by Nirav Kothary, Head
– Gujarat Operations & National Director – Industrial
Services, JLL India
Gujarat
is one of the most industrialised states in India, with a well-earned
reputation of being very investor-friendly. The state has a proven
track record for attracting high volumes of investment, becoming the
most favoured investment destination in India on the back of its
sound economic policies and pro-active governance. The Vibrant
Gujarat Summit has acted as an effective catalyst for Gujarat’s
journey of industry growth, and the 6th edition of Vibrant Gujarat in
2015 saw as many as 21,304 Investment Intentions signed.
The Gujarat
Government is developing the only IFC (International Finance Centre)
in Gujarat – GIFT City (Gujarat International Finance Tec-City) is
an under-construction central business district to be built on 886
acres of land. Additionally, Dholera SIR, the Gujarat affordable
housing mission, the Kalpsar Project, PCPIR, DMIC, DFC, High-Speed
Rail Corridor and various other mass transit projects across the
cities are initiatives to boost the growth of Gujarat’s urban and
industrial sectors.
Gujarat is home to
various cities such as Ahmedabad, Vadodara, Surat, Rajkot, Jamnagar,
Vapi, etc. which are nodes of urban development in the state, are
considered independent growth centres with their own identities, and
attract population from across the country.
Ahmedabad
Ahmedabad, the
seventh-largest metropolis of India, is Gujarat’s pharmaceutical
and textile hub. Many infrastructure projects like Sabarmati
Riverfront, Bus Rapid Transit System and the Ahmedabad–Gandhinagar
metro - underway or already operational - will eventually boost the
realty sector of Ahmedabad.
Major residential
projects are coming up in the western part of the city, in areas like
Vastrapur, Satellite, Prahladnagar, Bopal, Vaishnodevi and Bodakdev.
Other areas of the city have also witnessed significant residential
supply over the last few years. The upcoming and most active areas
are Bopal, Prahladnagar, Vaishnodevi, Raysen (Gandhinagar) and Ambli
Road, which have quality residential supply of various unit
configuration. The price range of the inventory is INR 3000 to INR
8000 per sq.ft.
The major supply of
good quality commercial real estate is in the central as well as
western region. SG Highway, Ashram Road, CG Road, Sindhu Bhavan Road
and Corporate Road have witnessed large commercial projects offering
strata sale options. The capital rate for commercial estate ranges
between INR 5,500-7,500 per sq. ft., while the rentals vary from INR
35 -55 per sq. ft. The major occupiers are financial institutions,
corporate and service sector offices.
The more significant
supply of high street as well as organised retail spaces is
concentrated in the western part of the city. CG Road, Ashram Road,
SG Highway and Prahladnagar are the dominant high street retail
locations, while malls are located in the Vastrapur, SG Highway and
Satellite areas. The capital rates for retail spaces ranges between
INR 12,000-22,000 per sq. ft., while the rentals vary from INR 80
-150 per sq. ft
A large number of
industries related to textiles, chemicals, machinery, metal products,
pharmaceutical, engineering, plastics, electrical appliances,
electronics, passenger cars, etc. are located in the district.
Well-developed infrastructure, a prudent industrial policy of the
State Government and a peaceful industrial atmosphere have been vital
factors to contribute to the industrial growth in the district.
Sarkhej-Sanand Road,
Bavla–Changoder, Kadi-Kalol, Vatwa, Narol and Chatral are
industrial centres of Ahmedabad which have witnessed major growth
post 2001 due to favourable industrial policies. Many large
multi-national industries have established their plants in these
locations.
Outlook
Apart from growing
business sector and rapid industrialization, there are other growth
drivers such as GIFT city, the Delhi-Mumbai Industrial Corridor
(DMIC), the new affordable housing policy, newly-revised DCR with
enhanced FSI, the Ahmedabad–Gandhinagar Metro and Transit-oriented
Development (the successfully-running BRT and upcoming Metro Rail
Project). These projects will significantly impact the real estate
market of the city.
Vadodara
The third-largest
city of Gujarat state has the advantage of strategic location in
terms of connectivity with Ahmedabad and Mumbai, and being the
geographical centre of the state. The prominent corridors are Old
Padra Road, Gotri Road, Waghodia Road and Ajwa Road. Development on
the north and south sides is restricted due to the presence of
industrial areas.
The established residential areas in city - Alkapuri, Fatehgunj, Gotri, Gorwa, etc. - are mostly centrally located. Upcoming areas include Gotri-Sewasi, Old Padra Road and Ajwa Road. The capital rate for residential apartments in the established areas ranges between INR 2,100-2.900 per sq.ft., and higher for luxury developments.
Vadodara’s
commercial sector comprises of offices of financial institutions,
academic institutes and branch offices of different enterprises.
There are few existing commercial complexes and relevant supply is
limited as of date. Most commercial developments are on RC Dutt Road,
Old Padra Road, Gotri Road, etc.The capital rate for commercial
spaces ranges between INR 2,500-5,000 per sq. ft. Occupiers are
manufacturing companies having branch offices, financial institutions
etc.
R C Dutt Road, Race
Course Road, Gorwa and Old Padra Road have emerged as the prime
retail areas of the city. A majority of national and international
brands operational in the city are primarily located in these
regions. The capital rate for retail spaces ranges between INR
8,000-12,000 per sq. ft. for high street retail.
Vadodara has been
driven by industrial developments, especially in sectors like
engineering machine tools, cotton textiles, glass, pharmaceuticals,
chemicals, petrochemical and fertilizer industries. Major industries
are located in north, south and eastern parts of the city. In areas
like Manjalpur, Makarpura and Waghodia, Vadodara also has also been
attaining growing importance in the knowledge and service based
industries like IT/ITeS and biotechnology.
Outlook
Various industrial
initiatives and its strategic location on the Ahmedabad-Mumbai
corridor are major growth drivers for the city. Apart from these, the
provision of NISG (Nodes to Induce Specific Growth) in the
development plan, BRTS and industrial development of eastern part
(mainly on NH8) can be considered as future growth drivers of the
city.
Surat
Surat is distinctly
divided into two parts by the River Tapi. The eastern part of city is
large in area and has traditional settlements which comprise of
the railway station, the old city and textile and diamond
industries. The western side of river is emerging, and major real
estate developments are happening in areas like Vesu Road, Pal Road
and Dumas Road.
The established
residential areas of the city are Adajan, Ghod Dod Road, Dumas Road,
Varacha, Udhna Road, etc. The real estate market of the city has
witnessed considerable activity in the past few years. Prime
residential areas in the city are Athwa Lines, Ghod Dod Road, Dumas
Road and Adajan. The emerging / developing residential areas in the
city are Vesu, Puna-Kumbharia, Ved Gam and Bhathar.The capital rate
for residential apartments ranges between INR 4,000-8,000 per sq.
ft.
Varacha Road, Parle
Point and Athwalines have a good concentration of commercial
establishments. This micro-market houses the textile market of the
city, along with tenants from the BFSI sector, business professionals
and corporate groups. The upcoming secondary business district is the
Piplod–Dumas Road area. With the growing urbanization of the city,
its commercial presence is expanding to this corridor.
Adajan, across the
river Tapi, is also emerging as a commercial hub with new commercial
developments coming up. This area is expected to develop further when
the proposed new bridge connecting the Pal Hajira Road to Dumas Road
is complete. The capital rate for commercial spaces ranges between
INR 4,500–8,000 per sq. ft.
The established
retail areas in Surat are Athwalines, City Light Road, Adajan and
Dumas Road, where major high-street and retail malls are located. The
capital rate for retail spaces ranges between INR 9,000 – 25,000
per sq. ft.
Surat's economy
consists of textile manufacturing, trade, diamond cutting and
polishing industries, intricate zari works, chemical industries and
the petrochemical and natural gas-based industries. The Hazira
Industrial area and port is situated in the western side of the city,
within the Surat Metropolitan Region. The establishment of large
industrial giants in the Hazira Industrial Complex has changed the
industrial scenario in the region.
Outlook
Surat houses
established diamond and textile industries which will continue to add
to the growth of the city. Additionally, DREAM city (Diamond Research
and Mercantile city) on Khajod Road, its strategic location in
vicinity to Mumbai, BRTS, the Tapi Riverfront project, the proposed
mega tourism project near Suvali, the container terminal proposed
near Hazira and the fact that Surat is now part of the Government’s
100 Smart Cities program will be future growth drivers of the city.
Rajkot
Kalavad Road,
Jamnagar Road and the 150ft Ring Road are the upcoming destinations
for residential development in Rajkot. The city features residential
apartments priced in a wide range, from as low as INR 2,500 per sq ft
to as high as INR 9,500 per sq ft in quality products which include
centralized air conditioning and high-grade flooring and fixtures.
The major commercial as well as retail areas of Rajkot are Yagnik Road, Kalawad Road and Race Course Road. The outright sale price of commercial spaces varies between INR 3,500-6,500 per sq. ft. and for retail spaces, the range is INR 10,000-14,000 per sq. ft.
Manufacturing is the
city’s major industry, with most activities concentrated in the two
main industrial estates at Aji and Bhaktinagar. In the past, Rajkot’s
economy concentrated around the establishment of cloth mills, while
the current trend of industrial growth is towards the engineering and
auto ancillary sectors.
Outlook
Apart from
automobile and ancillary industrial development, various
infrastructure initiatives such as BRTS, the newly-revised DCR, the
fact that Rajkot is the activity center of entire Saurashtra region
and its proximity of smaller towns, which are future growth drivers
of the region.