The realty scene in Ahmedabad is glowing, what with realtors sealing one mega land deal after another, within the past one fortnight. Real estate experts in the city said land deals worth a massive Rs900 crore had been inked in the city in the past 15 days. This is the highest figure for real estate transactions in a fortnight for the past one decade, higher than even the boom years for the sector.
Some big realty companies, including Savvy Infrastructure, Goyal Construction, Gala Group and SN Group, have led this spectacular realty surge. The land deals clinched in the past fortnight include the Rs150 crore worth deal in which the Delhi-based realty giant, Parsvnath Developers Ltd, sold off 27,000 sq meters in Satellite.
Shrenik Shah of Space Management Ltd confirmed the phenomenon. “Land deals worth Rs9,00 crore signed in Ahmedabad within a fortnight is a 10-year high for the city,” he said. “The realty market has been showing positive sentiments, and the boom is the result of that. Not only developers, even investors are bullish about investing in land.” Shah added that money from abroad may have been pumped into some of the deals.
Market sources said that Goyal Constructions and Dhiren Vora — both of whom are partners in Gokul Dham, a scheme on Sanand Road — are reported to have sold 1.5 lakh sq yard of land to Gala Group.
Similarly, the Savvy Group, which is better known by its Shapath brand of commercial schemes, is believed to have bought, for a new project, about 5,300 square yards of land opposite the Gujarat high court. Realtors say the rate of land in the area could be anywhere between Rs55,000 and Rs60,000 per square yard.
Around 3-4 land parcels have been sold in Prahladnagar area and on the 100-feet road in Satellite. Market sources said that a majority of the land deals had taken place for residential projects, while a few were for commercial and hospitality constructions.
Shubhankar Mitra, assistant vice-president with the global real estate consultants, Jones Lang Lasalle Meghraj (JLLM), said land owners had been offering land at realistic rates. “The rates are relatively lower than what was being demanded till last year,” Mitra said. “Also, the land involved in all the deals is located in strategic areas of the city.”
Mitra said one reason for the spurt in the realty sector is the rapid pace of industrialisation. Another reason is the NRI summit next month that has been proposed by the state government.
Commenting on the sudden realty boom, director of Real Estate Studies and Management Academy (Resma), NK Patel, said, “There is great demand for property in the residential segment,” he said. “That may be one reason for the unexpected surge in land deals.”