Looking for a big house with a small purse? Try the eastern side

News Posted - 2010-04-06

Ahmedabad: Want to invest in real estate? Forget western Ahmedabad, head east. The real estate market seems to be booming in Gujarat and many investors are putting their money in the eastern part of the city. Realty experts are claiming that the investor group has grown by around 25% in east compared to last year.

According to realtors, "Many industrialists, NRIs, NRGs and non-Gujaratis from other cities like Mumbai, Chennai, Bangalore andPune are pumping money into the property in Ahmedabad. However, to everyone's surprise, the same investor group is now targeting areas in eastern Ahmedabad like New Maninagar, Narol, Nikol, Ramol, Naroda and others as the returns are expected to be better there than in western Ahmedabad."

One of the major reasons is the feasibility of the property and land rates compared to western Ahmedabad. Those who have a limited budget or are looking for quantitative investment, are going to the east for the civic amenities are also being improved by the local bodies there.

President of Maninagar Builders Association, Vijay Gajjar said: "We are expecting over 30,000 homes in another two years in the eastern part of the city. There is a genuine demand here, even from outsiders." Also, developers from the western side are planning their schemes there, added Gajjar.

Developers like Dharmdev group, Shree Parshwanath Developers and 12-13 other developers have invested their money in land and have announced residential schemes too.

Realtors are claiming that because of the land price increasing in the western part of the city there is an inclination towards the east. MD of Parshwanath Group, Rushabh Patel who is also the vice-president of the Gujarat Institute of Housing and Estate Developers (GIHED), said "Land buying has become unfeasible in the west because of exponential land rates."

"Even if the land is bought, the final product that gets ready becomes beyond the reach of the middle income group (MIG). At the same time, eastern Ahmedabad has mass housing products and therefore demand is high."

He also added that there are many developers from the west who have bought land in eastern Ahmedabad.

Agreeing with this, Hitesh Shah of Space Management Ltd said: "We are also getting investment inquiries from across the globe. This includes Gujaratis from outside the state as well as non-Gujaratis, who are keen to invest in Ahmedabad. They are considering eastern Ahmedabad too for investment."

Source: DNA 5/4/10