Property mela eyes Rs1000 crore business

Gujarat Institute of Housing and Estate Developers (Gihed) is expecting Rs1,000-crore business during its two-day property exhibition at Goregaon starting on Saturday.

Gihed president Suresh Patel said a huge number of Gujaratis are staying in Mumbai and they are the main contributor to the city’s development. “Most of them want to have their own houses in Gujarat even though they are doing business in Mumbai. It will be a wise decision for them. Because the Gujarat government has undertaken several developmental projects in the state, including metro rail and bullet train. With each passing day, many more industries are coming which will create huge job opportunities for people. That apart, Mumbai’s property rates are beyond the horizon of the common man,” he said.

Gihed is offering affordable houses to Mumbaikars. The cost of a 2BHK (1,200sqft) flat in a posh and high-end locality of Ahmedabad will be Rs30 lakh. The property rate per sqft will be between Rs2,000 and Rs5,500. Nearly, 500 prominent developers from Gujarat are participating in this exhibition.

Patel further claimed that property prices in Gujarat were going to appreciate by 15%-20% each year. “There is sluggishness in the Mumbai real estate market where buyers are not getting any additional value. Besides, in cities like Ahmedabad and Gandhinagar, there is no fear of power shortage and law and order problem. The infrastructure of both the cities has improved a lot. Both cities will be connected to Mumbai by fast mode of transport like bullet rain. By this said train, people can reach Mumbai in two hours,” he said.

Dinesh Patel, president of the Confederation of Real Estate Developers Association of India (Credai) said most Gujaratis are looking for a second house or a secured investment option.

Real estate experts said this exhibition would give tough time to Mumbai developers who were already reeling from the pressure of unsold inventory, high interest rate and increased input costs.