How people are getting fooled into buying overvalued properties in the surburbs of big cities like Ahmedabad. Price in the heart of the city is most valuable yet people are getting suckered into buying properties in the surrounding periphery of Ah

[Call Centre]

Ahmedabad which may not appreciate that much. The builder lobby is
cornering the land and so they charge a high price to sell you the
land. But if you decide to sell your property within a few years you
may find it hard to sell at even 20 percent lower than what the
builder is quoting. In large schemes the entire scheme may not be sold
and the builder/developer could be holding onto the property and
quoting high rates. Much higher than you may have purchased it a few
years back. So, on paper you feel happy. But if you actually go to
sell it you may not be able to sell it at even 20 percent below the
quoted price. Therefore, it is better to invest in a residential
scheme within Ahmedabad city in prime areas like Ellisbridge,
Navrangpura etc. You may buy land in the surburbs and outer reaches of
Ahmedabad but when you go to sell you may not get a buyer right away.
Also, if the FSI goes up in those regions the FSI within Ahmedabad
will also go up. If FSI within Ahmedabad doesn't go up than it will be
catastrophic for the BJP govt. They will have a hard time trying to
win the next general elections if the lose the confidence of the
people of Ahmedabad. So, if FSI in the outer regions goes up but FSI
in the heart of the city areas like Ellisbridge and Navrangpura don't
go up than it will be catastrophic for the BJP. There are talks to
increase the FSI in the outer regions from as low as .3 to maybe .8 or
1. In the city areas the FSI is already 2.25 or almost 8 times more
than the outer regions. That is why property prices are also about 7
to 8 times higher. But if FSI in the outer regions goes up than the
FSI in the inner city areas like Ellisbridge and Navrangpura should
also go up from current 2.25 to maybe 3 or even 4. There is talk to
maybe even increasing it to 5. This would further shoot up the prices
in the prime areas of Ellisbridge and Navrangpura from 1,25,000 per
square yard to over 2,00,000 per square yard or even much higher if
FSI goes to 4 or more.

My suggestion is that if you are buying property for 5 years to 10
years you can still buy within Ahmedabad city and it will have a real
value when you go to sell. Only if you are interested in buying a
property for over 20 years should you consider going outside in the
periphery areas.

[chessplayer]

If and when Modi comes back to power in the next state elections to be
held next month he will in all likelihood raise the FSI overall. That
means raise the FSI not just in the periphery surrounding areas in
Ahmedabad from .3 to at least .8 or 1 and from .8 to about 1.8 etc.
but even within the heart of Ahmedabad where the FSI is already at
2.25 or higher to 3 or higher. Maybe even 4 or 5. If it becomes 4 or 5
it will be fantastic as those living in the proper part of Ahmedabad
will see a massive rise in property prices. In the prime areas like
Ellisbridge and Navrangpura the price will hit 2,00,000 (2 lakhs) per
square yard if the FSI goes up to lets say 3.5. If it crosses 4 it
could go to 2,25,000 per square yard and if it goes to 5 or more it
could cross 3,00,000 rupees per square yard. It would be a phenomenal
rise. It would actually be a boon for people wanting to buy flats as
the prices of flats may actually come down. The price of land would go
up and people among the upper middle class and rich who own land would
be happy. The prices of flats would come down as more flats could be
built on the same land so middle class and lower middle class people
would be happy. It would be a win win situation for all.

[Call Centre]

> would be happy. It would be a win win situation for all.- Hide quoted text -
>
> - Show quoted text -

Property values in the prime areas of Ellisbridge and Navrangpura have
reached 1,35,000 rupees per square especially in the areas of C.G.
road and nearby areas which are considered prime residential areas as
well as prime commercial areas. The property prices in the periphery
regions of Ahmedabad are mainly going up on hype. FSI is much lower
there and even if FSI increases in some areas real development will
still take a long time. The true value of the properties still exists
mainly in the prime areas of Ahmedabad. In the periphery and outer
regions it is mainly on hype considering the massive increment that
has taken place in the last 4 to 5 years. So, a plot in a popular
scheme like Gokuldham should be selling for only 10,000 rupees per
square yard but the developer is asking 15,000 rupees per square yard.
At the most one should pay 12,000 rupees per square yard and not a
paise more. But hype is the name of the game and people are getting
suckered into paying 14,000 to 15,000 rupees per square yard. On top
of that you pay certain charges and once stamp and registration plus
service fees are added your cost comes to 16,500 to 17,500 rupees per
square yard. So, you are already paying 50 % more than what the land
is currently worth. Your gain becomes limited from that point onwards.
But land in the prime areas of Ahmedabad like Ellisbridge and
Navrangpura is like Gold. You will always get its real value. Land in
these periphery areas is like buying jewelry. You pay more when you
buy but when you go to sell you may even end up getting less than what
you paid for.