The boom in Ahmedabad realty and the good profits that can be made here have spurred not only the city’s realtors into action, but have also attracted some major Mumbai-based players. If sources in the city’s real estate sector are to be believed, many of the Mumbai-based builders have plans to come up with affordable housing schemes for the middle income group.
The Ajmera Group has, in fact, re-entered Ahmedabad’s realty market after almost 20 years. The company, in association with city-based Bakeri Realty, recently bid successfully for 2.39 lakh sq metres of Calico Mills land at an auction on May 1. The two realty companies together paid Rs211 crore for the land.
The other entrant, Gemstone Investments, a non-banking finance company which is also listed on the BSE, has formed a new company called, Dhanushya Infracon Pvt Ltd, for forays into the city’s real estate market.
The Mumbai realtors are excited by the state’s industrial and economic development. They believe that the development of the Dholera Special Investment Region (SIR) and a new airport at Fedra (both near Ahmedabad) will boost industrial and economic activity in and around in the city. The fact that a large portion of the proposed Delhi-Mumbai Industrial Corridor (DMIC) passes through the state is also expected to push up realty rates here.
“Given that there is large-scale development on the outskirts of the city, the future of real estate in Ahmedabad definitely looks bright,” said Manoj Ajmera, director of Ajmera Group of Companies. “This is one of the reasons why we decided to re-enter the market.”
He revealed that the group had been scouting for land to build residential schemes in the city for the past six months. They want to focus on affordable housing for the middle-income group, he said.“Our core expertise lies in our ability to meet people’s expectations of good construction and timely delivery of homes,” Ajmera said.
Narendra Ganatra, chairman and managing director of Dhanushya Infracon, said the state has registered double digit economic growth and is considered very safe for making investments. The group wants to focus on the Ahmedabad realty market for at least 10 years, he said.
Heavy investment in real estate by NRGs and NRIs and the growing gap between demand and supply of residential properties for the middle-income group have also encouraged realtors to come forward with various schemes. A number of townships are coming up on the outskirts of the city but that has not dimmed the faith of Mumbai-based realtors in the profitability of the Ahmedabad market. They believe there is potential for development of affordable houses even within city limits.
“The townships are coming up on the outskirts,” Ajmera said. “But we want land within the city and are looking at different locations.” A source said there are many other players keen to enter the Ahmedabad realty market. These include Mumbai-based Rustomjee Builders and Acme Group of Companies and Bangalore-based Nitesh Estate. “These real estate majors are scouting for big chunks of land in the city and surrounding areas,” the source said.