Ahmedabad’s land market has seen an upward climb in recent years, but a curious case of deflation has emerged along the riverfront.
The Ahmedabad Municipal Corporation (AMC) made the surprising decision to offer development rights for Sabarmati riverfront plots at significantly lower rates than many areas in western Ahmedabad, including plots recently sold by the AMC.
The move has raised eyebrows as the Prahladnagar Multilevel Parking Complex plot was evaluated at Rs 4.03 lakh per sq m last year. A plot on the western part of the Sabarmati Riverfront at Vallabh Sadan was assessed at Rs 3.08 lakh per sq m.
And yet, the AMC is gearing to sell development rights — rate allowing developers to use the property for a fixed period — on the much-coveted riverfront plots for just Rs 22,647 per sq m.
When the AMC-owned Sabarmati Riverfront Development Corporation Ltd. (SRFDCL) sells development rights, it doesn’t mean they are selling ownership. It implies selling the permission to develop the land according to specific guidelines, including building type, height, number of floors, design, and use for a fixed number of years.
The SRFDCL has reserved 1.75 lakh sq m of riverfront land, estimated at Rs 4,982.7 crore, mainly for commercial sale of development rights. It plans to sell development rights through long- and short-term leases. Development rights for plots average Rs 23,676 per sq m on the west bank. It is higher on the east bank at Rs 24,750 per sq m.
“This means that developers can get land for cheap to build offices or houses with a riverfront view,” said an AMC official. Another change in the Sabarmati Riverfront Land Disposal Policy 2024 is the revision of value zones. “The zones were reduced from eight to seven,” the official said, adding: “The period for long- and short-term leases is yet to be finalized, with opinions suggesting short-term leases may extend between 15 and 35 years.”
In 2016, plots were estimated at a premium, with one valued at Rs 10,000 per sq m and another at Rs 2.96 lakh per sq m. In 2024, the cost of land on the west bank ranges from Rs 2.50 lakh to Rs 3.22 lakh per sq m, marking a considerable decrease.