REAL ESTATE STUDIES AND MANAGEMENT ACADEMY- need

Urbanization and Real Estate Industry in Gujarat- A changing scenario

Rapid urbanization in major trade and industrial centers of Gujarat and densification of cities nationwide has led to an ever-increasing demand for housing and infrastructure. The rate of conversion of peri-urban agricultural land to non-agricultural use is therefore extremely high. Projected future investment in construction and related works exceeds 4500 billion rupees nationwide.

The macro economic environment and growth in investments have direct implications for the real estate industry. Consequently, this industry has technically qualified professionals as well as high net-worth individuals operating in it: a 50 billion rupees industry in Gujarat with an annual requirement of nearly 20 million square meters of commercial, residential, recreational and industrial use. In addition, innumerable property transactions in terms of leased spaces, ownership transfer and other real estate deals occur in and around urban centers.

Gujarat is known for having outstanding entrepreneurship skills amongst the natives and strong commercial linkages with Mumbai and the West. Traditionally, investments made in Gujarat were aimed at expanding business base and improving manufacturing process and service industry; the surplus money was invested in stock markets, banks and real estate assets creation. Today, real estate investment has become a more favorable choice due to reducing interest rates, instability in the stock markets and cooperative banks, and attractive home loan packages.

The comparative price of real estate in cities of Gujarat is 40 to 60 percent discounted than any other city of comparable size and nature in India. Individuals now invest in larger areas of land â€“ housing, retail, commercial and other modes of real estate. Government initiatives such as repeal of Urban Land Ceiling Act, 1976 (ULC Act) and amendment in the Rent Control Act (RCA) have encouraged this trend, and it is well-placed to improve in years to come.