The real estate market in Gujarat International Finance-Tec City, India’s first smart city, is experiencing an unparalleled surge. The GIFT Authorities have decided to set aside more land in order to build 5,000 residential apartments as a result of this. Bidding is currently underway for a tender to build residential infrastructure on 1.2 million square feet of this additional land.
In the last few months, there has been a sharp increase in GIFT City residential apartment prices of between 30% and 35%. The residential real estate developers in GIFT stated that they have been able to sell between 70 and 80 percent of their inventory before the projects are finished, even with the price increase. Furthermore, the developers claim that because potential buyers are willing to pay more for the cutting-edge infrastructure being built in GIFT City, the returns on investments in the city may exceed those of real estate projects in other regions of the nation.
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Managing Director of Shivalik Group Taral Shah stated, “Investors are bullish about the future prospects of GIFT City,” in reference to the real estate industry’s outlook in GIFT City. Investors are showing a strong interest in GIFT City, not only from within the state but also from outside the country. These investors are from Delhi, Mumbai, and other South Indian states. GIFT will be a more appealing location than any other area in the nation due to the single window clearance, ease of doing business, and city-provided infrastructure.
Deep Vadodaria, Director, Nila spaces, developing residential as well as commercial projects at GIFT City, said, “In the span of 15 months the prices for Nila’s residential project, VIDA Project, has touched Rs 18,000 per sq ft from Rs 12,500 per sq ft when they launched, a 30% hike.” Nila Spaces has been able to sell out around 70% of our total units in advance. The VIDA Project includes Studios, 1BHK, 2BHK and 3BHK apartments and the price range is between Rs 87.50 lakh (for a Studio) to Rs 2.15 crore (for a 3BHK).
“Shivalik Group has sold more than 80% of our units in the residential project named ‘Skyview’ at GIFT City,” added Taral Shah of the Shivalik Group. The prices were Rs 5,500 per square foot when we first began taking reservations, and they are currently Rs 7,500 per square foot. Good products are in high demand, and we’ve been able to sell about 360 of the 420 units we have in “Skyview.”
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“To compare GIFT with other regions around Ahmedabad and Gandhinagar, it must be kept in mind that similar to other market pockets like Gota, Shilaj, ISKON, and Vaishnodevi, GIFT also is a micro market in the macro real estate market,” real estate analyst Nagendra Singh Rathore stated. It is a focus because it is a government project with government incentives. In addition, the majority of the residential projects in GIFT are bought as investments because their prices are rising more quickly than those of pure residential products, which end users purchase for their own use. This explains why GIFT’s price has increased significantly in comparison to other micromarkets where it spiked between 15% and 18%.
“GIFT City will undoubtedly rank among the most profitable real estate investment opportunities in the long run, given its acceptance as a viable investment option and the current political and government support,” stated Rathore.
GIFT is proud to have its own captive power plant, central air conditioning unit, simple payment facilities, sewage management system, unified garbage collection system, and common utility tunnel, among other cutting edge infrastructure features. These are just a few of the main services provided to the city’s businesses and residents. In order to support citizens’ ability to maintain a strong social life, the city’s authorities also intend to develop a thriving social infrastructure.
On the other hand, a real estate analyst who wished to remain anonymous issued the following warning: “While the long-term outlook for GIFT City’s social infrastructure is very optimistic, the challenge lies in the present.” As for social life, GIFT City currently only has a school and a club. Only after people move in can the true growth potential be evaluated.
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The significant cost disparity between residential developments inside and outside of GIFT City presents another difficulty. For instance, apartments on the nearby Knowledge Corridor road, which is close to GIFT, are available for between Rs 4,000 and Rs 4,500 per square foot. It remains to be seen in this instance whether the expensive properties at GIFT will be able to provide their investors with sufficient returns, he continued.
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