Corporate India fuels Rajkot realty market

REGION REALTY

Rajkot, the gateway to the Saurashtra-Kutch region, is on a realty high. Recent days have seen Corporate India come calling to this erstwhile capital of the princely state of Saurashtra.

Leading the way is ADAG-AFL, which bought a shut-down property sometime back. Sterling Hospitals followed suit with plans to make the city one of its business hubs.

And now, corporate biggies and real estate majors including Reliance, Tata, Adani, Sahara, Rahejas, DLF, Parshwanath, Oxane, Merlin, Niho Constructions, G K Developers, Aevens Group, and Pyramid Group too have put Rajkot on their radar.

"Their choice by and large falls in the West Rajkot, mainly in the areas of Kalawad Road, 150 Foot Ring Road, Raiya Road, Jamnagar Road, Dr Yagnik Road, Amin Marg, and Sardarnagar Road," says Jatin Bhindora, a property consultant from Rajkot.

The real estate market is seeing heady and exciting days and both commercial and residential projects are finding equal favour, he says. While the Rahejas, Oxane and Sahara are keen to invest in residential projects, DLF, Niho, Parsvanath, Merlin are opting for commercial properties.

According to Bhindora, the Rahejas have also come forward to build a hyper city - a commercial property project that includes shopping malls, bowling alley, go carting, and multiplex.

These developments are likely to change the real estate scene in Rajkot, which presently is in the ratio of 30:70 in favour of residential property. The coming days may see the ratio changed to 40:60, feel real estate developers.

While realty players keen on developing residential complex prefer the land stretch between Kalawad and Jamnagar as a ring road is proposed in the area, players interested in establishing commercial properties want the areas of Kalawad Road, 150 Ring Road, Sardarnagar Main Road, Amin Marg, etc.

Explaining the reason behind this boom and factors, which have catalysed the sudden demand, Bhindora says, "The annual appreciation of the property here is in the range of 30-35 per cent, which is a better return on the investment, compared with other investment options. The city, being the capital destination of the region, already enjoys adequate infrastructure and education facilities, easy availability of skilled manpower at affordable wages that make it an attractive destination."

However, with regard to the deals still being in the pipeline, Abhay Suchak of Ashutosh Trade, a land development firm, says, "Town planning of Rajkot and the infrastructure and real estate boom in the city are not going hand in hand. Town planning is pretty slow, and as a result, the deals are yet to take shape." Suchak adds that due to this, investments worth Rs 1,000 crore are waiting to flow in the city.

Some of the plans that have already been firmed up include those of Shell, which has bought a property opposite Gaisford talkies.

Developers like J P Infrastructure, G K Developers and Reliance have booked space at 150 Foot Ring Road and at Gaisford Talkies. Meanwhile, Sahara's city project at Kuvadva road is awaiting environmental clearance.

While Tatas are looking for prime property in the city area for their budget hotel project, Indione, Adanis are scouting for land on Kuvavdva Road for their CNG gas station.

Even a couple of Pune, Mumbai and Ahmedabad-based BPO-ITeS companies are looking for a carpet area of around 2,000 yards in the heart of the city.

Besides, restaurant chains like Dosa King, Pizza Hut, McDonalds, and banks like Yes Bank, Cosmos Bank, ABN Amro, Citibank are also planning to set up base here. "Even Kentucky Fried Chickens (KFC) is looking for a property in the city, as there are not enough non-vegetarian food joints here," claims Bhindora.

Apart from shopping mall majors like Max Lifestyle and Spencer, local textiles brands like Radhika Sarees and Ashopalav are on the lookout for properties in the city.

In fact, RadioMirchi has already leased out a property in the city on Kalawad Road, which is located at Radhika House opposite Babyland's Hostel, says Bhindora.