AHMEDABAD: After having spent seven years in Middle East countries, Rizwan Sheth wants to settle in Ahmedabad and start his own business. He is advised by the property brokers to buy an apartment in Vastrapur. It is a location in Ahmedabad, which is known for the Indian Institute of Management, Ahmedabad from a professional standpoint. For nature lovers, this area is famous for the Vastrapur Lake.
It is the most posh area of Ahmedabad city. It is famous for various shopping malls, lakes, gardens, hospitals and bungalows. Many rich people including top government officers stay here. It is seen as one of the fastest growing areas in the city. Located beside the Sarkhej-Gandhinagar Highway, the area is famous for its line of restaurants and shopping malls. The futuristic electric cremation house is located in this area. Other landmarks of this area are the gurudwara and the Nehru Foundation/Centre for environment education.
Bodakdev, an area adjoining Vastrapur, is turning out to be a posh area with a high real estate market value. It also houses the elite High Court judges of Gujarat state.
The best part about the area is that despite of being one of the most upscale locations of Ahmedabad, some reasonable properties with modest budgets are still available in this micro-market. It is seen as an upscale market, which still has modest property options available for the buyers.
The prevalent rate in this location ranges between Rs 4000- 9000 per sq feet, depending on the project, site and the amenities. In the last one year, this micro-market has seen the prices first softening up and then stabilising. Since most of the demand is coming from end-users, chances of speculation are very less.
For someone like Sheth, who wants to have an apartment and office in the vicinity, many analysts believe that it is the ideal location. Rental values of commercial properties are hovering around Rs 100-125 per sq feet. The capital value of commercial property in this market ranges between Rs 5,500 to 7,500.
This price range of both, residential and commercial properties can be termed as modest, keeping in mind the location, its connectivity, growth potential and thriving economic activity. Since most of the big retailers have already settled in this market, chances for appreciation in both, rental yields and capital value, are very high in this market.
This west part of Ahmedabad city is poised for big ticket investments once some of the infrastructure projects in the vicinity are completed. It seems many of the expat NRIs from Gujarat, who are looking forward to settle back in Gujarat, Vastrapur is an ideal location with a modest budget. The only thing that goes against this micro-market is the fact that if all the NRI enquiries in this market start translating into sales/lease, the location may not offer a modest option to the budget conscious buyers in this market. Till then, many prospective investors are keeping their fingers poised.