A plot of around 4,000 square yards has fetched a record price of Rs 3.25 lakh per square yard in an upmarket Ahmedabad suburb.
The plot on SG Road, located between Iskcon Circle and Prahladnagar, has reportedly been bought by an investor, who is in talks with a developer for a joint venture project on the land. Realty experts also say that this is the first major land deal after the jantri revision in mid-April.
People close to the deal called it the highest rate for a property in the city so far. Earlier, a plot on the Iskcon-Ambli Road sold at Rs 3.11 lakh per square yard and a farm near Iskcon Circle was purchased at around Rs 3 lakh per square yard.
“The Ahmedabad real estate market saw some land deals on the city outskirts and some joint venture deals near Vaishnodevi Circle and Shilaj,” said a real estate consultant.
Real estate experts said that high land prices are affecting the viability of projects now.
“Land prices have increased sharply in the last decade but there is no proportionate rise in finished property prices. Construction costs too have gone up, affecting margins. Some high-priced deals in the recent past have seen some developers facing problems initially,” a realty expert said.
He added, “Overall, the market has been slow over the last three months and high interest rates are affecting sales. However, sentiments for Ahmedabad infrastructure development and economic growth are positive so developers are taking calculated risks.”
He added that prices have remained higher on the SG Road stretch due to less plots being available.