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In Ahmedabad, development rights for a riverfront plot along Vallabh Sadan have increased by INR 8,824 per square metre over three months, reaching INR 26,000 per square metre in November 2024. A new request for proposal (RFP) for a food park at another Vallabh Sadan plot now sets the base price at INR 32,500 per square metre, according to the Sabarmati Riverfront Land Disposal Policy. Additionally, LuLu International Shopping Malls Pvt Ltd recently acquired a plot in Chandkheda along SP Ring Road for INR 519 crore via an online auction by the Ahmedabad Municipal Corporation.
Ahmedabad's real estate market is witnessing notable shifts along the Sabarmati Riverfront, where prices for development rights have risen significantly over the past three months. According to recent data, the Sabarmati Riverfront Development Corporation Ltd (SRFDCL) successfully sold development rights at a rate of INR 26,000 per square metre in November 2024. This represents an increase of INR 8,824 per square metre from just three months earlier, reflecting growing demand and a revaluation of the riverfront property market. Advertisement
The plot in question is located at Vallabh Sadan, near Ashram Road in Ahmedabad, a location that has seen increased interest due to its strategic placement along the Sabarmati River. The rise in prices has been attributed to several factors, including robust buyer interest, the attractive location, and the evolving regulatory framework under the Sabarmati Riverfront Land Disposal Policy. This policy ensures that all development rights are valued based on a standardised formula, thereby creating a level playing field for both buyers and sellers.
In a related development, SRFDCL recently issued a new request for proposal (RFP) for the development of a food park named Riverside Savouries. The RFP, which was released on 13 September 2024, sets the base price for development rights at INR 32,500 per square metre. This new RFP applies to another Vallabh Sadan plot and reflects an updated valuation that takes into account the rising market rates observed on the riverfront. The proposal involves leasing the plot for a period of 25 years, with an annual lease amount of approximately INR 11.35 crore. Sources within SRFDCL indicated that this strategic move is expected to attract interest from developers looking to capitalise on the vibrant market and convert the land into a mixed-use development featuring a food zone and other complementary facilities.
The process of allotting these development rights has been dynamic. For instance, the western riverfront plot, which measures 4,420 square metres, was initially offered with a base price of INR 23,676 per square metre. A Mumbai-based company emerged as the highest bidder for this plot, securing the rights at the elevated price of INR 26,000 per square metre. Following this transaction, the bidder submitted requests to modify the construction plan originally proposed in the RFP. These modifications were subsequently approved during a meeting held by SRFDCL on 28 November 2024, indicating a flexible approach by the authority to accommodate market-driven changes while adhering to regulatory guidelines.
In addition to these transactions, the real estate market in Ahmedabad continues to attract significant investment interest from prominent developers and investors. Notably, LuLu International Shopping Malls Pvt Ltd recently acquired a plot in Chandkheda along SP Ring Road for INR 519 crore through an online auction conducted by the Ahmedabad Municipal Corporation. This acquisition underscores the broader appeal of the region and highlights the strong investor confidence in Ahmedabad's real estate sector.
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