggest companies with its development, Dholera is also expected to do wonders and all the wonders in Dholera will do magic in Ahmedabad, especially in the real estate sector. The sector is observing a good rise in residential as well as industrial and agricultural sectors and it can be forecasted that there is a period of bloom ahead.

So, invest in Ahmedabad and you will not repent in future. 

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