New realty projects in the area are bringing developers back to this most expensive of locations in Ahmedabad.
CG Road — the most fashionable area of Ahmedabad — is back in the reckoning in the city’s real estate market, despite it being among the city’s most expensive localities. Sources in the city’s realty sector said that recent projects launched around the Centrepoint Circle and new ones planned in the area have again created a demand for real estate on CG Road.
In the past one year, several projects in the retail segment such as Benzer and Future Group’s Central Mall, among others, have come up on CG Road and in the surrounding areas.
Some other projects such as Venus Square (a luxury mall on CG Road) are proposed in areas in the vicinity. These are likely to be launched some time this year. These projects are bringing developers and retail companies back to the area, away from recent realty favourites such as SG Highway. Current retail property rates on CG road are higher than they were last year; yet investors are keen to put their money in such properties.
The president of Gujarat Institute of Housing and Estate Developers (GIHED), Suresh Patel, said SG Highway had seen tremendous growth and it still had great scope for development.
“But CG Road has its own clientele,” he said. “The area continues to be in demand because it is located in a thickly populated area of the city.”
He further said that CG Road was always a thriving commercial area. “But because of malls such as the Central Mall and new projects — such as the Venus Square Mall — proposed in the area, the road’s standing as the most fashionable area of the city has risen higher,” he said. Shrenik Shah, CEO (land and commercial), Space Management Ltd, said that CG Road’s greatest strength is that it is located in the heart of Ahmedabad.
“For this reason, it is easily accessible from virtually all zones of the city,” he said. “SG Highway, on the other hand, is on the western edge of the city. It is attractive mainly to people living in the city’s west. This is why CG Road will never go out of fashion.”
Shah added that property rates on CG Road were 20% higher than on SG Highway and that the same was true for rentals.
Some developers believe that, in the future, the valuation of real estate in the city will become more area-centric.
Executive director of Venus Infrastructure Ltd, Rajesh Vaswani, said that his company plans to launch a luxury mall on CG Road because it is in the centre of the city. “For this reason, it will have more footfalls,” he said.
Vaswani further said that, gradually, people will prefer to visit malls in their own locality than in some far-flung area of the city. “This is because of the problem of traffic congestion,” he said. “It also means that different areas such SG Highway, 10 Acre Mall in Maninagar and others will have their own ‘catchments’. Over time, people will prefer to go to the mall nearest to their place of residence.”
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