AHMEDABAD: A aberration from the conventional trend of big-ticket real estate deals involving land, a bunglow in the city is set to be sold for a whopping Rs 100 crore. An Ahmedabad-based industrialist with interests in the steel sector is selling his swanky bungalow on the posh Iskcon-Ambli Road, according to top market sources. A developer recently signed an agreement to buy the bungalow, which stands on a plot of 4,500 square yards. According to sources, the land cost is around Rs 2 lakh per square yard. Iskcon-Ambli Road is emerging as a hotspot of ultra-luxurious residential apartments and premium office spaces. The stretch has seen land deals worth around Rs 1,500 crore in the past year. Several land deals in the past year have been sealed at prices ranging from Rs 1.80 lakh to Rs 2.70 lakh per square yard. Market sources say the bungalow deal is expected to be in this range. The Iskcon-Ambli Road has seen several transactions as developers get FSI up to 5.4 on this stretch. There has been an increased demand for residential and commercial development because the stretch is well connected to the industrial hubs of Sanand and Changodar. Many industrialists and top executives are buying residential properties on this road. Demand for commercial properties and office space on this road is growing steadily, say real estate sector experts.
AHMEDABAD: Five grant-in-aid colleges and a self-financed college in Ahmedabad, all affiliated to Gujarat University, have written to the varsity requesting permission to close this year. According to sources, the colleges cited several reasons but the real one is the sprouting of private universities, where these colleges foresee greater benefits. Sources said every year the university gets requests for closure but this year six colleges have done so, a high number. Most of these colleges want to get affiliated with private universities as they feel the grants from the government are not adequate. The managements of some colleges are also eyeing forays into real estate, sources said. Most of these college premises are at prime locations in the city and they feel it would be more beneficial to build shopping malls on these plots or to simply sell the land, rather than run an educational institute. Many of these colleges also feel that the government is constantly making rules for grants stricter, due to which it is becoming harder to keep functioning. Sources said one self-financed BBA college on Ashram Road has also applied for closure, as its teaching staff is demanding salaries at the level recommended by the Seventh Pay Commission.
GANDHINAGAR: Acting on long-standing demands of the real estate sector, the Gujarat government has initiated action to revise the common general development and control regulations (CGDCR) to remove ambiguity in various policies regarding urban development. A key source privy to the development said, “There is much ambiguity in policies relating to housing redevelopment, hotels and hospitals and development plans of different cities. All these factors have been hurting real estate development in the state.” “Considering representations from various sectors, the urban development department has initiated the process to revise the CGDCR and bring all policies, norms and GDCR at a par. Besides, other demands of real estate associations are also being considered,” sources added. Sources said at present there are many ambiguities in the hospital policy and CGDCR, which has been hurting growth of the health sector in the state. “Various medical bodies have been requesting the government to remove contradictory provisions which adversely affects new projects in the state in the hospital sector. Likewise other sectors have also demanded amendments in the CGDCR,” sources said. CREDAI, the apex body of the real estate sector, has given several representations for revision in the CGDRC which will boost the real estate development and employment in the state, sources said.
The calendar year 2022 began with extreme volatility and uncertainty across all asset classes thanks to rising concerns over inflation, the adverse fallout of the Russia-Ukraine war on the global economy and subsequent interest rate hikes. With crude prices touching an all-time high of $125, metals and gas prices touching historical peaks and retail inflation going up backed by supply chain bottlenecks and overall inflation touching decadal highs across many developed countries, central banks, including the Reserve Bank, were compelled to tighten monetary policies which eroded additional liquidity from the market, said analysts. As a result, all asset classes witnessed a massive wealth erosion except gold and bank deposits, which delivered stable returns. FIIs withdraw, indices plungeThe Russia-Ukraine war situation coupled with the concerns over global inflation has kept Indian equity markets volatile and investors on tenterhooks. Analysts suggest that foreign institutional investors (FIIs) withdrew close to Rs 2 lakh crore. However, domest ic retail as well as institutional investors kept their faith intact. “Domestic funds are continuously pumping funds into the Indian equity market. This has kept Indian benchmark indices performing comparati vely better so far. Bond markets, on the other hand, have seen the India 10-year G-Sec yield cross 7.25% level now. The divergence in the performance of various equity indices has remained huge. While BSE Power stocks delivered 20% positive returns in 2022; BSE IPO and BSE IT are down by 20%. Such a huge divergence of 40%+ in two sectors that too in merely six months, is not heard of for many years,” said Gunjan Choksi, director of InvestAlin.“This shows that Indian investors and fund managers were extremely careful in choosing the right stocks and selling the ones where they don’t see much potential in the short term,” said an analyst. Gold delivers stable returnsThanks to the Russia-Ukraine war situation, gold prices witnessed slight volatility towards the end of February and early March, when prices touched Rs 55,000 per 10 gram. However, yellow metal prices did not breach the all-time peak of Rs 58,000 reported soon after Covid-19 lockdown. Over a five-month period, gold delivered the highest 5.72% returns. While this is not the safe-haven commodity’s best return but at a time when volatility has remained high in equity markets, investors continued to put money in gold. “Lot of people sold off household gold to meet emergency expenditures for medical and domestic needs soon after the Co vid-19 lockdown of 2020. Despite relatively lower returns, investors’ faith in gold as a safe-haven asset class has rema ined intact. Despite a momentary spik e in the prices of gold, investors have not profitbooked gains and instead sustained investments. The recent festive season sale on Akshaya Tritiya also reflected this,” said Haresh Acharya, director, India Bullion and J ewellers’ Association (IBJA). Bank deposit rates upA mid rising interest rates for a month and a half after the repo rate hike announced by the Reserve Bank of India, several banks have begun hiking rates on fixed deposits (FDs). Private sector lender, ICICI Bank raised interest rates on FDs of less than Rs 2 crore by 10-20 basis points on Ma y 16. Similarly, HDFC Bank raised interest rates on 9-month and above FDs by up to 20 basis points on May 18 this year. SBI, Federal Bank and Punjab National Bank too made similar announcements on rate hikes on FDs after the central bank decision. “Banks have always promised assured returns to their customers and therefore, at a time when volatility is high in the market, people often park their surplus funds and even profit-booked gains into bank FDs. This has sustained bank deposits over a period,” said a senior banking official on condition of anonymity. MF inflows continue, SIPs growMutual Fund (MF) investors from Gujarat have continued investing in various asset c lasses of MFs through this year as well. Overall assets under management for MFs in Gujarat touched Rs 2.68 lakh crore in April, up 3.57%. AUM of Equity Mutual Funds, which is 53% of overall AUM in Gujarat increased by almost 7% even after a drop of an average 5% to 6% in equity markets. “T his can be translated as a net rise of 10%+ in equity MF by investors of Gujarat – which once again reassures that investors here have their faith intact in Indian equity markets. These investments have broadly come via Systematic Investment Plans (SIPs) or via Systematic Transfer Plan (STPs) into equities in a staggered manner, which seems to be the right choice in such volatile times,” said Mumukshu Desai, director, Artham Finometry, a financial advisory firm. Overall, SIP nu mbers in Equity Mutual Funds are hitting all-time peaks every month. And now many investors are turning to Systematic Transfer Plan (STPs) for investing in Equity Mutual Funds or using Balanced Funds via Systematic Withdrawal Plans (SWPs) for generating regular tax-ef ficient income from their investments with much lesser volatility. Investors return to real estateThe calendar year 2022 has thus far remained positive for investors in the real estate sector. Overall, residential property prices have gone up by at least 5% in different parts of Gujarat including Ahmedabad whereas the office and commercial real estate segments remained stable. “We are also witnessing investors returning to the market because they feel that a cycle has started in this sector. Construction cost has increased, due to which real estate costs are going up and on the other hand, high inflation led to interest rate hikes. If the interest rate increases by 1%, it can lower the affordability by 7.5%. However, income growth in various industries is around 9-11%, and therefore, we believe affordability will not get affected in near future. Plotting segment has also seen appreciation of up to 10% in 2022 so far,” said Vivek Rathi, director (research), Knight Frank India.
Ahmedabad: Dipen Patel, an Ahmedabad-based businessman lost his vision completely in 2007, but he has mastered land deals. In a year, he does an average of 25-30 land deals worth crores and has never felt helpless because of his blindness.“My father, Prahlad Patel, started a real estate business and Kameshwar School. I joined the business in 1991 at the age of 21 and used to handle the government liaison work. I acquired expertise in land-related matters. In 1996, a year after my wedding, I started having problems driving at night and soon lost my night vision. I went to the top doctors for treatment in India and overseas. However, doctors said I had a diseases, retinitis pigmentosa, and I would gradually lose my vision.”Patel was stunned on hearing this. He was depressed for a long time. “However, I did not stop my activities. I continued working on my projects, and learned to work in new situations,” he says. He started losing his daytime vision gradually and had to stop driving in 1998. It was more difficult because he had vision and then lost it.“Mobile phones then arrived and I started using them. I continued to work in real estate. I would buy and sell land. I partnered with top doctors at the time. I bought a significant piece of land at Nidhrad village in 2003 and still hold it,” he says.His vision continued to worsen and had only central vision in the daytime by 2006. “By 2007, my vision was fully gone. I had many problems. Everyone believed I could not work but I did not surrender. I had expertise in land matters and decided to live with my new challenges.”He partnered with certain experts and set up some projects on his land. “I have a gift from God as far as identifying and evaluating land is concerned. After I lost my vision, I worked a lot in the Chandkheda area on land deals. I also bought land parcels in Gandhinagar and Nidhrad.”While not wanting to specify amounts, he said he does 25-30 land deals a year both in terms of buying and selling. He asks his daughters or employees to read documents to him.“I have always believed I can do anything. I take more time than others in doing things, but I do my work properly. Wherever I found things difficult, I found my way ahead. I bore many taunts but changed my energy. My Guru encouraged me in my difficult times and I have continued my business even after losing my vision,” Patel said.
Dear Amdavadis, like most of your fellow citizens, do you also nurture dreams of owning your dream home? Now, here’s your chance to take a step closer to your dream as the Ahmedabad Mirror Property Expo, brought to you by Nav Gujarat Samay, opens its doors to welcome you in today.State BJP President CR Paatil will inaugurate the expo at Shree Shakti Convention Centre.With close to 50 stalls offering some of the best deals on residential properties, commercial and office spaces, farm house and villas, the second edition has only gotten bigger and better.What’s more, you can speak to the State’s top real estate developers directly, seek expert advice, clear your doubts and make an informed decision before investing in your dream home.When: June 4 and 5, 10am to 8pmWhere: Shree Shakti Green & Convention Centre, near KD Hospital, Vaishnodevi CircleEntry: Open for all
Like every blockbuster property has its sequel guaranteed, here comes the second edition of the runaway hit, that is, Ahmedabad Mirror Property Expo. After an exciting first edition in October last year, Mirror returns with its power-packed second version which promises bigger, better and amazing choices.Our expo is a platform that enables real estate developers and their allied partners to showcase their brand to the right audience. In addition to the wide range of choices available to prospective buyers, the event provides exclusive property show offers.Among India’s most-sought-after real estate destinations, Ahmedabad features world-class projects at an affordable price. As a center for industries such as textile, automobile, heavy engineering, and pharma, Ahmedabad property prices will only rise once the city’s world-class infrastructure is built. The real estate market in this region will be shaped by the wide roads, metro, industrial zones, as well as the railroad network.There is something for everyone here – from spacious, well-ventilated rooms and work-from-home apartments to large outdoor areas, great green spaces, swimming pools, and large balconies.In the second edition of Ahmedabad Mirror Property Expo, aspiring home buyers will have the opportunity to meet the State’s top real estate developers, discuss their needs, and examine quality products and services. There will be more than 50 projects on display at the expo by leading developers in the city, including residential, commercial, office space, plotting, and weekend villas.So, mark your calendars, because your weekend is booked!When: June 4 and 5, 10am to 8pmWhere: Shree Shakti Green & Convention Centre, near KD Hospital, Vaishnodevi CircleEntry: Open for all
Despite demand for commercial and residential properties, developers are unable to leverage gains as raw material prices have gone up by 40%Buoyed by improved demand in both residential as well as commercial segments, the real estate sector is witnessing a boom. Clearly, 1,613 new projects were registered in 2021-22, despite a slight slowdown in the initial few months of the fiscal year – reaching nearly on a par with new project registrations in the pre-pandemic period. According to Gujarat Real Estate Regulation Authority (GujRERA), new project registrations stood at 1,732 in 2019-20. However, with average construction costs going up, developers are unable to reap the complete benefits of the boom time. Prices of steel and cement, the key raw materials in the construction industry, have shot up at least 40% over the past three to four months, adding to the construction costs and eroding profitability. Ajay Patel, chairman, Credai, Gujarat, said, “Rising prices of raw materials such as steel and cement have indeed derailed the pace of recovery of the real estate sector. Industry players had no choice but to increase property prices in both commercial and residential segments to meet rising input costs. This is giving them a chance to stay afloat. ” The rising input costs are pinching developers more because they’re unable to leverage the demand. Tejas Joshi, president, CREDAI, Ahmedabad, said, “Market sentiment has improved in a big way and demand for residential and commercial properties has gone up exponentially. This is clear with bigticket land deals and new project announcements taking place widely. Moreover, with a lucrative IT policy recently announced by the state government, fresh investments will be announced and the demand curve will further increase. ”Echoing a similar view, Taral Shah, managing director of a construction company, said, “The average construction cost has increased 12-15% over the last one year due to rise in raw material prices. Due to inflation, even labour costs have increased and so have most other indirect costs – all of which have a grave impact on the pace of ongoing projects. ” Recently, the state level quarry association too went on a strike which hampered construction activity for 15-20 days. This led to labourers leaving for their hometowns, further affecting the pace of projects. CONCERNS OVER REPO RATE HIKE:The RBI recently hiked the repo rate, and it is anticipated that a further rate hike is likely to be announced. Consequently, the effective interest rates on home loans have gone up. “The government recently waived customs duty on the import of certain raw materials, including coking coal and ferronickel used in the steel industry. This will lower the cost for the domestic industry and reduce the prices. Moreover, measures to improve cement logistics have been announced and we hope it will ease the prices of cement,” said Munir Shah, managing director of a real estate firm. DEVELOPERS AT A LOSS: As the market was in recovery mode after the pandemic ebbed, developers were in a position to absorb the rising costs. However, when the raw material costs saw an exponential increase, the developers had no choice but to raise property prices. With the demand remaining strong, prices of property may firm up further, say industry players. “This will not add to the profit of the developers but will cut losses. Builders have been operating on thin margins over the last few years,” according to industry sources. This in turn will have an adverse impact on affordable and mid-market segments and hit the developers who have taken up projects on low margins. This surge in costs comes at a time when the developers have been reeling from higher debt and liquidity concerns over the last few years.
AHMEDABAD: Iscon-Ambli road is emerging as the next uber posh address in Ahmedabad with a series of swanky and upmarket residential and commercial properties fast coming up in the area. In fact, the high street saw some fast and furious real estate action following the ebbing of second wave of pandemic with the four kilometre stretch from Iscon Crossroads to Bopal Junction recording at least a dozen major land transactions worth Rs 1,500 crore in the past year. Land parcels along the road for which deals were sealed, range from 5,000 to 10,000 square yards and are priced between Rs 1.80 lakh per square yard and Rs 2.70 lakh per square yard. The road is already home to some premium luxury high-rise apartments in addition to upscale commercial and retail complexes and presence of a luxury hotel. It has good proximity to major clubs in the city and has good connectivity to different areas in the city as well as the highway. Dhruv Patel, vice-president, Credai Gihed, said, "Iscon-Ambli road has become the most sought-after pocket for premium residential development. Several leading developers are bullish about launching prospects in this area because demand is very good for ultra-luxurious houses." Higher FSI at Iscon-Ambli road leads to project viability' Leading developers such as Sun Builders, Swati Builders, Iscon Builders, Sheetal Infrastructure, Palak Group, Sankalp Group etc have invested in land along this stretch over the past one year and have launched or are planning to launch projects soon. "Developers get higher FSI of up to 5.4 along this stretch and therefore, project viability goes up. Moreover, the demand for both residential as well as commercial properties is high along this stretch as the road is well-connected with industrial hubs of Sanand and Changodar. As a result, a lot of industrialists and top-ranked executives are buying homes along this stretch. The demand for commercial property is also growing steadily here," said Praveen Bavadiya, an Ahmedabad-based real estate consultant. Industry players stated that the demand for luxury apartments went up significantly since the Covid-19 pandemic and people are seeking out safety, security in addition to various other amenities as they buy homes. "Iscon-Ambli Road is developing as a high-end residential stretch and interestingly, it does not have mixed development. Thus, it is pegged and promoted as a premium locality and projects are getting good response. It has better connectivity with SG highway and SP Ring Road too," said Saket Agrawal, an Ahmedabad-based developer.
Ahmedabad: Iscon-Ambli road is emerging as the next uber posh address in Ahmedabad with a series of swanky and upmarket residential and commercial properties fast coming up in the area. In fact, the high street saw some fast and furious real estate action following the ebbing of second wave of pandemic with the four kilometre stretch from Iscon Crossroads to Bopal Junction recording at least a dozen major land transactions worth Rs 1,500 crore in the past year. Land parcels along the road for which deals were sealed, range from 5,000 to 10,000 square yards and are priced between Rs 1.80 lakh per square yard and Rs 2.70 lakh per square yard. The road is already home to some premium luxury high-rise apartments in addition to upscale commercial and retail complexes and presence of a luxury hotel. It has good proximity to major clubs in the city and has good connectivity to different areas in the city as well as the highway. Dhruv Patel, vice-president, Credai Gihed, said, “Iscon-Ambli road has become the most sought-after pocket for premium residential development. Several leading developers are bullish about launching prospects in this area because demand is very good for ultra-luxurious houses.” Leading developers such as Sun Builders, Swati Builders, Iscon Builders, Sheetal Infrastructure, Palak Group, Sankalp Group etc have invested in land along this stretch over the past one year and have launched or are planning to launch projects soon. “Developers get higher FSI of up to 5.4 along this stretch and therefore, project viability goes up. Moreover, the demand for both residential as well as commercial properties is high along this stretch as the road is well-connected with industrial hubs of Sanand and Changodar. As a result, a lot of industrialists and top-ranked executives are buying homes along this stretch. The demand for commercial property is also growing steadily here,” said Praveen Bavadiya, an Ahmedabad-based real estate consultant. Industry players stated that the demand for luxury apartments went up significantly since the Covid-19 pandemic and people are seeking out safety, security in addition to various other amenities as they buy homes. “Iscon Ambli Road is developing as a high-end residential stretch and interestingly, it does not have mixed development. Thus, it is pegged and promoted as a premium locality and projects are getting good response. It has better connectivity with SG highway and SP Ring Road too,” said Saket Agrawal, an Ahmedabad-based developer.
Ahmedabad: Real Estate developer Arvind Smartspaces Ltd has registered a net profit of Rs 25 crore for the financial year 2021-22 which is 186% higher than Rs 8.7 crore posted in the previous year. Company’s revenue from operations grew by 72% to Rs 257 crore against Rs 149 crore in the previous year. tnn
The Gujarat Real Estate Authority imposed a fine forRs 6 lakh on a real estate firm over its three projects in Gandhinagar not properly mentioning the RERA registration number and its website address.As per the case details, the RERA took up suo motu case against the Kavyaratna group, the promoter of the development projects in Gandhinagar. It came to the notice of the RERA that the group has launched three projects namely Sanskruti, Shrusti and Nakshtra in Gandhinagar. When officials visited the site, the address of the official website was not mentioned on the advertisement hoardings at the spot and the registration number given by RERA was shown in very small fonts. This was deemed as the promoter violating RERA’s circular on the issue and also section 11(2) of RERA Act.RERA bench headed by chairman Amarjit Singh issued a show-cause notice to the builder to explain why fine should not be imposed for violating RERA norms and asked him to remain present on May 10. Smit Patel, promoter of the group, appeared before the bench and assured that henceforth he will take care that such rules are complied with.However, the RERA was not impressed with the assurance and decided to impose a fine. It noted that the highest possible 5% fine of the project cost can be imposed on the promoter in case of such violations. Sanskruti project is worth Rs167 crore, Shrusti Rs102 crore and Nakshtra worth Rs52 crore. “We are not going to impose the highest fine of 5% of the project cost, but a fine of Rs2 lakh for each project is imposed in the case,” the bench noted in its order.The bench clarified that the promoter should deposit the amount of fine from his own pocket and not from the bank account of the project.Meanwhile, RERA experts opined that builders should strictly follow the norms, and at the same time the authority should impose only a symbolic fine. “RERA norms have been introduced by the government to bring accountability and transparency in the real estate sector, and the sector has witnessed tremendous improvement after their introduction. Such a mistake can be a human error done inadvertently and the authority may impose a symbolic fine. Hefty fines needed only in case of serious breaches,” said Mahadev Birla, state president of the RERA Practitioners Welfare Association.
AHMEDABAD: After a two-year long pandemic-induced lull, the commercial real estate market in Ahmedabad has rebounded, propelled by shrinking inventory and increase in demand. According to estimates by GIHED-CREDAI, at least 50 new commercial projects are set to be launched in Ahmedabad over the next four months. This is expected to add at least 80 lakh square feet of commercial space in the city, with investments to the tune of Rs 5,000 crore. Explaining the trend since Covid-19, Tejas Joshi, president, CREDAI-GIHED – Ahmedabad, said, “Soon after the lockdown of 2020, overall demand for the commercial real estate segment took a big hit as an increasing number of people worked from home. Many restaurants and other service industry players shut down retail premises after being hit by the pandemic-induced slowdown. This compelled a lot of developers to convert newly opened commercial projects into residential ones. “However, of late, as the market has staged a bounce back faster after the third wave. With demand for new, spacious office spaces going up, the overall demand for commercial spaces went up, encouraging developers to launch new projects.” In fact, a 41-storey building – which is slated to be Gujarat’s tallest building – will also be a commercial tower. Industry players suggest that demand for both office and retail spaces has gone up. Office spaces of sizes ranging from 500 to 1,500 square feet are in good demand, according to developers. “Commercial real estate saw very less demand for leasing, so office demand declined. However, since the beginning of 2022, office leasing business has picked up since with encouraging transactions. Besides those in the offing, several new commercial projects are at planning stage to meet demand,” said Viral Shah, secretary of CREDAI-GIHED Ahmedabad. One of the reasons for an influx of commercial real estate in the city is also the shrinking inventory. “No commercial spaces were launched soon after Covid-19 pandemic. This led to a shrinkage in available inventory. Of late, the demand has bounced back well from banking sector, fintech firms, pharma and IT industry players as these sectors are witnessing increasing investments. At the same time, demand for large office segments to be converted into coworking spaces or managed working spaces is also seeing greater traction. Moreover, retail space demand has also picked up,” said an Ahmedabad-based developer.
Ahmedabad: After a two-year long pandemic-induced lull, the commercial real estate market in Ahmedabad has rebounded, propelled by shrinking inventory and increase in demand. According to estimates by GIHED-CREDAI, at least 50 new commercial projects are set to be launched in Ahmedabad over the next four months. This is expected to add at least 80 lakh square feet of commercial space in the city, with investments to the tune of Rs 5,000 crore.Explaining the trend since Covid-19, Tejas Joshi, president, CREDAI-GIHED – Ahmedabad, said, “Soon after the lockdown of 2020, overall demand for the commercial real estate segment took a big hit as an increasing number of people worked from home. Many restaurants and other service industry players shut down retail premises after being hit by the pandemic-induced slowdown. This compelled a lot of developers to convert newly opened commercial projects into residential ones.“However, of late, as the market has staged a bounce back faster after the third wave. With demand for new, spacious office spaces going up, the overall demand for commercial spaces went up, encouraging developers to launch new projects.” In fact, a 41-storey building – slated to be Gujarat’s tallest building – will also be a commercial tower. Industry players suggest demand for both office and retail spaces has gone up. Office spaces of sizes ranging from 500 to 1,500 square feet are in good demand, according to developers.“Commercial real estate saw very less demand for leasing, so office demand declined. However, since the beginning of 2022, office leasing business has picked up since with encouraging transactions. Besides those in the offing, several new commercial projects are at planning stage to meet demand,” said Viral Shah, secretary of CREDAI-GIHED Ahmedabad.One of the reasons for an influx of commercial real estate in the city is also the shrinking inventory. “No commercial spaces were launched soon after Covid-19 pandemic. This led to a shrinkage in available inventory. Of late, the demand has bounced back well from banking sector, fintech firms, pharma and IT industry players as these sectors are witnessing increasing investments. At the same time, demand for large office segments to be converted into coworking spaces or managed working spaces is also seeing greater traction. Moreover, retail space demand has also picked up,” said an Ahmedabad-based developer.
AHMEDABAD: In a sign that the Ahmedabad real estate market is clearing the Covid debris, a mega deal has been finalized just 40 days after a similar sale went through. A developer has acquired a 21,000 square yard plot in the Gota area of the city. Market sources peg the deal size to be at Rs 200 crore. A luxury residential building is expected to come up on the plot bought by Shilp Group. In early April, TOI had reported that a plot in Bodakdev was acquired for Rs 250 crore, where a 30-storey residential scheme will come up. Confirming the deal, Yash Brahmbhatt, the chairman of Shilp Group, said: "The deal is set to be closed in a few days after the necessary paperwork is done. We are buying the plot in Gota, which is close to SG Road." Brahmbhatt added: "Premium apartments with 3 BHK and 4 BHK units will soon come up in the locality." Shilp Group plans to build about 300 apartments as part of its scheme. Since the plot has an FSI of 4.0, builders say it can be developed well. The recent opening of flyovers and better connectivity along SG Road has improved the accessibility of areas around the stretch. As a result, the demand and land prices have shot up. Ahmedabad is also going to be the home of the tallest building of the state - a 41-storey commercial project will be launched near Rajpath Club. Commenting on the deal, a real estate consultant said: "SG Road has seen great infrastructure push with the development of bridges. One can travel from Ahmedabad to Gandhinagar within minutes." The consultant added: "Therefore, the entire stretch is seeing good traction in terms of demand for both commercial and residential spaces." The consultant said that over the years, there has been an influx of corporate houses along the stretch from Vaishnodevi Circle to Sarkhej. "This has propelled the demand for residential as well as commercial properties in pockets close to SG Road," the consultant said.
Ahmedabad: City-based real estate developers’ body Credai-Gihed had organized the ground-breaking ceremony of its People’s Park in Shilaj on its 42nd foundation day. Ahmedabad mayor Kirit Parmar, Ahmedabad collector Sandip Sagale, municipal commissioner Lochan Sehra, AMC revenue committee chairman Jainik Vakil and leading developers attended the event on Monday.Tejas Joshi, the president of Credai-Gihed, said: “We want to contribute to society and as part of our CSR activity, we will develop People’s Park.” Joshi added: “The park will be spread over 12,000 metres and will have a 1km walking track, an audio system, CCTV surveillance, and an oxygen park.” He said the development cost will be about Rs 1.50 crore for the garden and it will be ready within a year. tnn
AHMEDABAD: After 33-storeyed buildings becoming almost common in Ahmedabad, the city's skyline is set to get an even taller structure. If all goes to plan, a 41-storeyed commercial building will soon come up near Iskcon Circle on SG Road in Ahmedabad. This will be Gujarat's tallest building, with a height of 145 metres. So far, most buildings with more than 30 floors have been residential projects. Sources said Ahmedabad-based developers Goyal and HN Safal are set to begin this joint project, which will take four years to complete. The 7,000 square yard plot was bought for a record-high price about a year ago by the builders. Goyal Group director Trilok Goyal said, "We plan to develop a 145-metre tall 41-storeyed commercial project on this plot. However, the project is at the finalization stage and once the plans are approved, we will launch it." He declined to comment on the built-up area of the project. On April 27, 2022, TOI had reported that the tallest building on SG Road was in the offing. According to real estate industry sources, SG Road is witnessing strong growth in commercial space development with higher FSI available. "This area will see a number of skyscrapers up in years to come," said a source. This is especially true because the state government introduced special provisions to enable the development of skyscrapers in the five major cities of Gujarat: Ahmedabad, Surat, Vadodara, Rajkot, and Gandhinagar. This will enable buildings with up to 70 storeys to be built. Ahmedabad has already seen residential projects with more than 30 floors after changes to the rules. Now, the tallest commercial project is going to start. "The Ahmedabad skyline will change as taller projects have got good traction from buyers. At the same time, taller commercial buildings will also do well because the city's businesses now have global exposure. However, taller buildings have higher construction costs and completion periods," said an Ahmedabad-based real estate consultant.
As a result of the continued heatwaves, the maximum temperatures in northwest and central India were the highest for the month of April in the last 122 years, the India Meteorological Department (IMD) announced on Saturday.The all India temperatures (maximum and mean) recorded till April 28, 2022, are the fourth highest with 35.05 degrees Celsius in last 122 years.Earlier, March 2022 was the hottest in 122 years for the country, as well as northwest India.The average maximum temperature was 35.90 degrees Celsius and 37.78 degrees Celsius for northwest and central India, respectively, for April 2022.The Department added that temperatures would continue to be above normal also in May.”During May, above normal maximum temperatures are likely over most parts of the west-central and northwest India, and northern parts of northeast India. Normal to below normal maximum temperatures are likely over the remaining parts of the country,” IMD Director general (Meteorology) Mrutyunjay Mohapatra told a media conference.”Normal to below normal minimum temperatures are likely over the south peninsular India and few pockets of extreme northwest India.”Meanwhile, the rainfall in May averaged over the country is most likely to be above normal (more than 109 per cent of the Long Period Average).”The normal to above normal rainfall is likely over most parts of India, except some parts of northwest India and some parts of northeast India as well as extreme southeast Peninsula where it is likely to be below normal,” Mohapatra added.
Ahmedabad: This is one of the most scorching summers of the decade, as the maximum temperature in Ahmedabad breached 44 degrees celsius for the second consecutive day. The highest maximum temperature recorded in the city in April moved higher to 44.4 degrees celsius on Thursday – the highest in at least 10 years. On Wednesday, the maximum temperature was 44.2 degrees.Thursday was also the third day of April with a maximum of 44 degrees or more, which has never happened in the past decade, India Meteorological Department (IMD) officials said.The city was the second hottest weather station in Gujarat after Kandla, which recorded a maximum temperature of 45 degrees. According to the IMD forecast, the maximum temperature in the city will remain about 44 degrees. The effect of the scorching heat was visible on city roads, as major crossroads and junctions were nearly deserted in the afternoon. Citizens who were out sheltered under trees, and stayed hydrated with lots of sugarcane juice, lemonade or buttermilk.EMRI 108 officials that in the past 10 days, the city has recorded a daily average of 238 heat-related emergencies. Hospitals in the city have seen patients trickling in, but the major hospitals such as Civil Hospital and Sola Civil Hospital have not had any heatstroke patients. Experts say this could be due to better people having a better understanding of heat-related issues and not approaching formal medical setups for falls, fainting, dehydration or head and body aches. The heatwave will likely continue in Ahmedabad, Gandhinagar, Surat, Valsad, Rajot, Porbandar and Kutch on Friday. ‘No large change in maximum temperatures during next 4-5 days very likely over region,’ the IMD forecast said.
A five-year-old kindergarten student of Amrit-Jyoti School died on Thursday morning when a garbage dumper of the AMC hit the two-wheeler in which he was travelling. Dahar Bhatt (5) died on the spot after he was flung in the air and then crushed under the wheel of the truck.The child was on his way to school on a two-wheeler driven by his mother Surbhi Bhatt when the incident happened.The woman, a resident of Azad Apartment, Ambawadi was also injured and was admitted to the Jivraj Mehta Hospital. Surbhi later filed a complaint with the M Division Traffic Police. The garbage truck driver fled from the spot.Ronak Bhatt, the father of Dahar, is a real estate agent and used to drop his son to school every day. On Thursday, his mother had to drop him off as Ronak’s father was to be operated on and he was needed at the hospital.Surbhi had reached the Sahjanand College when a speeding garbage truck hit them from the front. Dahar who was standing in the front was crushed by the wheel of the truck after being flung in the air. M Division Traffic PI NS Katakdi said the garbage truck driver was arrested. “Dahar’s mother sustained minor injuries. We have filed FIR under IPC 304A (causing death through negligence) and IPC 279 for rash driving in a public place against driver.”
AHMEDABAD: In the record stamp-duty collection of FY 2021-22, if Gandhinagar has nudged past major cities like Surat and Rajkot which are 10x its size, clocking the second highest mop-up after Ahmedabad, some credit sure goes to GIFT City. After commercial, even residential real estate investments have picked up pace in GIFT City – India’s first international financial services centre (IFSC) in Gandhinagar. According to GIFT City officials, some 55 lakh square feet residential real estate space is coming up in the campus with an investment of Rs 2,700 crore over the next five years. “Several global and domestic companies have started operations in GIFT City with more on cards. This has propelled demand for residential units here, and meeting this demand, developers are coming up with projects in line with walk-to-work concept. This will be a catalyst in accelerating growth of the real estate sector in and around the catchment area,” said Tapan Ray, MD and Group CEO, GIFT City. Prominent Ahmedabad-based developers are eyeing GIFT special economic zone (SEZ) and non-SEZ region for investments. “We have plans to invest at least Rs 1,000 crore here. With a riverfront set to come up near the campus, GIFT city will develop on the lines of Dubai Marina,” said Jaxay Shah, CMD, Savvy Infrastructure. Ahmedabad-based Nila Spaces too will invest Rs 300 crore for a residential project. “We plan to construct 500 homes ranging from studio apartments to three-bedroom apartments. There is huge potential for residential development here,” said Deep Vadodaria, director of the firm. “GIFT City is emerging as a financial centre at a global level and with multinational corporations investing here, the demand for residential real estate will remain,” said Chitrak Shah, director, Shivalik Group, as he prepares to launch a project in the campus. Buyers from metro cities of India are lured into investing here. “With many professionals working in companies operating here, developers are bullish about demand for residential properties. We see inquiries pouring in from metro cities and non-resident Indians,” said Jay Deliwala, director of a city-based property consulting firm. With increase in investments into GIFT City, Gandhinagar is emerging as one of the fast-growing hubs for residential and commercial real estate. After Ahmedabad and Vadodara, it is the third major city clocking yearly growth in new project launches, according to data available on Gujarat Real Estate Regulatory Authority (GujRera) platform. “Gandhinagar itself is developed and closer to Ahmedabad due to which the demand is good. Plotted schemes and bungalow schemes have flourished well here due to well-planned town planning schemes. GIFT City along with other migrant populations settling in the city has given rise to this development,” said Ajay Patel, chairman, CREDAI – Gujarat.
Ahmedabad: Buoyed by improved demand and intensified commercial activity, Ahmedabad has registered a 165% growth in office space transactions during the first quarter of 2022 as compared to the previous corresponding quarter, suggests a report by Knight Frank India. In fact, the report also says that the city has registered the highest ever growth among seven others across India, for commercial real estate transactions.The Covid lockdown had impacted the commercial real estate segment the worst with many companies going for the work-from-home option. However, the economy has improved faster than expected and it has resulted in higher demand for office space in the city, according to the report.During the quarter, Ahmedabad saw a whopping 165% increase in the sale of office spaces up from 0.2 million square feet (msf) during the January-March 2021 period to about 0.5 msf. This is the highest increase among the eight major cities of the country, the report states. However, rentals remained unchanged in the city at Rs 40.2 per square feet on average.Sharvil Shridhar, a city-based developer, said: “Inquiries for commercial spaces remained good in the last quarter. The IT/ ITes policy is also a factor in the increase in office space demand.” Shridhar added: “The demand for retail spaces is also gaining momentum.” He went on to say: “We believe commercial space will boom because the number of new launches have decreased over the past two years and fuelled by demand, it will soon begin picking up pace again.”Shishir Baijal, CMD, Knight Frank India, said: “The country has returned to normality backed by a strong vaccination drive that has given India Inc. confidence.” Baijal added: “We expect the office segment to return to its pre-Covid momentum in the next few quarters as the Indian economy continues to strengthen.” He went on to say: “The significant increase in hiring and the pent-up demand of the past 8 quarters are expected to drive market volumes in the remainder of the year.”
GANDHINAGAR: Reversing the two-year trend of falling revenues from stamp duty and registration of property documents, the state government recorded an impressive 43% increase in stamp duty in the financial year ended March 31, 2022, as compared to last year, heralding a solid bounce back in the real estate market. There has also been a 25% increase in number of sale deeds executed in 2021-22 compared to 2020-21. In the financial year 2021-2022, state government collected Rs 10,606 crore in stamp duty. Stamp duty revenue for 2018-19, 2019-20 and 2020-21 was Rs 7,781 crore, Rs 7,701 crore and Rs 7,390 crore, respectively. Compared to 2020-21, stamp duty in 2021-22 increased by more than Rs 3,000 crore. Despite the impact of Covid-19 in the first half of 2021-22, property registrations stood at 14.3 lakh, almost 3 lakh more than in the previous year. In 2018-19, 2019-20 and 2020-21, the number of property registrations in Gujarat was 12.4 lakh, 12 lakh and 11.4 lakh, respectively. In the financial year 2021-22, the highest revenue from stamp duty and registration was registered in Ahmedabad (Rs 3,398 crore), followed by Gandhinagar (Rs 2,513 crore), Surat (Rs 1,212 crore) and Rajkot (Rs 595 crore). Gandhinagar registered the second-highest revenue numbers because of rapid urbanization. Industry players said record levels of revenue from stamp duty in the past financial year signal that the real estate sector has recovered from the negative impact of the pandemic. Ajay Patel, chairman of the Gujarat chapter of the Confederation of Real Estate Developers' Associations of India (Credai), said, "There are multiple reasons behind higher sales. Lower housing loan interest rates have encouraged people to buy homes in a big way. Post lockdown, people felt the need to invest in bigger houses pushing demand." "The real estate market is also on upswing following the influx of migrants from other states into Gujarat, a manufacturing hub of India, and revival of investment by NRIs post second wave of Covid. All these factors combined have helped the real estate sector," Patel added. (With inputs from Parag Dave)
AHMEDABAD: Anticipating increase in prices from April, combined with a bullish consumer sentiment, residential real estate market remained upbeat in Ahmedabad in the first quarter of 2022. According to the latest report by Knight Frank India, residential real estate sales rose 35% in the January to March quarter from 3,045 units to 4,105 units. The report ‘India Real Estate-Q1 2022’ tracks developments in India’s top eight cities. “The market has shown steady sale growth recently. A rise of 35% in sales reflects the revival of home buyers’ interest,” states the report. To meet growing demand, new launches also took place with a 25% increase during the said period. Developers suggest that new bookings can be attributed to the revival of market sentiment backed by the quest for better homes. Besides, a lot of deals were closed following an announcement of surge in property prices. Ajay Patel, chairman, CREDAI-Gujarat, said, “Houses in Ahmedabad are much more affordable compared to other Indian cities. People from all over the country come to work here. A demography with disposable income in addition to new schemes offering affordable and luxury houses has propelled the demand for new properties.” Industry players also attribute the growth to lower bank interest rates too. “The government is launching new TP schemes, adding road and water infrastructure. This has led to an increase in real estate projects. Besides, interest rates on home loans are low, further propelling demand,” Patel further said. Developers suggest that in Ahmedabad, the luxury real estate segment is picking up in a big way and a lot of high-end properties coming along Bopal-Ambli Road.
The first quarter of 2022 has seen sales of residential units in Ahmedabad grow by 34% year-on-year with sales of 4,105 units recorded from January to March, according to the latest market assessment report by Knight Frank. Countrywide, sales have achieved a four-year high of 78,627 residential units sold despite the third wave.The Knight Frank’s report called ‘India Real Estate – Q1 2022’ tracks developments in India’s top eight cities of Mumbai, Delhi-NCR, Pune, Ahmedabad, Bengaluru, Hyderabad, Kolkata and Chennai.As per the report, in the first quarter of 2022, 78,627 new homes were sold across the top eight cities in India, which were higher by 9 percent YoY as against Q1, 2021.For Ahmedabad’s real estate market, the international consultancy’s report shows a steady improvement as the residential segment recorded launches of 4,957 new homes, a rise of 25% Q1 of 2022. Even sales for Q1 were recorded at 4,105 units, a rise of 35% which reflects the improving sentiments in the market, said the report. Correspondingly, property prices too have grown 3% during the quarter due to rise in input costs.Speaking on Ahmedabad realty market, Knight Frank director (research) Vivek Rathi said, “Of the total sales, 62% of the properties were below Rs 50 lakh, 29% were between Rs 50 lakh and Rs 1 cr and about 10% were from the high bracket of Rs 1 crore to Rs 3.5 crore.”Rathi said, “In terms of units sold, the numbers might indicate that Ahmedabad is behind, but in terms of YoY growth it is ahead of many other cities.” The report stated the new property launches in Q1 were 78,171 units in the eight big cities. Of these, Ahmedabad had a share of 4,957 units, compared to 3,977 units that were launched in Q1 of 2021.Chairman and MD of Knight Frank India, Shishir Baijal, said, “Low interest rates, best affordability levels, healthy wage growth and the waning pandemic with lower risk of further disruptions have created a favorable environment for homebuyers who have rediscovered the need for new and better housing.”He said, “While financial stress remains a significant factor for developers across markets, healthy and sustained homebuyer activity should pave the way for gradual price increases and enable them to tide over the rise in costs of critical inputs like cement and steel.”The report also stated that Mumbai, which remained the largest market by volume, saw sales of 21,548 new units in Q1 2022, registering a -9% YoY decline. Delhi-NCR sales grew the most at 123% YoY to 15,019 new homes in the first 3 months of the year, making it the second largest market by volume.Bengaluru, which was the third largest residential market by sales volume, also registered a YoY growth of 34% in Q1 2022, with sales of 13,663 new units between January and March 2022.
In a relief to property buyers, RERA has ordered that builders cannot collect maintenance deposit or advance maintenance from allottees of units before getting BU permission. RERA recently issued guidelines for funds for common services’ maintenance and necessary repair works of real estate projects.The regulatory authority has made it clear that maintenance deposit or advance maintenance can be taken only in the final stage of the project after the BU permission is obtained. This amount is to be used for common amenities and the promoters’ role can be considered as that of a trustee.RERA has received many complaints about projects implemented in 2017 in which fees collected by developers as maintenance deposit or advance maintenance are not transferred properly to the associations. According to article 84 of Real Estate Act 2016, the state government published Rule 9 on 4-5-2017 which has a provision of “construction-linked payment schedule” under “Model Agreement for Sale”. It says that the amount can be collected only after the project gets BU permission.According to rules and regulations issued by RERA, the maintenance deposit amount cannot be used by the promoter for construction of the project, it has instead to be deposited in a separate bank account which is managed by the allottees in future. The money collected for this purpose should not be in cash but in the form of cheque, demand draft or e-payment. This will bring transparency and help settle any disputes between the developer and allottee. The interest earned on this amount will be considered as corpus fund of the allottees. All the expenses for common services and amenities after the BU permission is obtained will be carried out by the consent of the representatives of the allottees as per section 11 ( 4 ) ( A ).The guidelines further state that the developer is responsible for the maintenance until the project gets BU permission. If the developer withdraws money from the funds before the BU is given, then the amount is to be deposited in the maintenance account of the society along with the interest.Inform RERA aboutconversion of common areaAs per the section 17 of RERA Act, an association of allottees has to be formed with regards to any conversion of the common area of a project. This has to be done within three months of the project getting BU permission, and RERA has to be informed about it. Also, while handing over the common services/amenities to the association of allottees, the developer has to give audited accounts and the balance should be immediately transferred to the bank accounts of the society members.‘Maintenance money spent by developer’RERA receives many complaints about money collected in the name of advance maintenance being spent by the developer and not transferred to the association. In a majority of cases, the funds are used for maintenance and repairing of amenities during the construction. The association is not registered in a timely manner. RERA sources said the guidelines will help buyers know about their rights. Buyers can also file a complaint in case of any violation of the rules.
Ahmedabad: In what is pegged to be the most expensive land deal in the Bodakdev area of Ahmedabad, the sale of a 10,000 square yard plot in the area was closed recently for a whopping Rs 250 crore or Rs 2.5 lakh a square yard, according to sources in the real estate industry. The plot was bought by Madhav Group. Real estate sector sources said this is the biggest land deal in Ahmedabad this year.Amit Patel, the principal promoter of Madhav Group, said, “We recently bought this plot and plan to launch a residential project on it. We will build a 30-32 storey residential building with about 260 apartments.” Patel, however, did not disclose the land deal size. Patel said that the cost of the project will be around Rs 350 crore. Industry sources say a land deal of this size has been reported in the city after a long time and has created a buzz.Market sources say the plot in question is along a 36-metre road and has allowable FSI of 4.An Ahmedabad-based real estate consultant said, “Even though plotting schemes were high in demand, there were no major land deals in Ahmedabad since Diwali. A sizeable deal reflects rising interest among developers to launch new projects along transit corridors, which typically provide higher FSI.”“Moreover, demand for high-end residential real estate has increased in Ahmedabad, especially after the pandemic, because people are looking for bigger, more spacious homes to upgrade to. In the coming days, we may see many redevelopment projects being implemented. Developers may seal buy-out deals with old residential societies, owing to the scarcity of available land in Ahmedabad,” the consultant added.
AHMEDABAD: Expedited approvals from the state government led to a good March closing for most developers in Ahmedabad and Gandhinagar. According to estimates by the Confederation of Real Estate Developers’ Association of India (CREDAI), affordable housing projects worth Rs 1.5 lakh crore were approved in less than a month in the two cities. With quicker approvals, developers coming up with some 275 projects will be able to avail benefits of Section 80 IBA of the Income-Tax Act (ITA), under which developers get 100% tax exemption on profit. The Ahmedabad chapter of the developers’ body had recently approached chief minister Bhupendra Patel to get quick approvals for affordable housing projects before the 80 IBA benefits lapsed. The section 80 IBA of the I-T act was introduced to encourage affordable housing so that developers passed on the benefit to customers. “This benefit was not extended in the budget this year and the last day to avail it was March 31. We met the CM on March 2 and he assured us that approvals for such projects will be expedited. The CM asked top officers to instruct all corporations and urban development authorities to clear all the files received before March 15 through the green channel,” said Tejas Joshi, president, CREDAI, Ahmedabad. “In less than a month, plans for more than 275 affordable housing projects have been passed in the Ahmedabad Municipal Corporation, AUDA, and Gandhinagar. These projects will result in more than 35,000 new houses,” Joshi said. Industry players said it takes about two months to pass the plan. However, with expedited approvals, builders may get benefits of around 7% which can be passed on to customers. As builders are set to increase the price by Rs 300-500 per square feet from April 2, this relief can be significant for buyers.
Ahmedabad: On the occasion of Rajasthan Foundation Day, Rajasthan BJP chief Satish Poonia met industrialists of Rajasthan origins in Ahmedabad on Wednesday. Industrialists from different sectors like textiles, chemicals, food processing, real estate met Poonia. “Rajasthan and Gujarat have strong social and economic bonding and one can see the culture of Rajasthan in many parts of Gujarat. People from Rajasthan have contributed to Gujarat’s economic growth,” Poonia said in his address. Former Gujarat home minister for state Pradipsinh Jadeja and many Rajasthan BJP leaders also attended the meeting. Later in the day, Gujarat chief minister Bhupendra Patel attended Rajasthan Foundation day event at Vastrapur. Union minister Gajendrasingh Shekhawat and Satish Poonia and other BJP leaders attended the event. An award ceremony was also organised on the occasion. Textile industrialist P R Kankariya was honoured with Rajasthan Gaurav Award for his contribution in industry while Hanumanprasad Gupta got the award for trade category. Shital Agrawal was awarded for education, Dr Mahaveer Golechha for science, Meera Ramnivas for literature, Dr Dinesh Saini for health and Sudha Kabra got the award in women category.
AHMEDABAD: Planning to buy a house? Now may be the right time to get the best price for your dream home! In the wake of constantly increasing raw material prices, mainly steel and cement, developers have announced that an increase of Rs 400-500 per square foot is on the cards. The announcement was made by Credai Gujarat members and will be applicable across about 40 city chapters of the developers' body. The decision was taken during the board meeting of Credai Gujarat held in Palanpur on Tuesday. Raw material prices have been the bane of real estate developers for a while now. Ajay Patel, chairman, Credai Gujarat, said: "Prices of steel and cement have dramatically increased because of which the profitability of developers is being eroded significantly." Patel added: "So far, most developers have absorbed costs but with the constant surge in prices, input costs are increasing." Patel went on to say: "Therefore, prices of properties will go up effective April 2, be it commercial or residential, across Gujarat." Developers suggest that besides steel and cement, prices of hardware, glass panels and other raw materials have also gone up substantially. While steel prices have touched Rs 80,500 per tonne, cement costs Rs 430 per bag, adding to the costs of construction in ongoing projects. Steel prices hovered around Rs 60,000 per tonne in December-end whereas cement cost Rs 325 per bag in the same period. Surging steel and cement prices have also impacted construction contractors. Gujarat Contractors' Association (GCA) had a long-pending demand of the government to revise project costs in line with rising prices. Heeding their representation, the state government recently allowed a rise in prices of properties up to a ceiling of 5% in accordance with the surge in raw material costs.