Ahmedabad is the largest city and the commercial capital of Gujarat. This is one of the biggest reasons why real estate markets are booming in the city. With population, even the trunk infrastructure is constantly improving in the city. For any city, real estate sector goes hand in hand with infrastructure. The better the infrastructure, the higher its rates. The city has constantly upgraded its infrastructure, in terms of public spaces like riverfront, transport connectivity like BRTS and the upcoming metro. On the other hand, the growth stimulators for the real estate market in Ahmedabad comes with the development of the residential market, malls, office spaces and flyovers.
After the enactment of the Gujarat Town Planning and urban development act (GTPUDA), the city grew in a very organized and planned manner. With implementation of Town planning act, there was a uniform and planned growth. The western part of the city has grown as per Town planning scheme. This difference can be easily observed in the Eastern and the Western footprints of the city. It is observed that the maximum planned activities of residential, commercial and retail development are witnessed in the western micro market of Ahmedabad.
The city is geographically divided into two parts by river Sabarmati. As it can be seen in the heat map below, the real estate prices are higher on the West as compared to the East. In the map below, the areas marked with yellow are the areas with comparatively lower prices, which include, Narol, Nikol, Odhav, Isanpur. The average price here is between Rs.2000-2800 per sq ft. whereas in the areas marked with orange and red are the prime areas of the city. The average price here is between Rs. 4000-7000 per sq ft.
The western belt of the city currently has the most premium locations and real estate projects of the city. It has grown tremendously within a short span of time. The chart below compares the rates of 5 different areas of the city with their per sq. ft. rates. Out of the 5 areas mentioned in the chart, 3 of them, i.e. Iscon Ambli road, Ambli, Bodakdev have a higher price trend as compared to Vasna and Motera, which fall on the East.
These trends show the growth trajectory of Ahmedabad in the Western Direction. Western direction has grown and is giving consistent returns since the past few years. Some of the prominently grown areas in the West include, Bopal, Ambli, Thaltej, Sindhu Bhavan road. The kind of development in these areas include, High rise apartments, Bungalows, Villas, Malls, Corporate offices, Commercial complexes.
Since these areas are developed via town planning scheme, the roads are wide and able to cater to the traffic. Also, the areas are well connected by SP ring road and BRTS bus facility.
If one observes the historical price trends in these areas, the rates of these areas were very low as compared to today. For instance, the chart on the left shows the growth in rates of a locality Bopal in the West. In just one year, the prices have surged in the area. Similarly, other areas along this belt are growing.
Ahmedabad is currently as competitive as other metro cities. It is providing a wide range of options as well as the comfort of luxury class. The developers in the city today are offering all class 1 services to the premium sector which includes, a perfect view, a good location, and amenities like club house, swimming pool, private gardens, play area, safety and security. In order to generate wealth as well as to experience the luxury of premium real estate, Ahmedabad would be the perfect hotspot.
The trends mentioned in the report justify this by showing how in the past the western belt in Ahmedabad is a safe option for investment. The thing to be kept in mind here is that, in real estate better returns are generated by investing in an area on the growing curve than an area which is already having higher rates because the rates then become stagnant. The Western Ahmedabad is currently a goldmine for real estate investment.