Gift City Remarkably-well and classic condominiums
However, the story of rental values has not been the same with the commercial property and interestingly the demand for rental commercial properties has shown an upward trend. Analysts point out that it is also indicative of the fact that even the capital value of the commercial property in the major markets has shown better appreciation than the housing segment in the last few quarters. That nevertheless has been only Gift City of the indicators to reflect why and how commercial rentals have shown better appreciation than the residential property. The fact of the matter is that even in the commercial segment there is no uniform pattern in the two key verticals of office space and retail space and that shows how the property market is indicating the larger outlook of the overall economy.
The demand in the two verticals may not be going in two different directions altogether, yet there is absence of any uniform pattern to be vouchsafed as the trend the retail segment of the commercial property that looked bullish during the peak cycle of property rally has though shown upward movement, it is nowhere near the growth rate of the peak level. Reasons are very simple the fact that the lifestyle driven consumption level of the state at large has gone down drastically in the current turbulent economic Gift City Ahmedabad has its effect on the demand for acquisition of the space as well. It is all the more evident in the sense that while the retail per se has seen some growth in the rental values, it has been stagnant with the hotels and the multiplexes; thus reflecting that people are only spending on the need based commodities and luxury spending has completely been curbed in the major cities of Gujarat. The commercial property owners are actually being forced to renegotiate with the hotel and multiplex chains to avoid getting their space get vacant. Some of them have even gone into revenue sharing model to avoid complete price crash.
Most of such developers who are operating on the lease model have been hit badly the sales model has also brought the inventory hangover high for the developer. If the promises made at the recently held Vibrant Gujarat Business Summit were to bear fruit then real-estate in Gujarat is in for a major boost. Three industrialists have promised to invest over INR 1, 20,000 crore into Gujarat. Mukesh Ambani, Managing Director of Reliance Industries Ltd, has promised INR 100,000 crore, while Kumar Mangalam Birla, the Chairman of Aditya Birla Group said he would invest IR 20,000 crore in infrastructure. Sam Walsh, the CEO of Rio Tinto, the British-Australian mining biggie has promised to add 30,000 jobs to Gujarat’s diamond cutting industry. All this is music to the ears of the real-estate developers who must be already at their drawing boards getting the blue prints for the commercial, residential and retail developments. Like other cities, industry and commerce is shifting to the outskirts of the city so the developments are now happening on the outskirts. The main reason for this move could be the lower cost of land on the fringes of the city. The other reason could be that the developer could plan and offer a better choice, which would make an improvement on the quality of life of the home buyer. There is also a lot of interest shown for the localities of interest are around Wachovia Road, which is on the east of the city and Gotri, which is on the west.