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The real estate market of Gujarat across its cities is generally considered to be stable. There are 6 smart cities in Gujarat which includes Ahmedabad, Surat, Vadodara, Gandhinagar, Rajkot, and Dahod. As these smart cities are being gradually equipped with advanced infrastructure, the real estate too is seeing an upward trajectory in these cities.
In addition, Gujarat government has been actively promoting the state as a destination for investment attracting domestic and foreign business and industries. This is also leading to more traction for quality real estate across residential and commercial segments. No wonder, Gujarat is seen as a good option for real estate investment, with potential short term and long-term gains.
THE ECONOMICS OF IT
Gujarat, is poised to grow at 15.5 per cent during the current fiscal and is predicted to almost double its Gross State Domestic Product (GSDP) in the next five years, states data tabled along with the annual budget for financial year 2023-24.
The state has witnessed unprecedented growth in terms of investments, both FDI and domestic. The New Gujarat Industrial Policy 2020 is being introduced with added focus on key thrust sectors of integrated value chains and to strengthen MSMEs and facilitate cluster development.
Gujarat has India’s first SEZ for International financial services, Gujarat International Finance Tech City or GIFT city which is attracting interests from many domestic and global corporations. Gujarat is rigorously inviting industries from different states to come and set up their plants.
THRUST ON INFRA & REALTY
The state government is emphasizing on infrastructure development and rightly so. In fact, Gujarat is the first state in the country to enact a legal framework for PPP in infrastructure sector. And for real estate, the Gujarat RERA has been a boon for buyers and developers alike.
A number of other factors work in favour of the Gujarat real estate’s success story. Most importantly, the purchase affordability of property as the capital value for the land remains significantly lower than other fast-developing states. Well-structured interstate and intrastate connectivity adds to the commercial values. Additionally, the Gujarat government has taken several initiatives to promote the real estate sector in the state.
The government has implemented policies to simplify the process of obtaining permits and licenses for construction projects, which has resulted in faster approvals and reduced bureaucratic hurdles for developers.
The government has also introduced several incentives to attract investors, including tax breaks for real estate projects in certain areas and subsidies for affordable housing projects. These policies have contributed to a positive investment climate in the state and have encouraged more developers to invest in the Gujarat real estate market.
WITH GROWTH COMES CHALLENGES
On the back of the mentioned positive factors, the realty market in Gujarat is growing and is proving to be a promising sector. One of the unique features of the real estate market in Gujarat is the retaining of traditional architectural elements. Many developers are incorporating traditional building styles and designs. This has resulted in a blend of modern amenities and old-world charm, creating a unique selling point for many properties in the state.
Overall, the real estate market in Gujarat offers a wide range of options for buyers and investors, from traditional to modern developments. Whether you are looking for a apartment in a high-rise building or a traditional bungalow with a courtyard, Gujarat has something to offer to everyone’s taste and budgets.
But there are certain hiccups too. The hike in Jantri rates this year will affect transferable development rights (TDR) purchase, FSI purchase and land premiums which will dampen the buyer’s sentiments. However the recent concessions announced by the state government do offer a ray of hope. Overall, the progressive policies and fast-track reforms show an assuring future for real estate investments.
IN INDIA, ALTHOUGH THE HOT REAL ESTATE INVESTMENT LOCATIONS ARE METRO CITIES LIKE BANGALORE, MUMBAI, DELHI, ETC. BUT THERE’S A DARK HORSE IN THIS RACE WHICH HAS SLOWLY EMERGED AS ONE OF THE LEADING INVESTMENT OPTIONS - GUJARAT.
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