Problem Of Unsold Inventory Is Troubling Ahmedabad Real Estate

December 7th, 2015

For the first time in 5 years, Ahmedabad has recorded its lowest ever sales in real estate. Currently there are approximately 42,000 brand new constructed home with absolutely no takers that are piling up on the inventory list. 12000 of these homes are located in West Ahmedabad and 13,400 are in East Ahmedabad and show no signs of possible sales.

According to leading experts, these flats in Ahmedabad could take over three years to see a sale. The next couple of years are crucial to try and offload the existing property inventory in the city. The western part of the city has seen no sales from the inventory volume for the last 3 years whereas the sales in the east and the north have been idle for almost 2 years now. In the last 6 months alone, Ahmedabad has recorded the lowest sales volume in the last 5 years. In the first half of 2015, sales dipped by 26% in comparison to the first half of the previous year.

Authorities and developers are curbing the launch of new projects in Ahmedabad and are instead focusing on clearing the current inventory. Of this, East Ahmedabad has proven to be most affordable among other regions which indicate a property rate of Rs, 3000 per square feet. However this locality has seen maximum number of new projects in the past year.

One of the factors affecting the sale of property in Ahmedabad is the dormant infrastructural development. The necessary redevelopments that should have been done to keep pace with the times have not been completed and as a result, people are opting to stay away from the real estate market. The lack of price hike has also resulted in lowered sale of residential units.

Once upon a time in the 1980’s and 90’s, Ahmedabad was a commercial hub and there was a rapid rise in prices. During this time, Ahmedabad real estate saw quite a gain in profits. However in the past few years, due to the lack of price rise, investors are staying away from this market. As a result, there are plenty of vacant home, just waiting to be purchased in Ahmedabad.

The only way experts see the Ahmedabad real estate market flourishing again is with the development of infrastructure. Even if private developers do their part, there may be the possibility of reviving the lost sales.

The growth plans of Ahmadabad Urban Development Authority

October 9th, 2015

Are you planning to invest in Gujurat’s commercial capital? Ahmadabad is the best place to invest as per the ratings it has earned from top realty market research analysts. Thanks to the inventive development plans by the Urban Development Authority, the city now enjoys the attention of both Indian as well as international reality investors. The growth plans of Ahmadabad Urban Development Authority or AUDA have projections in place for the next 20 years to come.

The salient features of AUDA’s growth plans are summarized as below:

  • Plan 2011-2021
  • The ten-year growth plan is an incubation stage keeping in mind the growing pressure on both industrial and residential space in Ahmadabad. The 10 year plan will pave the way for further realty growth opportunities beyond 2021 till 2035. The growth plan is likely to free an additional land area of 200 square kilometres over the period of next 5 years. The prices will definitely move upwards in terms of Floor space Index (FSI).

  • Affordable housing connected by Rapid Transit routes
  • AUDA’s growth plan is based on upcoming rapid transit route which will act as lifeline for all the housing projects that are likely to come up in next 2-3 years. The focus is largely on the SP Ring Road that has been dubbed as the ‘realty heaven’ in Ahmadabad. Its green belt area, together with social infrastructure will be used as a realty template for other development projects.

  • BRTS + Metro Rail: Coming Soon
  • The FSI draft plan will be shared amicably between AUDA, BRTS, AMC and Sardar Sarovar Narmada Nigam Limited. It will curb all possible clashes and interferences in future. In some cities like Indore, Bhopal and Jaipur, there have been negative feedbacks on development projects owing to mismanagement and miscommunication between the different administrative boards. AUDA growth plan will definitely change the landscape of social infrastructure and transportation in the next ten years through 2021.

  • Solar panel-powered Street Lights and Traffic signals
  • International living standards will be reflected on the roads and streets. As promised by AUDA, every street and by lane will be lighted by the sun-powered batteries and lamps. The automatic timers and switchers used in the traffic signals will change the look of the city, considering the rush everyone is in. By 2020, the vehicular traffic volume is going to swell by 130 per cent. With hardly any plan to create pedestrian routes, the AUDAA growth plan is considering options of underpasses, foot over-bridges (FOBs) and exclusive walk-lanes.

  • Incentives for Green Building
  • AUDA is going to encourage the projects that will build green projects with amenities like Rain water harvesters, solar boards, personnel garbage sump and disposal systems and cycling zones. It will be completely developed keeping in mind the seismic activity in the zone. In fact, 70-80 square kilometres of the space has been reserved exclusively for affordable green housing projects. The affordable housing project developers and builders have an opportunity to earn an additional 10 percent subsidy in case the home measures 50 square metres. For homes measuring up to 66 square metres, the builder can earn 20 per cent subsidy, paying additional for jantri rates.

    5 Hot Locations in Ahmedabad

    August 27th, 2015

    real estate destinations in AhmedabadAhmedabad is one of the most attractive locations in Gujarat. From NRI investors to domestic buyers, everyone looks at Ahmedabad real estate as a good investment option in the medium to long term. The success story of Ahmedabad real estate can be gauged from the fact that the city ranks as one of the most attractive destinations pan India. Here is a look at five hot locations for investment in Ahmedabad real estate.

    Prahlad Nagar: Prahlad Nagar is a popular real estate location ideally suited for both commercial and residential projects. Located in the southwest corridor of Ahmedabad,  Prahlad Nagar represents the zeal of modern day Ahmedabad with lush green gardens, lakes, wide open spaces and good civic and social infrastructure. Prahlad Nagar is well connected to all parts of the city making it the biggest plus point of the area. Prahlad Nagar is located close to the SG highway while the Vastrapur Railway station is within walking distance from the area. The area has all amenities like schools, colleges, hospitals and shopping markets in its vicinity. Super markets such as Reliance Fresh and Sahara Q Shop cater to the daily needs of the people. The average rental for a 2BHK apartment in Prahlad Nagar ranges from 16 to 20,000 per month.

    South Bopal:  South Bopal is a satellite town of Ahmedabad which attracts a lot of people for its quiet ambience away from the hustle and bustle of the city. The SP Ring Road connects South Bopal to all parts of Ahmedabad offering its residents the serenity and calmness of living in a quiet satellite town not too far from the central Ahmedabad city. South Bopal has been highly developed in the past 5 to 7 years. This development was speed up by after the construction of Sardar Patel Ring Road. The locality comprises of almost all well developed civic amenities and infrastructures.

    Naroda: Naroda is a suburban town located in the northeast part of Ahmedabad located just 9.5 kilometers from the Sardar Vallabhbhai International Airport. Naroda is divided into two parts, Juna (Old) Naroda and Nava (New) Naroda offerign ideal investment options in both commercial and residential real estate projects. With a large number of IT companies and MNCs setting up base in Naroda, the area offers good rental prices for apartments.

    Chandkheda: Chandkheda located in north-west Ahmedabad is one of the most attractive real estate destinations in Ahmedabad today. While Chandkheda has majority of residential projects, the fast pace of commercial centers like shopping malls and market places makes it ideal for commercial investors as well. Chandkheda is home to a number of reputed educational institutions and hospitals. The average selling price for residential real estate in Chandkheda is close to Rs. 3500 / sq. ft.

    Thaltej: Thaltej is a prime real estate destination located at the midpoint of between SG Highway and Sardar-Patel (SP) Ring Road. Affordable prices with a cal serene environment and lack of crowded projects makes Thaltej a gem of an area for residential projects in Ahmedabad city. Thaltej has a number of projects ranging from 2 BHK apartments to penthouses and duplex apartments ranging from Rs. 30 Lakhs to Rs. 2 crores and above.

    Ahmedabad Municipal Corporation Cuts Taxes On The Property Rate By 50%

    August 12th, 2014

    As per the latest news feed, it has been finally stated that Amdavalis finally won. It has been found out that AMC or the Ahmedabad Municipal Corporation is also going to provide a rising public ire related with the hiked up price range of the property tax bills. Moreover, this has also decided to offer nothing but a huge monsoon discount bills, associated with their entire pricing zone. According to the standing committee, it has been found out that the owners of both residential and commercial properties, who previously received a hike amount on the bills, are going to get hold of 50% rebate over the entire hike zone.

    There are 8 lakh owners of the property, who is known for receiving the hike bills, associated with the inclusion of the Jantri rates of the revised segment of the year 2011. These are also associated with the tax calculations, making it a proper method of the new owners. Moreover, it has also been found out that the AMC has already assured that those, who have paid the bills, are going to enjoy the rebate. This rebate is going to be credited to their original bills as issued with the upcoming financial year.

    As per the comment made by senior officer of the AMC segment, “The owners who are known for offering bills and are yet to pay the amount, is surely going to receive a new bill set, associated with the coming months.” As per the records till March 31st, it has been clarified that the property tax departments are going to maintain a total record of the 17.89-lakh properties, which can be seen in Ahmedabad. The recent hike also affected a lump sum part of the 47% of the total unit. Under these calculations, there are nearly 8.44 lakh properties along with commercial units, as well.

    On the other hand, the reports also state that there are nearly 62,000 properties, which have already reported for their reduced bill taxes. Moreover, there are nearly 8.91 lakh properties, which can also be seen with no hike on the reported bill. There are various other claims made by the tax officials on this behalf.

    It has been found out that AMC was supposed to pay an amount of 96.92-crore rupees to the segment of the new hike in the tax property segment. This monetary service has now been halved. Moreover, it has also deal with the forgone of an amount of 63-crore rupees, related with the revenue that is to be offered along with a 50% slash, in the rating segment. These are associated with the increase related with the rate of the property.

    The reduced structure of the tax segment is going to take place within few more time and the companies are going to offer 50% slash in the ratings, related with the increment in the tax of the property zone. Moreover, there are certain reduced tax structures, which can also take place with the following budget plans, until and unless the municipal commissioner is not going to propose a new structure of the tax.

    Ahmedabad Real Estate Has Witnessed A Steady Growth And Rapid Development

    July 1st, 2014

    With rapid development in the industrial sector and growth both in residential and commercial sector real estate market in Ahmedabad has witnessed a positive trend. Ahmedabad is the largest city in the state of Gujarat and is well known as the commercial capital of the state. This city is the base of textile, chemical and pharmaceutical industry. The city boasts of reputed educational institutions such as NID, IIM and CEPT. IN the last few years Ahmedabad has established itself as a major IT and ITES hub. All these factors make it a popular residential destination.

    In the last decade real estate market has grown remarkably due to the progressive policies and good governance. In the current times the city has emerged as an important investment destination in India. Real estate market in Ahmedabad has caught the attention of investors across the country. Prices of commercial properties are rising by 20 to 30% mostly in areas such as Highway, Ashram Road, Sarkhej-Gandhinagar and some regions in Eastern Ahmedabad. Demand for residential property is on the rise in Nicol, Nava Naroda, Bodakev and South Bopal. To meet the demand of investors both end-users and luxury segment developers are coming up with new projects.

    Even in the outskirts of the city apartments, bungalows, penthouses and townships are coming up to meet the demand of individuals who look forward to investing in the fast developing city. As land is becoming scare there is a growing demand for apartment houses in high rises in the city. The popular residential areas in the city are Sahhaibaug, Bodakev, Vastrapur, Thatlej, Prahladnagar and Maninagar. Areas around Sarkhej-Gandhinagar Road, Sardar Patel Ring Road and Maninagar are witnessing rapid development. Realtors feel that there will be 10 to 15 % growth in property rates in all sectors in Ahmedabad.

    Some places in Gujarat which rank high in the real estate list are Surat and Vadodara. Surat will soon become an important diamond trading hub in the country. It is well connected both to Mumbai and Delhi. It is located in the Golden quadrilateral Highway. Some suburban locations too are coming up. Another destination in Gujarat which is catching the attention of investors is Vadodara. Ahmedabad is one of the fastest growing cities in India. It is an important center for education, industries and information technology.

    Ahmedabad is one of the cities which is expected to witness an upsurge in property prices. This city has been in new for the infrastructural development which is taking place. It offers a good quality of life. Several multinational companies have set up their offices in and around the city. Some major developments which have taken place in the city are well planned integrated townships, IT corridors, hotels and SEZs. The city is well connected both internally and to other important Indian cities. The Bus Rapid Transport System in eth city has made commuting easier. In the last few years Ahmedabad has transformed into a destination which is at par with international standards.

    People Looking Forward Towards Satellite In Ahmedabad For Rental Apartment Services

    May 23rd, 2014

    Ahmedabad_City_Photographs_Shivranjani_Char_Rasta_(Satellite)__to_S.G.Highway_17

    Satellite, which is a well known locality, is all set to remain a favorite for those associated with the rental accommodation in Ahmedabad. This place is known for connecting old Ahmedabad City to some of the latest developments in the zone of commercial and residential sectors. This locality is also known for retaining the 1st position in the list, which focuses towards top 10 places in Ahmedabad, which are mostly preferred for rental services. This was the latest statistical result, which was held in January to the March, 2014 quarter segment. This result was mostly dedicated to the PropIndex, which was the result of an Indian Report of apartment Index service.

    This area was also rewarded as the number 1 in the previous quarter segment, as well, which was the mark of October to December 2013. According to the owner of a broker firm, it has been found out that the demand related with rental properties is always on the upside scale in this segment. The main reason can be the developed locality, when it comes to physical and social infrastructure developments and this is surely going to boasts the good connection system. The close locality towards the commercial sectors can also be defined as a proper reason, behind the growth of the Satellite zone.

    Proper connectivity is going to go through the area of AMTS service and this is also going to deal with the BRTS, Ring road and also the SG highway functionalities. The range of the rental apartments are going to vary from one place to another and the value will be something around 10,000 to 40,000 rupees per month. This data was provided by reliable apartment rental sites, which is nothing apart from accurate. The most preferred apartments in this locality are both 2 BHK and 3 BHK flats and villas. The rent services of 2 BHK apartments are something around 10,000 to 12,000 rupees per month. The sizes of these apartments are going to range in between 900 sq ft and 1300 sq ft.

    The rental prices of 3 BHK flats are more or less higher than the 2 BHK flats and the prices are related with 15,000 to 40,000 rupees per month. The sizes of these villas are somewhat ranging from 1600 sq ft to 2100 sq ft. Moreover, apart from sizes, the price variations of the apartments are also going to depend on some of the other amenities, which are associated with these above mentioned apartments. Some of those variations are gated community services, builder floor apartment segment and also the segment of semi-furnished, unfurnished or furnished segments to deal with.

    The majority of renting people are mostly associated with the corporate offices of this locality or any of the nearby places. People, who are currently working in Prahlad Nagar is also going to take help of rental properties in Satellite region in Ahmedabad. As the rental prices in Prahlad Nagar are high, therefore, people mainly try to deal with the rental services in Satellite. The owners take special care of the rental services, making this place a lucrative offer for many.

    Ahmedabad witness second-highest drop in office space demand in the country

    November 20th, 2013

    According to the report prepared by Cushman and Wakefield Ahmedabad witness 37% dip in demand for net commercial office space when compared to the figure for the last year quarter. In fact, the city witnessed the second-highest drop in office space absorption in the country after the National Capital Region (NCR) and Kolkata, both of which saw a drop of 41%.The office space referred to herein the report is Grade A space which includes areas like SG Road, Satellite, Prahladnagar, Ashram Road and CG Road.

    According to the Cushman and Wakefield, Ahmedabad witnessed an overall net absorption of approximately 86,000 square feet of Grade A office space during the third quarter. When compared to the previous quarter, there has been a marginal increase of 6%. The report says that the average space transaction size in Ahmedabad was in the range of 6,000 to 7,000 square feet in the entire year. Of the 86,000 square feet of new office space, most were taken up in suburban business centres like Sarkhej-Gandhinagar Highway. The SG Highway contributed 62% of the new office space and Prahladnagar contributed 38%.

    However, in quarterly comparisons, Ahmedabad, Chennai and Pune witnessed a positive trend in leasing. The report also points to various sectors that had their share in leasing of office space. While the manufacturing sector took 38% of space, the banking, financial services and insurance sectors took up 35% and while the aviation sector saw 27% absorption. But the report claims that there has been an overall decline in the rentals for the last six months. The report further claims that nearly 1.1 million square feet of Grade A space will be developed till December and this will be largely across SG Highway and Gandhinagar areas. The report predicts that there will be low levels of pre-commitments in these projects which will, in turn, result in increasing vacancy levels. This would put additional pressure on rental rates on vacant properties along SG Highway and Prahladnagar.

     

    Source: The Times of India, Ahmedabad

    Real estate prices are pushing schools outside the AMC limits

    September 2nd, 2013

    The real estate prices are pushing the schools in Ahmedabad outside the AMC limits. Several schools from Bopal to Vaishnodevi Circle are springing up to cater to the increasing urbanization. A slew of upcoming residential projects and quality infrastructure around Sardar Patel Ring Road are the new catchment areas for the latest breed of high-end schools. In the last few years, international schools like Gems Genesis at Vaishnodevi, Shanti Asiatic at Shela, Zydus School of Excellence at Godhavi, Red Bricks at Santej, Olive Green International School on Bhadaj road have built large campuses on the other side of SP Ring Road to offer superior facilities to children. Schools are coming up with a multitude of facilities – from landscaped gardens to large swimming pools and lush green football fields besides regular labs and theatres. Located at a premium location – with proximity to Gandhinagar, Bopal and the airport – these schools seek to provide a pollution-free environment with a touch of nature. Going a step ahead of the norms set by the national boards, these schools not only focus on student-teacher ratio but also have a better student-space ratio. Mumbai-based Singapore International School (SIS) also plans to set up a campus on the stretch between SP Ring Road and SG road, by 2014.

    According to Minal Desai, director, education, Gems Genesis International School, “The needs of schooling are changing. With increased physical activities, students need vast outdoors, which is unaffordable within city limits. The outskirts offer peace besides lush and green environment that is ideal for studying. Also, there are about 15,000 housing units coming up on this stretch, which makes it a viable option”. M M Jani, district education officer, said, “In the last two years, about 10 new schools have come up around SP Ring Road because of development around the area. As the number of urban dwellers increases, we are expecting more schools to come up.”

    Source: The Times of India, Ahmedabad

    GMC plans to implement “House verification system” to point way to Gandhinagar

    August 15th, 2013

    Gandhinagar Municipal Corporation (GMC) is planning to implement a new system, called ‘house verification system’ to make it easier for newcomers to locate the houses they are looking for.  As per GMC sources, this system has already been implemented in Chandigarh. Under this new scheme, each house will be given an address plate with a code and name of the owner. The code, when entered in the computerized system, will reveal the names of the owner of the property and his family members. The code will serve as a kind of ‘ready reckoner’ for those who are new in the city and are trying to find a particular house of building. According to a senior official of the urban development department, “The database will be used with a special base map of the city which will help visitors navigate to the desired location. The name of the occupants of the house will also be put up on the information network. But there are privacy issues too that will be associated with the system”. The standing committee of the GMC will pass the proposal in the forthcoming meeting of the standing committee. According to the official, “The GMC will prepare the special boards for residents. We will include both government and private houses in the verification system. Villages recently included in the city will also be considered for inclusion in the system”. The officer further said that the city shares many similarities with Chandigarh. Roads in Gandhinagar do not run parallel to its boundaries but are all positioned at an angle to protect motorists from the direct afternoon sun. Each sector in Gandhinagar is 185 square acres in size, less than the 250 square acres of sectors in Chandigarh. Up to the mid-1980s, most houses in each sector had a common colour strip on their terraces that was identified as belonging to their respective sector.

    Each sector has self-contained a neighborhood with a shopping strip, community centre, garden, clinic, school and so on. Pedestrians here do not cross roads to reach neighbourhood community centers. Each sector is designed in such a manner that a bicyclist can traverse a neighbourhood easily.

    Source: The Times of India

    Venus Parkland

    February 9th, 2012

    The Venus Parkland is fully built with modern amenities and facilities to its residents. It is one of the upcoming residential projects of Venus Infrastructure & Developers Pvt. Ltd. This project gives all the facilities and amenities, which is larger than life experiences. This project offers 2 and 3 bhk apartment with in the range of 1215 to 1620 square feet. The rooms of Venus Parkland are created in such a way that it gives you the feeling of living in the lap of nature while experiencing the luxury.

    Venus Parkland built with modern amenities and facilities. Some of them are Amphitheatre, Multipurpose Court, Dedicated Children’s Play Area, School Children drop-off zone, Exclusive sitting area for Senior Citizens, Jogging Track, Ample Visitor’s Parking Space, Sufficient landscaped Garden, Low rise apartments with elevators, Exquisite landscaped Garden, Big Community Hall & Party Plot, Wide Internal RCC roads upto 7.5 meters, All internal roads with landscaping and street lights, Boundary wall with 24/7 Security, Intercom, Club House and Rain Water Harvesting. Venus Parkland is build and designed as per vaastu and earthquake resistant.

    Venus Parkland is located in Vejalpur road Ahmedabad which is among one of the developed parts of the city with various shopping complexes, schools, hospitals, restaurants in a close proximate distance. Hospitals like Medilink, Shalby and Sterling are at mere distance from the project. Kid zee, Shanti Asiatic School, Devashish School, Anand Niketan School are some of the schools near to Venus Parkland. Thus, it can be said that, the Venus Parkland project is the best place to live in, with all modern facilities.

    Venus Infrastructure & Developers Pvt. Ltd. has built apartments which are very affordable and in peaceful areas. Their aim is to deliver good quality homes to their customers. Over 20 years of business, Venus created themselves as one of the most trustworthy builders to their customer by building quality homes and delivering it on time. Since its inception, it has a good record over the residential and commercial projects. Their dream is to mould people’s dream by developing homes that lives up to the mark. They have won numerous Gujarat Institute of Housing and Estate Developers (GIHED) awards for their landmark creations. Some of them are ISO 14001: 2004 certifications for environmental management and ISO 9001:2008 certification for management processes. Some of the completed projects of Venus are Paramount Residency, Sapphire, Broadway Business Centre, Surbhi, Crystal Arcade, Setu, National Plaza and Venus Atlantis. Some of the upcoming projects of Venus are Venus Parkland, Venus Ivy, Venus Square, Venus Amadeus and Venus Pahel. Venus Parkland is one among the best innovation of Venus builders, with lots of facilities and amenities, which is larger than life experiences. They have achieved complete customer’s satisfaction through their quality work and personalized service.