Gandhinagar, the capital of Gujarat, was considered mainly a centre of political activity. But, for the last couple of years, the city has emerged big on the real estate map with many residential projects coming up in and around it.
Gandhinagar is all set to outshine Ahmedabad over the next couple of years with its leaping growth rate of residential land prices, according to a research report by Crisil.
Gandhinagar, the capital of Gujarat, was considered mainly a centre of political activity. But, for the last couple of years, the city has emerged big on the real estate map with many residential projects coming up in and around it.
Crisil research expects residential land prices in Gandhingar to increase by 10 % in 2011 (from November 2010 levels), and by another 5 % in 2012 (over values seen in the second half of 2011).
On the other hand, Ahmedabad is expected to register only around 6% capital value increment in 2011 and only 3% in 2012.
Political activity has been at the heart of Gandhinagar which did not have much economic activity in and around the city. However, things have changed in the last few years.
The economic endeavours in and around Gandhinagar are expected to create demand in residential space over the next two years, says the report.
Many companies have signed MoUs with the state government for setting up industrial units in and around Gandhinagar. Moreover, the upcoming GIFT — Gujarat International Finance Tec — city also is likely to boost demand for residential space in Gandhinagar, said sources in the market.
The state government’s decision to form a municipal corporation has also boosted the real estate market in Gandhinagar.
Moreover, the development is expected to be on fast track once the political wing comes into action after the civic body elections, said sources.
Besides, the area between Ahmedabad and Gandhinagar is witnessing major development which will lead to merger of both the cities in a short span of time.
A number of residential schemes have come up and many are in the pipeline at Koba, Chandkheda, Adalaj, Sargasan, Bhat, Sughad and other areas linking Gandhinagar with Ahmedabad, said sources.
The land around Gandhinagar did not witness any speculative increase in prices, which resulted in quite affordable property rates compared to Gandhinagar.
The realtors have pinned their hopes on the proposed Metro Rail project connecting Gandhinagar with Ahmedabad for faster development of the city.
"Good infrastructure coupled with connectivity will boost the development in the area," said Suresh Patel, president of Gujarat Institute of Housing and Estate Developers (GIHED). He also added that that the new areas have been able to maintain green cover, which is the identity of Gandhinagar.
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