14 townships in Ahmedabad to narrow demand-supply gap

Many MoUs have been signed, by many major players during the recently concluded Vibrant Gujarat Summit 2011, for 14 township projects in and around Ahmedabad. And it is the city’s real estate developers who have actually begun batting big on Ahmedabad’s growth potential.

Although the township projects are conceived as long-term schemes, they will infuse considerable supply of residential units in the city — and will reduce the demand-supply gap.

Three township projects have already been launched within the AMC and AUDA limits and a dozen more have been promised. Experts in the markets believe that these projects will help in putting pressure on price rise, providing wider choices for buyers and also in infusing fresh supply.

“The township projects are definitely going to affect the demand-supply equation. However, only time will tell us the exact impact as majority of the developers are yet to take a final call on the types of houses they are going to provide,” said Nirav Kothari, local director, Jones Lang LaSalle, India. The experts suggest that infrastructure will be the key issue for the success of such projects. As most of them are on the outskirts of the city, the developers need to contribute most to the facilitation of infrastructure in those areas.
Although most of the players who signed MoUs for the township projects are local, there are a few like Tata Housing. This will create competitive environment and will lead to huge choice for the buyers, improved construction quality and modern amenities.