Tracking Ahmedabad Real Estate In PM Narendra Modi’s Era..
Mr. Vivek Sahasrabudhe, JLL India
Over the past couple of months, no other Indian state has
been talked about as much in the Indian media as Gujarat. Be it about Mr.
Narendra Modi, former chief minister of Gujarat who is now Prime Minister of
the nation or the growth model of the state.
This fast developing province has seen the decade-long
efforts start to bear fruit in the area of infrastructure development
especially in Ahmedabad, the commercial capital of the state. In recent times,
the city has become the symbol of the state’s progress story.
The uninterrupted electricity and water supply, the wider
roads and the rapid bus transit system have helped Ahmedabad to cement its
position as a manufacturing hub.
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| Vivek Sahasrabudhe, JLL India |
In the past, despite the city being known for its
industries, particularly its textile and pharmaceutical enterprises, it did not
create a sector-specific demand for real estate, unlike the IT / ITeS sector
did for Bangalore and Pune.
Up until recently, the city produced mostly blue-collar
jobs and those employed preferred affordable housing, particularly in the
unorganised real estate sector.
To attract the participation of the organised real estate
sector, affordable and well-connected real estate developments were on the
checklist of the Ahmedabad Urban Development Authority. The planning resulted
in well-rounded growth as Ahmedabad, unlike other cities, did not have any
geographical constraints on expansion.
Also, the committee refrained from giving any specific
city node an undue advantage, due to which capital value appreciation was held
in check for many years!
Nonetheless, in recent quarters, noteworthy growth was
registered in residential real estate prices. Residex, the index published by
the National Housing Bank covering price movements in urban and semi-urban
areas, showed that Ahmedabad residential real estate prices have grown faster
than other major Indian cities over the past four quarters.
It is true that current market sentiment has turned
positive following the country’s recent general election but physical
indicators have played a vital role too.
The employment opportunities generated by the
industrial/manufacturing segment have contributed most to the evolvement of
real estate activity in recent times.
With improved infrastructural facilities, many new
manufacturers of automobiles, engineering and instruments have established
themselves in the city and existing industries have been expanding their
plants, especially on the outskirts of Ahmedabad in Sanand and Changodar. To
support the manufacturing hubs, logistics activity has also been growing fast.
Newly generated employment has looked at organised real
estate to fulfil its housing needs as prominent developers have been offering
small ticket size affordable dwellings in the outskirts of the city.
Another growth driver relates to the fact that Gujarat is
part of the Delhi Mumbai Industrial Corridor (DMIC), which is an ambitious
project aimed at developing industrial zones.
Ahmedabad is anticipated to be an important link in this
corridor. The city is expected to create more jobs, attract investment and
ultimately generate greater housing needs.
There will be no surprise if other cities in Gujarat
follow Ahmedabad’s example in the coming years.
About the author
Mr. Vivek Sahasrabudhe, Analyst - Research & Real
Estate Intelligence Service, JLL India
For Media Contact
Arun Chitnis
Head – Corporate
Communications & Media Relations
JLL India,
Pune 411001.
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