A plot in Ahmedabad has been sold for a staggering Rs 3.4 lakh per square yard, setting a new benchmark for land prices in the state. This landmark deal, involving a 4,500-square-yard plot located just 700 metres from Iskcon Cross Road on SG Road, has propelled the total value of the transaction to an astonishing Rs 153 crore.
Industry experts are hailing this as the most expensive land transaction in Gujarat’s history, surpassing the previous record of Rs 2.75 lakh per square yard set in mid-2021 for a plot near Sindhu Bhavan Road (SBR) on SG Highway. Even the Ambli-Bopal Road, which witnessed two plots selling for around Rs 3 lakh per square yard seven months ago, falls short of this new benchmark.
The identity of the buyer remains undisclosed, but sources reveal that it is a developer specialising in warehousing. The strategically located plot, bordered by two wide roads, is poised to undergo a significant transformation into a high-rise commercial project. The sky-high price tag reflects the developer’s confidence in the project’s potential to generate substantial returns.
The deal, currently in the ‘agreement to sale’ stage, is undergoing the finalisation process with the necessary documentation (dastavej) being prepared. Jigar Mota, Director and Head of Transactions (Gujarat) at Cushman and Wakefield, shed light on the factors driving the surge in plot prices along SG Highway, particularly around the Iskcon circle. “Post-COVID, the SG Highway has witnessed a meteoric rise in plot prices from around Rs 2 lakh per square yard, fueled by escalating demand for premium commercial spaces,” Mota explained.
He further emphasised that, given the steep land prices in this area, high-end commercial projects are the most viable investment option. “Moreover, there is a genuine demand for quality office space,” Mota added.
However, experts caution against interpreting this sale as a general indicator of property rates in the area. Dhruv Patel, President of CREDAI Ahmedabad GIHED, cautioned that land prices are highly dependent on specific factors such as location and road width. “An adjacent plot might not fetch the same price, depending on its unique features,” Patel explained.
Despite this caveat, Patel acknowledged that the demand for office space along SG Highway is indeed on an upward trajectory, reflecting the growing business activity in the region. This trend is likely to continue, further fueling the demand for premium commercial spaces and potentially leading to more record-breaking deals in the future.