Introduction
Real estate is in the last couple of months, real estate in Gujarat’s Gift City, which has been leading the motel business in America, has seen steady growth. Real estate developers said that the number of expatriate Indians buying properties here has increased significantly. Booming in Gift City due to NRI bookings.
“Before December 2023, 15-17 percent of bookings at GIFT City were from NRIs. It is purely for investment purposes only. Now, NRIs have taken up real estate in a big way. The percentage of NRI bookings in our projects has increased to 35-37 percent. This (relaxation of liquor laws) is the last piece of the missing puzzle in GIFT City,” says Deep Vadodaria, CEO, of Neela Spaces.
Even If the Rupee Depreciates, One Can Get a Profit on the Investment
“In the last one year, the real-estate market in GIFT City has appreciated between 40-60 percent. A similar kind of return trajectory is not possible anywhere else in the world. NRIs outside India are making modest returns on their investments because of low interest rates. So they will continue to look for greener pastures,” Vadodaria added.
He felt that poor interest rates in their respective countries are attracting them to GIFT City, where they could expect to secure their capital, and also get a return on their investments, despite a depreciating rupee.
GIFT City has mainly two sources of investment: one is the SEZ area, and the other is the domestic tariff area. “In the SEZ area of the project, the exit horizon is long. Investments are huge. That means a fixed return of at least nine percent (per annum) for NRIs, and ultimately they get a premium. In DTA, investments are small. Are usually backed by a bank loan,” says Vadodaria.
Current Economic Situation in the US
Nila Space in Gift City, Gandhinagar, is not an isolated case Nila Space is not an isolated case in Gift City, Gandhinagar. Both Shivalik and Shilp groups are seeing similar trends in their real estate projects. “Due to the current economic situation in the US, many motels operating there are looking to divert 20 percent of their funds to Gift City.
I have met four such entrepreneurs, and three of them own motels in the US. Each owned between 10 and 30 motels. These motel owners have already made small investments in our projects. But now they are looking to park Rs 500 crore in our residential and commercial projects in GIFT City,” said Taral Shah, managing director of Shivalik Group, which builds residential and commercial projects.
Most of the Investors Here Are from Gujarat
One of the largest real estate developers in GIFT City says investors from the US, UK, Dubai and Africa are flocking to GIFT City, looking to buy outright. “Most of the investors in our projects in Gift City are from Gujarat. However, there is a growing segment of non-resident Indians (NRIs) buying properties.
These NRIs currently constitute 20 percent of our investor base. GIFT City is developing rapidly and the project is expected to grow exponentially in the next five years. Yash Bhrambhat, founder of Shilpa Group, said that they are more interested in those who are looking to make quick profits in the shortest possible time.
Conclusion
Real-estate consultants point out that real-estate prices in GIFT City have increased by over 45 percent in 1.5 years. Jigar Mota, head of transactions (Gujarat), global consultants Cushman and Wakefield (C&W), said, “Sq ft of residential property in Gift City is being sold from Rs 5,500 to Rs 8,000 two years ago. For more information, visit our Openplot.com.
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