Property prices in some swaths of areas such as Paldi and Shahibaug have spiked spectacularly.
Realty rates in the vicinity of the Sabarmati riverfront project — in some swaths of areas such as Paldi and Shahibaug — have spiked spectacularly, becoming four times as high as they were just five years ago. For example, a 100 sq yard apartment in Shantivan, Paldi, was priced Rs6 lakh in 2005 (Rs6,000 per sq yard). Today, the price is Rs24 lakh (Rs24,000 per sq yard).
Experts attribute the explosive increase in rates to premium that the riverfront project has attached to its realty environs.
Realtors say that the prices of properties, even if old, begin to rise incrementally in relation to their proximity to the riverbank.
Jasmine Shah, a resident of Komal Enclave apartments, says that buyers have been flocking the area and residents are quoting a price of Rs24,000 per sq yard. He said the demand represented a significant rise in the property prices. “That is why I am deferring the sale of my flat,” Shah said. “We were planning to move to another area, but after considering the developmental work on the banks of the river, my family decided to stay put.”
Kiran Purohit, a businessman who recently bought a bungalow near the riverfront project, said “I had to pay almost thrice the amount that a similar property cost a year back.” Realtors believe that land parcels beside the riverfront project will become 15% costlier than the plots away from the river in the same area. Hitesh Shah of Space management Ltd told DNA. “Very few land parcels are open for the development of residential schemes, and therefore these properties will definitely be sold at a premium.” With the riverfront project nearing completion, some developers are planning to launch their schemes. Others plan the beginning of construction by next quarter. One such company, the Dharmadev group, has launched a residential scheme, Neelkanth View, on the banks of Sabarmati in Shahibaugh.
The work on the 160-apartment scheme, comprising three- and four-bedroom-hall-kitchen homes will begin next month. CMD of Dharmdev Group, Umang Thakkar, said, "The scheme has been planned in such a way that all the apartments will be river-facing. The price of these luxury flats per sq ft will be 15 to 20 per cent more because of their location."
Praveen Bavadiya of City Estate Management said, "People opt for areas like Shantivan near Paldi, Vasna. These areas have the potential to support new residential schemes."
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