Here is an excerpt from Goldman Sachs' views on the property market in Ahmadabad. Average Residential prices has doubled in the past 2 years from Rs 1,200-Rs 1,300 to Rs 2,500. Goldman adds,
Ahmedabad have traditionally been low as it is a market that does not benefit much from inter-state urbanization unlike Surat, which has a thriving diamond industry. Also, Hazira, in Surat district, is an industrial hub. New township and IT policies are likely to be announced in the near term, which could help develop an IT industry in Ahmedabad. Residential prices could rise 10%-15% over the coming years.
Goldman on Retail Rentals,
Prime retail locations in Ahmedabad include SG Highway and CG Road in the western side of the city. We believe current market rentals are around Rs100/sq ft/month along SG Highway and rates can be as low as Rs40-Rs50 for anchor tenants. In a year, rents in the western parts could come down to about Rs80/sq ft/month given projected supply.
We feel by the end of the year, real estate prices will be reasonable and loans more affordable to the consumers.
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