PropertiesMagazine.com Real Estate Blog

Neha Chawla




Ahmadabad, the capital city of Gujarat, is emerging as a hotspot real estate destination. According to a survey conducted by Indicus Analytics, it is among the top ten alpha cities in India where one can reside, earn and invest. Because of its close proximity to commercial capital of the country i.e. Mumbai, it can easily access western and Middle East markets. The city has come up with many new shopping malls, multiplexes and skyscrapers, healthcares. Besides that, the city is witnessing a major construction boom.

 

Residential areas like Sabarmati, Vastrauram, Satellite, Ambavadi and Chandkhera are in great demand. Commercial areas like C.G road, S.G highway Satellite, Vastrapur etc, because of their prime location, boast of high real estate sales. The residential rentals also peaked 2007 but in last six months, due to economic slowdown, they have come down by 25 percent. So, situation now is favorable for tenants as they can bargain more and can ask for discounts looking at the current market scenario. Mr. Bhatia, a real estate consultant, has told his clients not to let go their existing tenants otherwise it would be difficult for them to find new tenants at this point of time.

 

The rental values for 2- BHK are steady as there are not too many 2-BHK apartments in the city. The rental price for 2 BHK range from Rs.5000-7000 per month where as for a fully furnished two BHK in prime location, the rental price is Rs.7000-17000 per month. In other segments, monthly rentals are declining but rental prices for 2-BHK are still holding firm. The rental prices for 1BHK costs between Rs.6000-8000 per month and 3-BHK rentals costs starts from Rs.12000 and Rs.15000 to Rs.1,00,000 in case of a fully furnished apartment.

 

Government of Gujarat is laying more emphasis on building privatizing ports, integrated townships, big way, technology parks, and education-based townships, medical and healthcare townships, tourism-related townships, Logistics Park and residential townships. Because of infrastructure development, the overall development of the city has lead into boasting of real estate sales. Also, other factors like metro rail planning in the city and NH-8 highway connecting Delhi to Mumbai passing through Ahmadabad and upgrading the highway under BOT(built ,operate and transfer) has also lead to improved its connectivity with neighboring states thus increasing Ahmadabad property sales.

 

The upcoming sectors in Ahmadabad real estate are retail and IT/ITES as many MNCs have shifted to the city and thus demand for residential and commercial property is increasing. Many builders and developers are coming up with new projects in the city – Adani group is planning to come up with Mega Township near Nirma University with overall cost of project to be estimated about Rs. 2000 crore plus on SG highway. Heritage group is also planning to come up with all kinds of projects including bungalows, farmhouses and service apartments. Moreover, the prices of property in Ahmadabad are reasonable and quiet affordable as compared to other tier-II cities and the realty market is quite stable and has not suffered much due to the economic slowdown.

Neha Chawla




Lucknow, the capital city of Utter Pradesh, is also known as “City of Nawabs”. The city has rich architectural heritage and great historical significance. It is emerging as hottest real estate destination. India’s major builders and developers like Omaxe, Ansal, Sahara and Uppal Group are planning to come up with new townships in outer skirts of the city like Gomti Nagar, Meera Nagar and Naya Hyderabad.

 

According to a report, Omaxe Group’s subsidiary has entered into an agreement with Lucknow development authority for developing new township in the city. Garv Buildtech Private Ltd, which is a subsidiary of Omaxe, has signed a memorandum for developing this township in the city. This new township is estimated to cater Rs.2, 800 crore revenue and will take around five to seven years to complete. Another project by Sahara City Homes, which begun in starting of this year will have 30 blocks and these 30 blocks will house 1620 residential units. Beside this Eldeco is coming up with Eldeco Town on Sitapur road. This 200 crore project will have apartments in the range of Rs 20 – Rs 50 Lakhs. Also, other builders like Omaxe, Ansals, Parasvnath, and Rohtas are coming up with their new residential projects in Lucknow.

 

The development of suburbs of Lucknow has boosted real estate sales a lot. Gomti Nagar, an IT hub. It has come up with new multiplexes, malls like Eastern Mall, Fun Republic Mall. The city is witnessing development also because of many government offices like Bank of India, and PICUP etc and many plush offices complexes have come up in the locality. Thus, people are looking for residential property in Lucknow and its suburbs to settle down which has led to an increase in the demand for homes. Also, neighboring areas like Indiranagar is witnessing great demand in retail properties as a result demand for commercial property is also increasing.

 

As far as commercial development is concerned, many builders have lined up retail showrooms, malls, and complexes and are ready to make their mark in the city and its suburbs. Gomti Nagar already has five malls and will come up with three new malls – Tej Kumar Plaza, Raja Ram Kumar Plaza and Ansal Plaza. After coming of these new malls in the city, people have become brand conscious and with improved lifestyle are looking out for more international brands and luxuries, thus, demand for retail showrooms is also increasing. The hottest commercial destinations in the Lucknow are Hazratganj, MG Road, which are still attracting big brands and their franchises.

 

Areas like Hazratganj not only comprises of malls and shopping complexes but they also house banks, financial institutions, telecom service providers, government agencies and other offices. With Lucknow being an old city, builders are focusing more on outskirt areas and launching their commercial and residential projects there. Because of the fact that outskirt of the city is not much developed and is still in developing phase so property prices here are not much high as compared to prime locations in the city or other tier-II cities. Most builders think the time is favorable for investment in the suburbs as nobody knows in coming few years the Lucknow property prices may soar and get out of reach of middle and low income group people.