Diwali comes ahead this time in Ahmedabad. Since the announcement of Tata Nano's arrival in Sanand, just 25 kms away from Ahmedabad, fireworks light up the night sky and large billboards flash pictures of Narendra Modi and Ratan Tata with the welcome note:

The Land of Entrepreneurs welcomes Tata NANO.

Analyst are optimistic that this will surely change the fortunes of Ahmedabad real estate and its skyline. It is not only a city which is cosmopolitan, safe and thriving...it is the culture and the hospitality of the citizens which gives a sense of security for one and all.

Here's an extract from Economic times (8th oct'08)

AHMEDABAD: At a time when the property markets in the country are witnessing downswing, Tatas’ decision to park Nano at Sanand will not just boost
land prices in and around Ahmedabad by almost 25%, it will also create a brand new “realty” corridor between Sanand and Ahmedabad, global, experts say.

Global real estate consultant Jones Lang LaSalle Meghraj (JLLM) feels that Nano plant will not only propel realty growth, but it will also create new avenues for retail and hospitality sector. “If such a plant is located close to a major city, the potentially short commute will cause a new realty corridor to develop and prosper”, says Ashutosh Limaye, associate director, strategic consulting, (JLLM).

“Most Indian markets are currently in a low phase. The arrival of an industrial plant of such size and scope will definitely help the location in question to reflect positive trends faster than other areas. There will be an influx of manpower from other states, and the market in question will become more cosmopolitan and more interesting in real estate terms on a national scale,” he said while talking about Tata’s decision to relocate its Rs 2,000-crore Nano plant to Sanand from Singur (West Bengal).

“Real estate and its value is a function of employment. When any big industrial plant comes into a locality, it catalyses direct employment in the actual plant and indirect employment in the associated feeder units (ancillary industries will also be located near the plant.) Moreover, there will be indirect employment for various other support service providers. For all of them, residential spaces across all typologies (affordable and mid-income to luxurious) are essential. Once a residential district is planned, retail, schools, hospitals, recreational centres etc. are natural add-ons”, Limaye told ET.

“Apart from direct demand generation from actual end-users, such developments in any particular location also attract the interest of investors, who will seek to buy properties for renting out. Hospitality and retail will also be boosted”, he says.

An official of GIHED (Gujarat Institute of Housing and Estate Developers), a city-based body of developers, feels that that the Tata Nano project will provide the necessary boost to the property markets in and around Ahmedabad. “The ripple effect of the Tata Nano project will be seen in the Ahmedabad property market in the next three years. The project will attract new manpower and definitely power the growth of the housing segment in Ahmedabad”, Suresh Patel, vice-president of GIHED said.

“The land prices between Ahmedabad and Sanand are also expected to rise by about 25% in the coming days”, he said adding the prices which were about Rs 1,000 for an square yard is bound to leap-frog in the coming days. “Once Dholera port in Ahmedabad district develops, the entire region will grow by leaps and bounds”, Patel remarked.

The biggest beneficiaries are developers like Savvy Infrastructures Ltd who are already in the process of building large residential projects in nearby places like Dev Dholera and Nal Sarovar.

Similar views were aired by Cushman & Wakefield, another global real-estate solutions provider. “The economic activity (in form of the Tata Nano project) will enhance capital value of land in and around this corridor of Sanand. Positive sentiments in times we live in today, which are not so encouraging, would witness definite lift the spirits for investors. Hospitality, retail, logistics, transporters are likely to benefit in the medium to long term”, said Sanjay Dutt Joint Managing Director, India, C&W.

“Nothing will happen in the short term but for some lift in land valuations n around proposed Tata site.

However medium to long term impact would lead to generation of demand in Ahmedabad, which is highly under leveraged vis-a-vis other top cities in India. It is about time the world sees it and the Tata deal would certainly help”, Dutt remarked.
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