GUJARAT: If the Gujarat real estate market in general and developers in Ahmedabad and Vadodara in particular, have kept the momentum going in favour of them, then it is more by design than by default. While the property markets across the country have been subdued in the last couple of years, the markets across the state have actually bucked the slowdown blues. As a matter of fact, going by the triple measurement yardstick of the growth of the given property market- capital appreciation, rental appreciation and property transactions, Gujarat has by and large emerged as the slowdown proof market. That makes the state’s property market unique at a time when other markets are faltering on nearly all the three key indicators.
There has been decent appreciation, if not phenomenal price hike, across the markets of Gujarat. In terms of rental yields, the markets across the state have shown a healthy growth in the range of 0.5-1.5 per cent (as per the figures available with Track2Realty). Booming economy of the state and the migration of qualified professionals are cited to be the reasons behind this. The best part is that the rate of transactions has also been decent enough to indicate that the property market is in the most sought-after investment portfolio in this part of the world. It seems both the residents of Gujarat and migrant professionals are buying property in the state.
Analysts tracking the Gujarat market are of the view that a combination of factors is leading to the northward movement of the property market over here. While the progressive and industry-friendly policies of the state government are, by and large, helping the cause of the sector, what actually has aided in the growth of the real estate market in this part of the world is their own assessment of the ground realities.
The developers in Gujarat are grounded in terms of their project offerings as well. As a result, Gujarat real estate has been flexible in terms of its marketing strategies and is also constantly innovating to keep the momentum going.
Dhaval Ajmera, director, Ajmera Realty and Infra, says, “Gujarat real estate seems to be best placed in today’s turbulent times. Gujarat has tremendous potential and that has made it slowdown proof.” He adds, “Real estate is a very critical sector of our economy which has a huge multiplier effect and facilitates in driving financial growth. Hence, Gujarat is expected to revitalise with the help of infrastructure growth which will in return speed up the real estate activities both in the commercial as well as residential spaces, thereby, making it slowdown proof.”
By and large, there is a general feeling that the policies of the state government are conducive for the growth of the sector. Various policies have been initiated which have led to the progress of the sector at large. However, it is not just the policies of the state government but profound and constant marketing innovations which have also played a role in aiding to the growth of realty market. Also, the reason for success of Gujarat real estate is that it is predominantly dependent on the quality of projects and infrastructure that get constructed and delivered. A number of developers have contributed to the market with their finesse expertise in this market.
Manan Choksi, regional director, RE/MAX MGM also agrees that Gujarat real estate has been the front runner in weathering the turbulent times. He reasons, “Gujarat is one of the few states in India where there is a stable state government since many years and that has given Gujarat market a distinctive advantage. Moreover, the steady growth of industries, cities and infrastructure in the state has made Gujarat avoid a major slowdown. Further, the overall innovations by developers have also helped in the realty growth.”
In a nutshell, it is the state government’s policies that have helped the real estate sector to keep afloat in times of crisis. However, the game changer moves have been made by the developers as well. Even after the subvention scheme was withdrawn last year, when many of the realty markets across the country felt the heat, Gujarat real estate market was resilient. The fact that it is still the end-user driven market despite being high on the interest level of investors, makes it a quite unique market.
Some of the prominent real estate developers in the state have got the national exposure as well, most notably in the neighbouring markets of Mumbai where they have already experimented with the tried and tested marketing formats. That has helped them to have the learning which is now being applied with success in the Gujarat market as well. As of now, most of the marketing formats and strategies seem to be heading in the right direction in this part of the world.