NRIs Drive Luxury Segment in Ahmedabad
Ahmedabad, which is generally considered a tier-II real estate market, is witnessing a range of luxury projects. The demand for luxury segment is mostly driven by Non Resident Indians (NRIs) and High Networth Individuals (HNIs).
NRIs drive luxury segment
Along with Mumbai, Delhi, Pune and few other cities, Ahmedabad is fast becoming a hub for luxury projects in India. Ahmedabad is considered a price-conscious real estate market due to its recent emergence as a major real estate market. However, the luxury segment is making a slow, yet steady entry into the city. This growth of the luxury segment is primarily being driven by NRIs.
Analysts say that it is not surprising that Ahmedabad has emerged on the radar of NRIs who want to invest in luxury projects, due to its vibrant economic activity. There are several infrastructure developments in Gujarat, especially in Ahmedabad, which have boosted the realty market. With a good civic infrastructure and connectivity in place and rapid industrialization, Ahmedabad is attracting foreign investments (FDI) as well as multi-national companies (MNCs) that want to set up base here. These are indications of a good progress for the city promising good investment returns for NRIs. Apart from NRIs, the development in the city has struck a cord with the local affluent residents of Ahmedabad.
What is more promising is the availability of good returns at lower real estate investments. The property values here are far lesser against the exorbitant values in Mumbai, Delhi and even Pune. Another major driver for the luxury segment is that, unlike Gurgaon or Mumbai, Ahmedabad’s realty is not speculation driven. There are few developers in the segment and there is a limited supply of luxury projects, which lowers the supply-demand gap. Some of the active developers in this segment include Ganesh Housing Corporation Ltd, Goyal & Co, Merlin Group and GD Infrastructure.
Experts indicate visible change
Experts claim to have witnessed changes when it comes to buyer tastes, both by local wealthy residents as well as NRIs. One of these changes is the liking for second homes. Also, more people seem to be opting for luxury apartments than luxury bungalows. Luxury projects, which were sparsely visible in the outskirts of the city are making their way to some of the central parts of the city. ‘Smart homes‘ with digital security systems are on the offerings as well.
There are various structures being built including self-sufficient houses with facilities such as post office, shopping mall, multiplex and petrol pump. There are also projects with contemporary technology to attract customers.
The luxury segment in Ahmedabad is going through a learning curve. There is still time before Ahmedabad can be clubbed with other luxury destinations such as Mumbai and Gurgaon. However, with an increase in demand by NRIs for the luxury segment, there are also developers coming up with more projects catering to this segment. As such, it may not be long before Ahmedabad becomes a destination for luxury projects.
