It started as a vision – of creating an International Financial Services Centre which would drive global business growth for India’s Banking Financial Services and Insurance sector (BFSI). Like all such large infrastructure projects, it has its real estate aspect, and while it has been some time in making the journey from conceptualization to creation, the Gujarat International Finance Tec-City (GIFT CITY), near Ahmedabad, Gujarat, is all set to provide Indian BFSI sector with an ideal platform to mark their presence in the global markets.
Just a few months down the line, during the next edition of the Vibrant Gujarat Global Summit in January 2017, we should see the formal launch of operations, providing a global footprint to India’s BFSI sector. Increased demand for commercial Real Estate is an apt barometer of economic growth and business sentiment. It also a driver for growth in residential real estate: generation of new jobs has a direct impact on enhanced demand for residential real estate.
When fully developed, GIFT City is expected to generate 5 lakh direct jobs and an equal numbers of indirect jobs. This underscores its importance: it is arguably, one of the very few projects in India with the potential to provide such large employment opportunities, which will positively impact demand for residential real estate in Ahmedabad. It will also create demand for commercial real estate to house ancillary industries which will grow as a result of activities that will be undertaken in GIFT City by India’s BFSI sector.
Present-day real estate has been impacted by economic growth and infrastructure development in Gujarat, Ahmedabad in particular has seen the direct impact of job creation on demand for real estate, the data so far has been encouraging. Employment generation and rising income levels have already been acting as a catalyst for the property market in Ahmedabad, and GIFT City will provide a quantum leap to the same.
The Hiranandani Group is among the real estate developers who are playing a role in creation of GIFT City, providing India’s BFSI sector with work spaces that are global, to drive their forays into the global market place. The on-going commercial real estate projects in GIFT City are being created by the leading players from India’s real estate development companies, to dove-tail perfectly with requirements of an IFSC. An IFSC, although located within India, offers the facility of acting like a ‘foreign operations office’, facilitating easy movement of capital. Financial Institutions will find it advantageous as it will help service foreign currency needs of their corporate clients.
The impact this will have on Ahmedabad’s real estate will be immense. “India’s financial sector is expected to grow increasingly larger, with a prospect of 10 to 11 million jobs by 2020. The Vision of GIFT CITY is creation of a world class financial city, which will offer an unrivalled business environment to global and local financial services enterprises. This business environment is being created by leading players from India’s real estate development companies, and the Hiranandani Group is playing its role by being among the first to provide ‘ready to move in work-spaces’ well before the next Vibrant Gujarat Global Summit takes place in January 2017.
We have seen the confidence of major players from India’s BFSI sector as regards their expectations of capital value appreciation as also rental values expected at the IFSC at GIFT City, especially when we pitched for sales of units in our project, Signature. We have welcomes some of India’s biggest players from the BFSI segment to ‘Signature’, the remaining spaces are being picked up. GIFT City is a project which will create leading-edge infrastructure, services and platforms and offer Financial services enterprises a significant competitive advantage to operate regionally and globally – with the corresponding success story for Ahmedabad’s real estate as well.
~ Niranjan Hiranandani is Founder & MD, Hiranandani Group. His recent initiative is Hiranandani Communities. He is the Founder and First President (Maharashtra), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.