GURGAON: Ahmedabad is poised to be an automobile manufacturing hub in India, said Jones Lang LaSalle Property Consultants Pvt Ltd (JLL) Monthly Real Estate Monitor in November 2014.
According to the report, industrial developments at Sanand and Bechraji, 25km and 100km from Ahmedabad respectively, are to be developed as automobile manufacturing hubs in India.
The city, with its many textile, pharmaceutical and chemical industries, has seen rapid industrial growth.
Quality infrastructure, competitive real estate cost and well administered law and order make Ahmedabad a desirable residential and business destination.
The residential market in Ahmedabad is diverse with units starting from as low as 500,000 rupees (RM28,100) in the affordable category to as high as 50 million rupees in the ultra-luxury category, said JLL. The city also has a mall and high-street retail developments, while the Prahaladnagar and Satellite area has emerged as the new office hub of Ahmedabad. The Gujarat International Finance Tech City is also near Ahmedabad, which is planned as a smart city.
Meanwhile, the bus rapid transit system (BRTS) contributed to the rise of real estate prices on the outskirts of Ahmedabad. There are plans to increase the floor space index and have a transit- oriented development along the BRTS corridor, which will further boost economic activities in the city.
The Indian government has taken initiatives to develop affordable housing in the city and eased foreign direct investment for the construction sector to attract investments in October 2014.
Among the proposed new rules are the reduction of built-up area from 50,000 sq m to 20,000 sq m, and the reduction of minimum capital requirement from US$10 million (RM35.7 million) to US$5 million. The move was hailed by the real estate industry as it will help developers to raise foreign funds, said JLL.
In October 2014, office space in Ahmedabad saw a notable rise in demand. The Prahlad Nagar precinct, 9km from the city, registered a rental value of between 35 rupees and 50 rupees per sq ft (psf) and capital value from 6,000 rupees to 7,000 rupees psf.
This article first appeared in The Edge Financial Daily, on January 9, 2015.