Realty prices in posh areas of Ahmedabad are continuously hitting new highs. This has been proved recently in a plot deal on SG Road. The deal for a 4000 yard plot on SG Road has been done at the rate of Rs 3.25 lakh per square yard. Sources related to this matter say that this is the most expensive realty deal so far in Ahmedabad.
This plot of about 4000 square yards is located between ISKCON Circle and Prahladnagar. The investor who purchased this plot has started talks with a developer. There is a possibility of them forming a joint venture here. This is the first big deal in Ahmedabad after the implementation of higher Jantri rates in April.
According to sources, the deal for this plot on SG Road was signed about a fortnight ago and its payment is likely to be completed in the coming months. Earlier, a plot deal was also done on ISKCON-Ambli Road, when a record price of Rs 3.11 lakh per yard was received. After this, a farm near ISKCON Circle was sold for Rs 3 lakh per yard.
A realty sector consultant said some big land deals have taken place in Ahmedabad on the outskirts of the city. Vaishnodevi Circle and Sheelaj also have some joint venture deals in place.
However, experts in the real estate sector also believe that since land prices have increased so much, there are concerns about the sustainability of the project. Land has become extremely expensive in the last decade, but ready property prices are not so high. Apart from this, the cost of construction has also increased significantly which has affected the margins of developers. There have been some high priced deals recently which have created difficulties for developers getting started.
A realty consultant said the overall real estate market has been slow for the last three months and sales have been affected due to rising interest rates. However, with the positive environment for infrastructure development and economic growth in Ahmedabad, developers are taking calculated risks. Especially on SG Road, there are very few plots now, due to which the real estate prices here remain high. Recently, big real estate deals in Ahmedabad have also taken place near this road.
Redevelopment plans of societies have gained momentum in the real estate market of Ahmedabad after the sharp increase in Jantri rates in Gujarat. There has been a significant increase in redevelopment of societies less than 25 years old. After the increase in Jantri rates, the picture has become clear and developers interested in the project are coming forward. Realty insiders say that in the last three months, around 30 redevelopment deals have been done in Ahmedabad and more than 500 societies are in talks with developers. After the increase in Jantri rates, there is talk of a fresh offer.
Importantly, even societies which are only 15 to 20 years old are in talks with builders for redevelopment. However, developers say redevelopment of most such societies is unattainable due to FSI issues.
After the hike in Jantri rates, the cost of FSI has skyrocketed and redevelopment projects cannot be undertaken. About 90 percent of the redevelopment projects previously discussed have been canceled. After the increase in Jantri rates, developers changed their offers. They provided less built up areas and incentives to societies. Property owners are now accepting these offers.
Jitendra Shah, president of the Urban Redevelopment Housing Society Welfare Association, said the redevelopment deal stalled after the Jantri rate hike as the offer was not affordable due to the increased FSI cost. However, there is now a renewed interest in redevelopment as many older societies require it. In the last three months, around 30 societies have finalized deals and around 500 societies are in the final stages of negotiations with developers.
Many societies less than 25 years old in Vejalpur, Bhopal and Chandlodiya are in touch with builders for redevelopment. However, FSI restrictions are loose.
Jigar Bharwad, director of Yashasvi Group, which is involved in the redevelopment project, said that many societies which are less than 25 years old want redevelopment. Its residents have approached builders for redevelopment. But most of the societies already use around 2.5 FSI and currently only 2.7 can be used. Therefore such projects cannot be implemented. Societies falling in transit oriented areas can get FSI up to 4. But such societies are very few.
Two land deals have taken place in the Bhopal-Ambli Road area in Ahmedabad, in which a total of 12,000 plots have been sold for more than Rs 350 crore: Commercial projects ranging from 13 to 21 floors will be launched here.
Ahmedabad. 17: The government in Gujarat has recently increased Jantri rates drastically, but land deals have not been affected. Land deals in Ahmedabad are happening like before and the prices are also not high. Recently, two land deals have been done on Bhopal-Ambli belt, in which the price of land has been estimated at Rs 3 lakh per yard. Two plots of 6,000 square meters each on the Bhopal-Ambli belt have been sold at a deal price of around Rs 180 crore. The deal has been done by NH Sufal and Palak Group where the commercial project will be developed.
Recently the deal of Keshavbag plot in Satellite was done for Rs 20 thousand. A record price of Rs 2.95 lakh was quoted. Both latest deals yielded even higher prices. This is what Times of India says.
Currently the Bhopal-Ambli road belt in Ahmedabad is considered to be the hottest location for real estate deals. Recently two deals of 12,000 square meters have been signed, the total value of which is around Rs 350 crore. Market sources said that the price of land in both the deals has been estimated at around Rs 3 lakh each. Both these plots are approximately 6 thousand times.
NH Safal and Palak Group bought these plots in separate deals. They want to build a retail cum office space building here because there is a huge demand for commercial property on Bhopal-Ambli Road. BRTS corridor has been formed in this area. This has increased its importance for realty developers. After the completion of this project, its total cost is estimated to be more than Rs 700 crore.
Realtors say that at present the price of office space in this area is Rs 7000 per square foot. While retail space on ground floor and first floor is priced at Rs. Rs 15,000 to 20,000 per square feet. Prices may vary depending on project and location.
Deep Vora, director of HN Safal, has confirmed the land deal and said that he has purchased a plot. He said that we want to build a 13-storey commercial building here which will have both retail and office space. However, he did not say anything clearly about the price of the plot.
Talking about the business prospects in Bhopal Ambli area, Jayesh Patel of Palak Group said that we have recently completed a retail-cum-office project here. Seeing the possibilities of this area, he has purchased another plot of 6000 square meters. Due to the FSI available in this area, they can build more floors. They want to build a 21-storey building here. In the coming days, construction work of 50 lakh square feet is going to be done in Bhopal-Ambli road belt. Six to eight commercial projects are currently under construction from ISKCON Char Road to SP Ring Road.
The boom in the real estate sector since the Corona period still continues. Amid rising property prices, a plot in Ahmedabad has been sold at the highest ever recorded price. Located S.G. A 4000 square meter plot located between ISKCON Circle and Prahlad Nagar on the highway was once sold for Rs 3.25 lakh. This is the most expensive land deal in Ahmedabad.
Sources in the real estate sector said that this is the biggest deal in the state after the Jantri increase. The investor and the developer purchasing the land will jointly launch the project.
The land deal was finalized about a fortnight ago and the payment process will be completed in the next few months.
Earlier, plots at ISKCON Ambli Road were sold for Rs 3.11 lakh per item and plots near ISKCON Circle were sold for Rs 3 lakh per item, which was a record price. Now a new record has been made.
A well-known developer from Ahmedabad said that several land deals have taken place in some parts of Ahmedabad in recent times. Additionally, joint venture projects have been announced in Vaishnodevi Circle and Shilaj. Now new projects are becoming difficult due to the high price of land. Because developers taking up high land are finding it difficult to get adequate response to the high cost of the project.
The prices of land based readymade properties have not increased. Apart from land, construction costs are also skyrocketing, putting pressure on builders’ margins. Builders also faced initial difficulties in some expensive projects.
According to builder lobby, the real estate market has slowed down for the last 3-4 months due to rising rents and high interest rates, but calculated risks are being taken to target future potential growth and opportunities. Located S.G. As far as the highway is concerned, land for sale is scarce, so prices there may remain high.