Every MBA aspirant in the country knows that Ahmedabad is the home to the best management institute (IIM) in the country. However, Ahmedabad is much more than a typical college city. Dubbed as the commercial capital of Gujarat, it is the largest city in the state. With new buildings and constructions springing up every day, here’s why realty investments along the growth corridors of Ahmedabad is a good idea.
Importance of Realty in Ahmedabad
The boom in new real estate projects in Ahmedabad is the prime reason why this city is considered as one of the top realty markets in the country. For example, the Delhi-Mumbai Industrial Corridor (DMIC) project is one of the biggest state-sponsored projects in the country. In the 2016-17 budget, the government had allocated as much as Rs 1,400 crore for the development of this project. The aim of the DMIC project is to develop industrial clusters across six states in the country. This includes the Ahmedabad-Dholera region in the state of Gujarat. This forms a trio of growth corridors in Ahmedabad which have fuelled real estate development in the city.
The Growth Corridors
There are three growth corridors in the city which have considerable potential for growth in the near future. These are:
North Ahmedabad (towards Gandhinagar)
Sanand Sarkhej Road
The Dholera Special Investment Region (SIR) is one of the fastest growing regions in the country. Once completed, it is expected to be six times the size of Shanghai! With development going on at a rapid pace, there is great potential for real estate development in micro markets along this corridor.
Bavla is one such prime example. Until recently, development in the area was at a nascent stage. However, the growth of infrastructure projects in this area and its proximity to both Ahmedabad city and Sanand make it a viable investment option. In the last few years, many real estate companies have moved into this region. You can select between a host of investment options that are available at affordable prices. For example, you can get residential plots measuring 5,000-17,000 sq ft for Rs 21 lakh to Rs 1.4 crore.
The North Ahmedabad area is another potential area for investments and to buy property in Ahmedabad. The Gujarat International Financial Tec-City (GIFT City) in Gandhinagar is considered to a world class financial centre that is likely to generate more than two lakh jobs. With Gandhinagar being just 25 kilometres to the north of Ahmedabad, it is expected that many young professionals working in GIFT City may stay in Ahmedabad and commute to their place of work.
Another important fact is that the Metro Link Express for Gandhinagar and Ahmedabad (MEGA) is set for trial runs in the month of September. This means that the commute from Ahmedabad to Gandhinagar is going to become faster and easier for daily commuters. But the bottom line is that the growth in infrastructure translates to an increase in the demand for real estate in places such as Chandkheda and Motera which lie in this corridor.
Sanand Sarkhej Road
Sanand is another city in Ahmedabad district that is growing at a quick pace. It is considered as an emerging automobile hub in the country. In the recent years, it has attracted investments worth billions of dollars from some of the largest companies in the world. For instance, when Tata Motors has its state-of-the-at automotive facility in Sanand.
The growing importance of Sanand is a major boon to real estate players. This is because there is a huge potential for expansion of the city on the Sanand-Sarkhej Road. Considering the fact that Sanand is a smaller city at the moment, the real estate prices are expected to be lower in this region. If you are an investor looking for long-term appreciation, this could be a viable opportunity. Residential developments and other properties (offices and commercial buildings) are expected to populate this corridor very soon. With more global companies getting ready to set up shop, this area could see better rates in the coming years.
The growth corridors in Ahmedabad are on the cusp of development. There are a lot of infrastructure projects going on which has in-turn transformed the city. As an investor in real estate, it is probably the right time to take a close look at the city of Ahmedabad.