R-II zone along BRTS and proposed Metro route result in land appreciation.
After the skyrocketing rates it witnessed in the last couple of years, realty sector in Amdavad has not seen much movement for about a year now. However, the announcement of high density corridor along the BRTS route and proposed Metro corridor in the new development plan (DP) by Ahmedabad Urban Development Authority (Auda) has infused some life into the realty market at least in residential zone-II (R-II).
Land prices in R-II zone on the stretch from Iskcon Circle to Bopal have appreciated by 65%, reveal nearly half a dozen realty deals that took place recently. In the new DP for Ahmedabad, the development authority has provided more construction area by raising the floor space index (FSI) limit from 1.2 to 4. This means that a developer can build a 40,000-square metre area on a 10,000 sq m plot now. “Real estate projects have become more viable along the corridor because of higher FSI,” said Neeraj Tomar, head of Ahmedabad operations at Jones Lang LaSalle.
As a result, the developers have started taking interest in development of plots located on the corridor. Recently, around half a dozen deals have taken place in the area. The deals include a local newspaper’s plan for a joint venture with a leading local developer for setting up a commercial project to replace an existing retail property as well as a retail mall sold to a consortium comprising a real estate developer and a stock broker.
Moreover, one of the leading developers HN Safal has also planned an office complex in place of some residential bungalows on SG Highway.
According to sources in the real estate market, all the deals have been struck at prices starting from Rs70,000 going up to Rs1.10 lakh a square yard.
Before the DP was announced, the land prices in R-II zone stood at around Rs50,000-60,000 per square yard. “Following the announcement of the DP, land price along the BRTS stretch from Iskcon to Bopal has appreciated by more than 50%,” said Pravin Bavadiya, chairman and managing director of consultancy firm, City Estate Management.
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