Ambit Capital has put out an interesting note where they are comparing and talking about whether Ahmedabad can be the next best thing when it comes to real estate.
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Investors generally tend to focus on the top seven cities when it comes to real estate, such as Mumbai, Delhi, Bengaluru, Hyderabad, among others, but Ambit believes that Ahmedabad is an upcoming real estate market.
What are the factors working for this market?
Firstly, it can be the next play on the India growth story. Secondly, is the continued infrastructure push for the city. The GIFT City (Gujarat International Finance Tec-City) has seen increasing foreign investment. Additionally, there is high degree of interest from the banking and IT sectors, which have occupied more than half of the city's commercial real estate.
Ambit says that Ahmedabad right now is at a juncture where Hyderabad was 7-8 years prior. Since then, the capital city of Telangana has seen stellar growth.
So what are the visible shifts in the Ahmedabad market? The rise of plotted villas, premium housing are some of them to begin with. Prominent listed and unlisted developers in the city include Arvind Smartspaces, Ganesh Housing and the Shivalik Group.
What also makes the rise of Ahmedabad noticeable is the fact that the city has seen more real estate being sold than Kolkata and Chennai during the first half of calendar year 2022. The city's commercial stock is also higher than that of Kolkata.
The 35 million square feet of commercial stock available makes Ahmedabad a compelling case to be included in the top cities, according to Ambit. The commercial stock of Ahmedabad has seen a compounded annual growth rate (CAGR) of 13 percent over the years.
Ahmedabad's real estate market has been selling 16,500 units annually.
In an interaction with CNBC-TV18, Pavitra Shankar of Brigade Enterprises said that their focus continues to remain on the South Indian market, while Ahmedabad will take some time to scale up in demand as well as size.