GIFT City, Gujarat – a prestigious project by the Government of Gujarat – is the ‘finance and technology gateway of India for the world’. As a hotspot investment destination for the future, major real estate players in the country, including SOBHA Limited, have chosen the location for some of their marquee projects.
Gujarat International Finance Tec-City, popularly known as GIFT City, has the rare distinction of being India’s first operational greenfield smart city and international financial services centre. The 886-acre integrated project on the banks of Sabarmati River in Gandhinagar, Gujarat, comprises financial, commercial, and residential complexes and a metro station, scheduled to be completed by 2024. With clearly demarcated SEZ and non SEZ areas, the GIFT City marks a new era in India’s emergence as an economic powerhouse.
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Historical Context of GIFT City, Gandhinagar, Gujarat
Conceptualised in 2007 by the Government of Gujarat, land acquisition for the GIFT City was started in 2008. Today, the project stands as ‘the finance and technology gateway of India for the world’.
As the ‘new epicentre of global finance and IT’, GIFT City houses multinational banks – in the last count there were 23 of them; close to three dozen fintech companies, two international stock exchanges and the country’s first international bullion exchange.
Of the 886 acres being developed at present, 67% of the area is earmarked for commercial development, 22% for residential spaces, and 11% for community or social spaces.
Current Real Estate Landscape in GIFT City
About 4,500 residential units are currently being built in the township in addition to the development of a central park, recreational areas, malls, theatres, and entertainment zones, scheduled to be completed in the near future. Multinational tech giant IBM has a 60,000 sq. ft. facility in GIFT City. Capgemini also has a 45,000 sq. ft. office space here. Google is in talks with the global leader in real estate investing, Blackstone, and is planning to take up a 20,000 sq. ft. area for its office in the immediate future.
Major real estate players in the country are developing both residential and commercial spaces in the township in Gandhinagar, Gujarat. SOBHA Limited, India’s most-trusted developer, has two residential projects in the locality – SOBHA Dream Heights and SOBHA Avalon. The 33-storeyed SOBHA Dream Heights, one of the tallest residential towers in Gujarat, has been completely sold out whereas SOBHA Avalon has limited premium units available.
Factors Shaping the Future of Real Estate in GIFT City
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Governmental Policies and Regulatory Environment
Often, a concern for real estate developers and customers alike is the unpredictability involved with real estate projects owing to delays in sanction and paperwork. However, GIFT City has investment friendly policies such as seamless and efficient single-window clearance, fast approval process, and tax benefits including zero GST and 10-year tax holiday.
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Technological Advancements and Their Influence in Real Estate Development
Technology is rapidly changing and like any other sector, real estate is also influenced by technological advancements and trends. Let’s look at some of the most important ones among them and how they influence the real estate sector at present and in the future.
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Big Data and Analytics
When massive amounts of data are analysed, it helps a property owner to price a property the right way based on real-time regional price analysis and potential price fluctuations in the future.
- Helps to mitigate risks by predicting future prices.
- Helps to have better marketing strategies based on data-driven insights.
- For a customer, it helps in choosing the right property based on various factors.
- Better workflow and profitability for the real estate sector.
Impact of Financial and Business Dynamics on the Real Estate Sector
Like most of the countries, the real estate sector plays a crucial role for the growth and development of India. With relaxed norms in policies and regulations in GIFT City, the finance and business sector will find it immensely beneficial to set up their offices here. This, in turn, will give a tremendous fillip to the real estate sector in the future.
Environmental Sustainability and Urban Planning Initiatives
Built to be urban and sustainable, the project is India’s first Greenfield Smart City to be awarded with the IGBC Green Cities Platinum rating. Some of the key initiatives that made the township eligible for the recognition include an array of initiatives such as integrated land use, compact city development, specifically earmarked public green and open spaces that account for up to 35% of the total area, 100% green buildings, metro rail connectivity, etc.
Emerging Trends and Opportunities in GIFT City, Gandhinagar
As India’s financial gateway for international trade, the township is rapidly turning into a global hub for IT, fintech and allied sectors.
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Commercial Real Estate
Blackstone – the global leader in real estate investing has a prestigious project named Fintech One in the township. Sprawling across 400,000 sq. ft., 40% of the facility was already sold out in less than one year.
As of now, 23 multinational banks have offices in the township. They include Barclays – one of the oldest banks in the world, HSBC, J P Morgan, Deutsche Bank and Standard Chartered Bank. Tech giants, IBM and Capgemini have already established their offices in GIFT City whereas Google is all set to set up their facility as well in the immediate future.
In addition to these, there are 35 fintech companies, two international stock exchanges, India’s first international bullion exchange and two Australian universities which are present in the township. Of the 886 acres that is currently being developed, the area allocated to Special Economic Zone (SEZ) constitutes 261 acres.
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Residential Real Estate
As one of the best investment destinations in Gujarat, prominent residential real estate developers in the country are creating living spaces in GIFT City. As of 2023, 10 developers are building over 4,000 residential units in the township including SOBHA Limited. As already mentioned, SOBHA has two prestigious projects there, SOBHA Dream Heights and SOBHA Avalon. While the former has been completely sold out, the latter has limited premium units available.
As a well-planned township, it has clearly earmarked areas for commercial, residential, and recreational purposes. For the residents, GIFT City offers world-class leisure areas, educational institutions, top-notch healthcare facilities, the GIFT Club – a swanky clubhouse, and well-known retail spaces.
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Retail and Entertainment
Shopping centres and entertainment hubs are integral to any township. As a well-planned, mixed-use township, it has a plethora of avenues for shopping and entertainment. With multinational corporations operating from the hub, there are thousands of well-paid employees who would prefer to make the township their home. As a result, global retail chains, iconic names in the entertainment industry and multinational brands are making a beeline for GIFT City to make their presence there in the near future.
Challenges and Considerations in GIFT City, Gandhinagar
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Infrastructure Development and Challenges
In terms of infrastructure development, GIFT City, though progressing at a considerable speed, needs to pace up the developmental activities. For instance, even after 12 years since land was acquired for the project the township is still a work in progress.
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Economic and Market Fluctuations
Just like anywhere else, both global and local market fluctuations and downfalls affect GIFT City as well. In addition to this, the township’s reputation is causing fierce competition in the market – a concern for new entrants who have to compete with already established players with years of experience in the market.
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Regulatory and Legal Challenges
While there are quite a few advantages in GIFT City as far as regulatory norms are concerned, understanding the specific regulatory norms and rules can be complex. Hiring the expertise of legal professionals will invariably add to the overall cost as well as increase the complexity of the investments.
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Sustainability and Environmental Impact
Conceived as a sustainable and green mixed-use township, the township has stringent policies in place. As a result, builders must adhere to the prescribed policies in order to obtain approvals. This in turn, must be causing slight delays in sanctions and approvals.
Future Investment and Growth Prospects
As India’s upcoming economic and financial hub, GIFT City holds tremendous growth potential for the future. With the process of acquiring more land underway, the township is to be expanded to close to 2,300 acres from the current 886 acres in the near future. This indeed, is good news for both global and Indian investors.
With government of India’s backing and investment friendly policies, GIFT City is already enjoying the status of India’s finance and technology gateway for the world. Currently, the world’s leading real estate developer, Blackstone, has a 4000,000 sq. ft. property in the township. In addition to this, India’s top developers including SOBHA Limited is developing residential properties in GIFT City, scheduled to be completed in the near future.
While GIFT City is alluring as an investment destination with its unique advantages, strategic location, and immense growth prospects, the basic rules of investing such as extensive research and meticulous planning are integral to succeed as an investor in GIFT City, Gujarat.
Final Thoughts
GIFT City in Gandhinagar, Gujarat, is a unique initiative that has been witnessing unprecedented interest from global organisations. As of now, GIFT City has dozens of international banks, fintech companies and tech giants including Barclays, HSBC, IBM, Capgemini, and the likes. With immense growth prospects, the future of GIFT City is bright.
If you are planning to buy a residential property in GIFT City for the future, you have a perfect choice in SOBHA Avalon. Featuring above-class amenities and offering spectacular views, SOBHA Avalon 1, 1.5, 2 and 3 BHK units. Owing to increased demand, only limited premium units are now available in SOBHA Avalon.
Featuring an outdoor gym, swimming pool, meditation deck, clubhouse, coworking space and more, SOBHA Avalon lets you lead a lifestyle that ideally balances work and play. What is more, it comes from India’s most trusted developer. Invest now in SOBHA Avalon and reap the benefits in the future.
FAQs
1. Is GIFT City good for investment?
GIFT City is a unique initiative by the government of Gujarat. As the finance and technology gateway of India for the world, GIFT City holds tremendous investment potential. Already housing some of the world’s iconic financial institutions and banks, GIFT City is good for investment.
2. Can you buy property in GIFT City?
GIFT City is estimated to have close to 5,000 residential units. Whie earlier, only those who work in GIFT City were allowed to buy residential property there, now any body can buy a home in GIFT City. SOBHA Avalon is the right choice for those who prefer to buy a home in GIFT City, Gujarat.
3. What is happening in GIFT City?
GIFT City is a unique initiative by the government of Gujarat. It has already earned the reputation as an investment destination for global companies. Currently, GIFT City is acquiring more land to expand it from the existing 886 acres to over 2,000 acres.
4. When will GIFT City be completed?
GIFT City is a prestigious project that is attracting prominent global organisations including fintech companies, banks, and IT giants. Currently, GIFT City is a work in progress. As per the official website of GIFT City, the first phase of the township will be completed by 2025, and the second phase by 2030.
