AHMEDABAD: Realty market is very sensitive in today’s scenario and any increase in borrowing cost will lead to consumer disappointment. However, we also understand that strict measures are required to curb the burning inflation and Rupee fall, but it is also equally important to keep other aspects of economy while taking strategic decisions. Although, looking at the strong fundamentals of the Indian economy and its robust growth, all these seem to be temporary.
With the continuous increase in the buying power of Indians, residential property demand is going to be significantly high for the next 25 years. Also, one always has to keep in mind that Indian real estate market is very dynamic and different places have their own trends. Like in some mega cities, there is a clear problem of excess inventories which cannot be backed up by demand. But, cities like Ahmedabad, which have seen significant growth, will continue to be a fruitful territory for the coming decades. To be honest, commercials are a little weak, as it is more driven by economical and market sentiment, but it will be back to its full swing soon.
Demand and supply
Good Location has become a subjective term. Where numerous options are available, the criteria for a good location keeps changing. However, we have always preferred Ahmedabad-Gandhinagar Twin City as it has maximum potential of growth in the coming times, and the maximum value returns can be obtained.
Prahladnagar, New East Ahmedabad and localities towards Gandhinagar are the most developing areas. We are focused on the area around Gandhinagar, where top schemes in plotted development provide maximum returns to our investors.
Buyers in Ahmedabad
Maximum volume is being generated in the mid-size residential schemes, as most of the developers as well as buyers belong to that segment. High-end luxury segment has flourished like never before. Especially in farmhouse development projects, we have seen a wide variety of customers investing within a vast range from Rs 8 lakh to Rs 8 crore and who want to earn maximum returns on investment. Ahmedabad is on its way to a more planned and organised city. The new redevelopment and slum rehabilitation projects would make Ahmedabad the best city to live in.
Current economic scenario
With the increase in dollar over rupee in the last few months, the investment scenario for NRGs and NRIs to invest back in India has become very favorable and worth utilising. Thankfully, in the holidays when we would have lots of NRGs coming to Gujarat, the real estate market would benefit. On the other hand, there is also cost inflation and estimates escalate due to high import costs.
Government is indeed doing a good job, but there is always a scope for improvement. New policies which infuse confidence in buyers, and also which enhances the service delivery to end users would be appreciated. However, investor education is a key factor in driving real estate market and it also impacts the government to form policies that create a win-win situation and creates a better society. Ultimately, the government should focus on reducing lead time for permissions and come up with pro-active development mechanism.