The rise of retail and its influence on the Ahmedabad realty market
India’s retail revolution is gaining momentum in the country’s smaller cities. After years of opening stores in large cities and paying hefty rents, brands and mall developers are increasingly investing more in smaller cities, as lower rentals, experiments with new leasing formats, and aspirational shoppers drive growth in these markets, according to real-estate consultancy JLL India.
Buoyed by excellent infrastructure, fast-growing per capita expenditure and consumption, and the increasing number of migrants from many parts of the country because of its tremendous job opportunities, Ahmedabad has seen a significant shift across all real estate sectors in recent years, especially in the retail sector.
The retail boom and its impact on Ahmedabad’s real estate
Real estate developers from Mumbai and even Delhi-NCR are increasingly coming up with the best of residential projects in Ahmedabad.
While expat influence is a known reality of the Indian property market with expats emerging as a key home buyer, Ahmedabad is today witnessing another set of expat influence – that of developers.
The developers have their reasons as well. Some find the land prices attractive at this level, while the others find the approval mechanism conducive; Some are driven by the Gujarat growth story, others are goaded by the political reasons. But among all factors, Ahmedabad is a text-book case of a retail boom.
As of 2014, approximately 70 million square feet of residential real estate space has been built in Ahmedabad, of which the Western part of the city will account for 47 percent, followed by 19 percent in the Southern part and 17 percent each in the Northern and Eastern parts of Ahmedabad.
As a result of growing infrastructural and commercial activities, few areas have become hot cakes for residential projects in Ahmedabad, like South Bopal, Bodakdev, Chandkheda, Prahaladnagar, SG Highway, etc. The cost of a 2BHK in Ahmedabad starts approximately above 25 lacs and goes up to 45 lacs in these prime areas. Flats in Ahmedabad are gaining popularity primarily due to commercial activities around their locality, and also their excellent amenities, connectivity and power supply.
What the future holds
Plans for high-speed rail connectivity between Ahmedabad, Mumbai and Pune are now being discussed, along with the Vadodara-Mumbai Expressway. This holds the promise of even faster growth in industrial strength, as well as in all other real estate verticals.
The Western part of Ahmedabad is emerging strongly, and it will continue to gain momentum in the future. Locations such as South Bopal, Ghuma, Shella and Shilaj are definitely on the watch list. Towards the north, Koteshwar has come up as the new centre of growth after Chandkheda. Similarly, the East and South have seen development along the SP Ring Road.