Apart from a suitable budget and a strategic location, physical infrastructure also plays an important roll in the decision of buying a property. The approval for the Ahmedabad Metro Rail Project Phase-1 is expected to lift the real estate market of the city.
The metro phase 1 stretch covers two corridors – the North-South corridor starting from APMC, Vasna to Motera Stadium followed by the East-West corridor starting from Thaltej Gam to Vastral Gam.
If you are planning to buy a house in Ahmedabad, then localities near the upcoming Ahmedabad to Gandhinagar metro belt can be considered for good returns. “In almost all metropolitan cities across India, investing near the metro connectivity is considered ideal in terms of price appreciation and easy commute. Rapidly developing Ahmedabad has one more reason for the face-lift of its real estate sector,” says Nikunj Jani, lead consultant, Capital realtors.
Connectivity directly affects a buyer’s decision of selecting a locality. The upcoming metro belt will pass through the main city of Ahmedabad to the hub of IT and electronics industry (Gandhinagar). It will decongest some of the traffic marred areas of the city and will also ensure rapid connectivity to commuters.
Would the new metro lines affect property prices?
“The prices of property near the metro stretch have already started witnessing a rise and in future are expected to go up further. However, at present, the rental market stays unaffected” adds Jani. The middle class is expected to invest in these areas as home buyers from this segment prefer to live in areas having good metro connectivity.
“The returns on investment in areas within close proximity to the new metro routes are expected to be high. Many individuals already living in their own accommodation in Ahmedabad are banking on properties near the metro belt, to enjoy healthy returns once the metro is functional,” says Jitendra Soni, consultant, Harshil Estate.
Would the metro line bring new construction plans?
The upcoming metro belt comes with a scope of new development in areas with available vacant land. Hiren Patil, a local realtor at Disha Estate Management says, “Areas such as Hebatpur, Sindhu Bhavan Road and 5 km from Thaltej metro station, land is available where developers are planning to come up with residential housing projects.”
All these areas are within 3-6 km radius from the upcoming Thaltej Gam Metro Station. Prior to the announcement of the metro, these areas had a sizeable demand for housing but with the coming of the metro, the area is expected to witness more development and investments.
Upcoming metro routes
Localities to become accessible due to the upcoming metro are Motera Stadium, Sabarmati, AEC, Sabarmati Railway Station, Ranip, Juna Vajad, Usmanpura, Ashram Road, Nava Gandhigram, Madalpur, Paldi, Anjali, Vasna, APMC, Thaltej, Doordarshan Kendra, Gurukul Road, Commerce Six Road, Stadium, Ashram Road, Shahpur, Gheekanta, Kalupur Railway Station, Kanakaria East, Apparel park, Amraiwadi, Rabri Colony, Vastral and Nirat Cross Road.
Both buyers and investors have ample reasons to invest in Ahmedabad, with the new metro line set to bring enhanced connectivity and might work as an added reason for investment.
Reacting to election outcome, Anuj Puri, Chairman and Country Head, JLL India, said: “Housing shortage is legendary, and the Indian Government has always kept low-cost housing in the focus. However, most developers have shied away from focusing on this space because affordable housing is a relatively low-margin business; and in high inflationary scenario, profitability remains a key concern. Equity participation by PE funds has also been limited in the budget housing space.”
“The new Government may look at helping on quicker land acquisition, faster approvals, easy and low-cost funding availability and better infrastructure to make it a more interesting proposition for developers and investors,” he added.
He further added that in Gujarat (the home state of Narendra Modi), the Government has been extending a helping hand to developers who construct low-cost homes, although availability of cheap capital, lengthy approval process and affordable land availability continue to remain challenges.
AHMEDABAD: An HR executive working with a multinational struck gold in Prahaladnagar — a three BHK flat in a premium housing colony for Rs 50 lakh. “The developer had quoted the same amount for a 2 BHK unit two-three years ago in the same scheme. It seems this is a good time to buy,” says the 40-year-old professional who returned to her native after three years.
If you have money in hand, realtors are ready to welcome buyers with heavy discounts and freebies. Inquiries made by this correspondent, who posed as prospective buyer, revealed that sellers were willing to offer up to 25% discounts if the payment was made within 48 hours.
“The economic slowdown coupled with political instability has led to developers offering heavy discounts. The situation may change after the election results are out,” says a leading developer.
For instance, an upcoming posh residential complex on the SP Ring Road near new Chandkheda is priced at 45 lakh for a two-bedroom flat. Offer to pay cash and the price is instantly scaled down by 22%.
Similar is the situation in resale market. A 185 sq yard flat in a posh tower in Anandnagar was priced at Rs 80 lakh. When this correspondent inquired about the discount if full payment was made within two days, the seller quoted a revised price of Rs 68 lakh.
Insiders say that the downward trend started over two years ago when sales started slowing down due to soaring prices. Many were hoping NRIs to bail them out this winter but a poor response has left many desperate. Desperation to sell and raise liquid cash was apparent when recently many builders started offering scheme — a free car with a bungalow, buy a plot and get construction free, buy a luxury apartment and get furnishings free.
Yogesh Bhavsar, president of Gujarat Institute of Housing and Estate Developers ( GIHED), admits that a few builders are offering huge discounts. “It varies from case to case. Those who have holding capacity will never offer discounts. The rest would have no choice,” he says.
AHMEDABAD: The estate and anti-encroachment department demolished illegal constructions spread over 485 sq ft in residential plot No 21/2 and 24/2 in TP scheme 56 on Narol-Vatva Road near Neelam Traders in Isanpur ward on Monday. The commercial complex under construction was pulled down by the south zone team of the AMC after it was found being erected without proper permission. Illegal industrial construction was being carried out on the space meant for residential purposes. AMC is demolishing all construction work done after March 28, 2011, if found in violation of Section 260 of BPMC Act.
In another demolition exercise, the estate and encroachment department demolished illegal constructions spread over 3,013 sq ft in residential plot No. 333 on Piplaj-Pirana Road opposite Torrent power plant in Lambha (west) ward. The commercial complex under construction was pulled down by the south zone team of the AMC after it was found being erected without proper permission. Illegal industrial construction was being carried out on the space meant for residential purposes.
AHMEDABAD: Residents of 767 buildings face the prospect of their homes being sealed if they fail to install fire-safety features and equipment in their buildings by March 2.
The Ahmedabad Municipal Corporation on Tuesday filed a status report in the Gujarat high court in response to a PIL demanding the implementation of the court’s earlier directions on the enforcement of building bylaws relating to fire safety. The petition was moved by Prakash Nambiar through his advocate, Amit Panchal.
The AMC told the court that 767 buildings in the city, mostly residential, do not comply with fire-safety norms and that only 40-odd buildings have shown compliance.
The status report further stated that the AMC had issued final notices to each of these buildings and after the expiry of the deadline, strict punitive action would be taken. The last of such notices was sent on February 15. The AMC has also issued public notices though newspaper advertisements. The corporation has asked the buildings to comply with the norms within 15 days of receiving the notice. The court has scheduled the next hearing on the matter on March 3.
The status report said that the final notice was issued under section 268 of the Bombay Provincial Corporation Act. The section is clear that if the owners fail to comply with the directions of the notice the building can be sealed by the corporation.
Threat of contempt
Rewati Towers, Shanker Chambers, Takshashila Blocks A/B, E/F, C/D and G/H face contempt proceeding for non-compliance of court orders. In its interim order on January 28, 2014, the high court had stated: “It …appears from the report that four other buildings…though were made parties to the earlier proceedings, have not yet complied with the requirement and, at the same time, Takshashila has not offered inspection. Such being the position, we issue notice upon the owners and occupiers of those four buildings as to why they should not be penalized for non-compliance of their undertaking given earlier before this Court. Rule returnable four weeks.”The state government had in January issued a notification stating that the new, stringent Fire Safety Act would be implemented from March, two months after considering objections from people.
AHMEDABAD: The Gujarat high court has sought a reply from the state government, the urban development department and the housing commissioner over a petition filed by civil engineers. The engineers have claimed in their plea that they were recruited in the Gujarat Housing Board but were later deputed as chief officers across the state.
These engineers, who have been serving as chief officers for the last one decade because the Housing Board had been defunct from 2001, have demanded repatriation to the Board because the state government once again has big plans for it.
After the state government came up with projects worth around Rs 2,000 crore for the Board, it also began the process of recruiting engineers for different posts in the Board. Moreover, the government has also started recruitment for the post of chief officers in various municipalities.
The 26 engineers, who are on deputation, have urged the court to stop the government from recruiting chief officers for municipalities and engineers for the Board. They have argued that instead of repatriating senior and experienced civil engineers appointed between 1984 and 1992 by the board, recruitment of new engineers would increase the financial burden on the Board. HC has kept further hearing on February 18. By then, authorities have been asked to submit their replies.
AHMEDABAD: The Gujarat high court on Thursday directed the state government to close with immediate effect all minor mineral mining activities that are underway without environment clearance (EC). Construction business might have an adverse impact as minor minerals include sand and lime stone.
The high court has also ordered to stop excavation within the certain limit of protected forest areas. Certain kind of mining, however, will be permitted for next six months with certain riders. The court also directed the state government to strictly adhere to the Supreme Court’s guidelines issued in February 2012. The SC made it mandatory for miners to have an EC before starting excavations across the country.
There are 2,887 mines that are located within 5 km of forest area, nature park, reserved forest, sanctuary.
“The state has been directed to stop the excavation from these mines and resume the possession of the area. Any grant in these areas in future should be as per the Supreme Court guidelines. Prior environment clearance is must and should be allotted to bidders only after auction of the leases,” the court said.
Those mines that were given permission before the SC order could continue mining for six months. But they, too, will have to obtain an EC within three months. After the expiry of this mining lease, the government will auction again and it will be the bidder’s liability to obtain an EC.
The state government gave a list of 7,990 lease holders, and the court took a serious note of some glaring example of laxity in approval of mines. “In certain cases, the state government has not mentioned the place or the survey number of the land where mining takes places. This looks like a magical trick. Irrespective of period of the grant or renewal, such mines must be cancelled immediately,” court said.