Why Invest in GIFT City instead of Ahmedabad or Gandhinagar?

GIFT City investment offers a unique opportunity to capitalise on the world-class infrastructure, sustainability, tax benefits, and thriving financial ecosystem of India’s first operational greenfield smart city. NRIs, HNIs, professionals, and families prefer to invest in GIFT City, over Ahmedabad and Gandhinagar.

Choosing the right investment destination is key to securing long-term growth and profitability. GIFT City is a thriving economic powerhouse according to a recent Business Today article – with banking assets in its IFSC valued at over $65 billion and stock exchange turnovers hitting $101 billion as of September 2024. GIFT City investment offers you an unparalleled chance to be part of India’s rapidly growing financial and technological hub.

Unlike Ahmedabad or Gandhinagar, GIFT City combines world-class infrastructure, smart city features, and tax benefits – ensuring a seamless blend of growth, convenience, and sustainability for discerning investors like you.

What is GIFT City?

Gujarat International Finance Tec-City is India’s first operational greenfield smart city and global financial hub. Envisioned as a cutting-edge destination for business, it combines state-of-the-art infrastructure with innovative technology to create an ecosystem that supports financial and business services at an international scale.

Strategically located between Ahmedabad and Gandhinagar, the city offers unmatched connectivity and proximity to key urban centres, making it an ideal destination for investors. With its focus on creating sustainable and tech-enabled urban spaces, GIFT City provides opportunities that go beyond traditional real estate investments, ensuring long-term growth and value.

Key Features of GIFT City

This benchmark in modern urban development has features that go beyond the ordinary, to redefine smart living. When you invest in GIFT City, you benefit from its seamless integration of technology, sustainability, and global business opportunities – ensuring unmatched returns and convenience.

1. International Financial Services Centre (IFSC)

   India’s first IFSC allows companies to conduct international transactions in foreign currencies, offering a competitive edge in global finance. The International Financial Services Centres Authority (IFSCA) was recognised with the ‘Outstanding New Asian Regulatory and Technological Innovation in Financial Services’ award at the Asian Digital Finance Forum & Awards 2023 – highlighting its role as a trailblazer in advancing global financial innovation.

2. Special Economic Zone

   The multi-service SEZ provides tax incentives and regulatory benefits that foster business growth and attract domestic and international investments.

3. Smart City Infrastructure

   GIFT City is India’s first operational greenfield smart city, featuring advanced facilities such as underground utility tunnels and IoT-enabled city management systems for efficient urban living.

4. Walk-to-Work Concept

   GIFT City thoughtfully integrates residential and commercial spaces, ensuring convenience and reducing commute times for professionals.

5. Social Infrastructure

   Leading educational and healthcare institutions include Jamnabai Narsee School, Lilavati Multispeciality Hospital, along with other institutions that enhances the quality of life for residents and create a vibrant community.

   The University of Wollongong (UOW) and Deakin University, both esteemed Australian universities, have established campuses in GIFT City Gujarat – further strengthening its position as a hub for world-class education and fostering global opportunities.

Why GIFT City Outshines Ahmedabad and Gandhinagar?

The city stands as a beacon of innovation, sustainability, and economic opportunity. Unlike Ahmedabad or Gandhinagar, it offers a meticulously planned ecosystem that combines world-class infrastructure, robust government support, and thriving business environment. GIFT City investment ensures access to tax benefits, sustainable urban development, and diverse gateways for businesses and individuals.

1. Economic and Financial Opportunities in GIFT City

   The city’s strategic positioning and unique framework have been attracting investors and businesses alike. GIFT City investment positions you at the heart of a globally connected financial and technological hub, redefining modern urban living and business opportunities.

   Recent developments have cemented its status as a premier destination for global financial operations. The strategic goal of redirecting investments from centres like Dubai, Singapore, and London highlights its growing prominence. As highlighted during the Business Standard BFSI Summit, investors are increasingly preferring GIFT City, recognising its vast opportunities and robust infrastructure.

   GIFT City has recently collaborated with TiE (The Indus Entrepreneurs), a global non-profit organisation, to foster entrepreneurship and drive economic growth. This partnership will create employment opportunities and facilitate a robust business ecosystem, making the city an ideal choice for entrepreneurs and innovators. Such initiatives ensure that your GIFT City investments benefit from and contribute to a thriving entrepreneurial landscape.

2. World-class Infrastructure

   When you invest in GIFT City, you gain access to a meticulously planned urban layout designed to support business, sustainability, and high quality of life. Its infrastructure includes a state-of-the-art Command and Control Centre for real-time monitoring and incident tracking, ensuring uninterrupted utilities and safety. Its automated waste management system uses chutes, bins, and pipelines to reduce noise and emissions, creating a cleaner city. Utility tunnels house all essential systems like power, water, and sewage for seamless maintenance and services.

   The city offers potable water in every tap, sewage recycling, and advanced power infrastructure with centralised backups. District Cooling System eliminates outdoor AC units, reducing heat island effects and operational costs. The advanced data centre connects to global business hubs via 15 telecom operators, ensuring uptime and cutting-edge services. Lastly, the efficient transport system separates vehicular and pedestrian movements while integrating public transit, providing a congestion-free experience.

3. Real Estate Prospects

   Offering a unique combination of commercial, residential, and mixed-use developments, real estate in GIFT City is designed to meet global standards. With rapidly increasing property values and cutting-edge facilities, GIFT City investment is ideal for long-term growth and profitability.

   Property Price Increase: Over the past five years, property prices have surged by 74%, with land prices rising from ₹4300 per sq ft to ₹7500 per sq ft

   Rental Growth: Residential rental prices have also increased over the past 5 years by 40%, moving from ₹25,000 per month to ₹35,000 per month in 2024. Similarly, commercial office space rentals have seen a 32% increase during the same period.

   Current Property Values: Residential capital values were ₹8200 per sq ft in 2024, reflecting a significant rise from ₹4700 per sq ft in 2019

   Commercial Lease Rates: Lease rates for commercial office spaces vary between ₹60-80 per sq ft in the SEZ area and ₹50-65 per sq ft in the non-SEZ area

   Market Demand and Investor Interest: Following recent policy changes that allow liquor consumption in certain establishments, there has been an uptick in residential sales and a corresponding increase in property prices by 10-20%, due to higher demand from investors

4. Employment Opportunities

   GIFT City Gujarat is rapidly emerging as a significant employment hub in India, particularly in the financial services and technology sectors. As of January 2025, here are some key insights into the employment opportunities available in GIFT City.

   The upcoming International Fintech Innovation Hub – in partnership with the Asian Development Bank (ADB) – will focus on creating a talent pool in fintech, through collaborations with renowned international and Indian institutes.

   Currently, GIFT City hosts over 100 fintech firms, employing more than 25,000 professionals. With employment expected to reach 1.5 lakh in the next five years, many opportunities in finance and technology sectors will arise – creating immense growth potential for your career or business.

5. Government Support and Policies

   GIFT City represents a strategic initiative by the Indian and Gujarat governments to establish a global financial hub. The support and policies implemented by them have fostered an environment conducive to business growth and attracting foreign investment.

   Comprehensive Legal Framework

   The governments are developing a robust legal framework aimed at establishing GIFT City as a premier global hub for accounting and financial back-office functions. This will facilitate services related to accounting, auditing, and taxation – thereby enhancing its appeal to international firms.

   Tax Incentives

   Non-banking units in offshore derivative instruments (ODIs) benefit from tax alignment with banking units in IFSC, creating a level playing field and fostering healthy competition. This translates into enhanced operational efficiency for businesses.

   Offshore banking, ship and aircraft leasing, and fund management businesses in GIFT City enjoy extended tax holidays for 10 years. As an investor, you can benefit from reduced financial burden for many years, boosting profitability during critical growth phases.

   When you invest in GIFT City, a 15% subsidy on operational expenditure for five years enhances your ability to manage costs and reinvest in growth. For entities with gross fixed capital investment exceeding ₹2500 Mn., the subsidy is capped at ₹400 Mn., while those with investments below ₹2500 Mn. can avail up to ₹200 Mn.

   By exempting GIFT City entities from General Anti-Avoidance Rule (GAAR) provisions, the government has ensured simpler tax framework. This dedicated system eases compliance, resulting in a hassle-free experience while managing company finances.

   Regulatory Framework

   Streamlined regulations encourage Indian companies to conduct activities such as leasing ships and aircraft. This move aims to reduce reliance on foreign jurisdictions and promote domestic operations.

   Infrastructure Development

   GIFT City is supported by substantial investments in infrastructure development. The project encompasses plans for 62 million sq ft of built-up area, that includes commercial, residential, and social facilities. This integrated approach enhances the city’s attractiveness as a business destination.

6. Sustainability and Lifestyle

   Discerning professionals prefer to invest in GIFT City, to secure financial opportunities and adopt a lifestyle that aligns with modern sustainability standards. As a model for eco-friendly urban development, the city integrates green initiatives and resource-efficient systems, making it a superior choice compared to Ahmedabad or Gandhinagar.

   Green Initiatives: GIFT City has LEED-certified buildings that follow global energy efficiency standards, reducing energy consumption and operational costs. India’s first District Cooling System (DCS) further enhances energy efficiency, by lowering usage by up to 30% compared to conventional methods.

   Resource and Waste Management: The city prioritises renewable energy sources, like solar power, and implements water conservation techniques, including rainwater harvesting and wastewater recycling. Its automated waste management system ensures cleanliness and eco-friendly waste disposal.

Challenges of Investing in Ahmedabad and Gandhinagar

While comparing GIFT City vs Ahmedabad, certain challenges are apparent, such as overcrowding and urban congestion, which strain infrastructure and affect quality of life. Though Gandhinagar is organised, it lacks the favourable government policies and global business appeal needed for modern enterprises – highlighting the advantages in GIFT City vs Gandhinagar.

Both cities rely on traditional infrastructure, which may not match GIFT City’s futuristic approach that integrates advanced technology, sustainable systems, and globally connected ecosystem.

Conclusion

GIFT City Gujarat champions innovation and sustainability, while offering diverse economic opportunities. Be it GIFT City vs Ahmedabad or GIFT City vs Gandhinagar, investors prefer the meticulously planned ecosystem that combines world-class infrastructure, robust government support, and thriving business environment.

The city offers the perfect balance of work-life harmony to professionals and families, with its advanced social infrastructure, top-tier educational & healthcare institutions, and recreational facilities. Those evaluating GIFT City vs Ahmedabad or GIFT City vs Gandhinagar, can consider its luxury apartments, modern living, and unmatched growth potential.

FAQs

1. What makes GIFT City a better investment option compared to Ahmedabad or Gandhinagar?

GIFT City is a better investment option compared to Ahmedabad or Gandhinagar as it offers world-class infrastructure, sustainability-focused development, smart city features, and unmatched global connectivity, ensuring superior growth potential and convenience. While evaluating GIFT City vs Ahmedabad and GIFT City vs Gandhinagar, the advantages in terms of futuristic planning and global business appeal become evident.

2. Are there any tax benefits for businesses or residents in GIFT City?

Yes, there are tax benefits for business or residents in GIFT City, such as tax holidays and exemptions from GST and General Anti-Avoidance Rule (GAAR) provisions – enhancing profitability for businesses and residents. Those looking to invest in GIFT City can consider these benefits.

3. Can individuals invest in residential properties in GIFT City?

Yes, individuals can invest in residential properties in GIFT City, such as SOBHA Elysia that offers luxury apartments with excellent growth potential and modern amenities, making it a rewarding choice for property investments.

4. What industries or companies are already operating in GIFT City?

Industries and companies that are already operating in GIFT City include over 100 fintech firms such as CRED, PhonePe; banks such as SBI and ICICI, and tech giants like Facebook and TCS – creating a vibrant hub for finance, technology, and global trade.

5. Is GIFT City suitable for startups and small businesses?

Yes, GIFT City is suitable for startups and small businesses, because of its tax incentives, robust infrastructure, and supportive policies.

6. What kind of infrastructure and facilities does GIFT City offer?

GIFT City offers highly advanced infrastructure and facilities – such as smart utilities, District Cooling System, advanced transport networks, underground utility tunnels, and social infrastructure like schools, hospitals, and green spaces. These set it apart in the comparison of GIFT City vs Ahmedabad and GIFT City vs Gandhinagar.

7. How is GIFT City connected to Ahmedabad and Gandhinagar?

GIFT City is connected to Ahmedabad and Gandhinagar through excellent road and metro networks, such as Sarkhej-Gandhinagar Highway and the Delhi-Mumbai Highway (NH48). This ensures seamless access to Ahmedabad International airport and key areas of these cities.

8. What are the future growth prospects and expansion plans for GIFT City?

The future growth prospects and expansion plans for GIFT City include expanding its state-of-the-art infrastructure, creating over 1.5 lakh jobs in the next five years, and fostering global collaborations to position itself as a leading financial and technological hub on the international stage.

9. Are property prices in GIFT City higher or more affordable than Ahmedabad or Gandhinagar?

Property prices in GIFT City are higher than those in Ahmedabad or Gandhinagar, due to heavy demand, world-class infrastructure, walk-to-work urban layout, luxury residences, and better ROI.

10. What lifestyle options are available for residents in GIFT City?

Lifestyle options available for residents in GIFT City include vibrant social infrastructure promoting work-life balance – for example, GIFT City Club, Grand Mercure, Pizza Central, Wall Street Cafe, Hangover, and more. While comparing GIFT City vs Ahmedabad and GIFT City vs Gandhinagar, it stands out for innovative urban design and advanced facilities tailored for contemporary living.