Introduction
GIFT City, Gujarat's dynamic financial hub, struggles with its residential scene. Figures from Propequity show a big gap. Almost 2,100 properties out of 3,168 stand unsold by the end of July 2025, marking a 67% unsold rate. This imbalance stands out even as commercial sectors flourish.
The Residential Inventory Challenge
Let's examine the data. The total residential stock hit 3,168 units, but sales aren't following suit. Over two-thirds remain unsold. Developers poured out a lot of homes, but buyers don't seem interested. Prices have risen, beyond ₹9,500 per square foot—that’s double what it was in 2020. You'd expect high prices to scare people away, but there's more to the story.
The cost surge reflects GIFT City's appeal as a modern, integrated city. Its impressive infrastructure, with top amenities and connectivity, hasn't helped. The pile-up of unsold units raises caution. Could this pricing bubble burst? Analysts ponder if changes are coming.
Contrasting Commercial Success
Looking at commercial real estate, the picture changes. According to Cushman & Wakefield, GIFT City grabbed 70% of Ahmedabad's leasing volume in Q2 2025. Rental rates climbed 3-5% from the prior quarter. Businesses prefer it for tax benefits and a global vibe.
This split baffles many. Residential units lag while offices thrive. Maybe residential demand lags job growth, which hasn't kicked in fully. Or maybe buyers are waiting for lower prices in the glut.
Factors Behind the Mismatch
Several reasons shape this situation:
- Oversupply Rush: Developers placed big bets on GIFT City’s future, flooding the market faster than demand could handle.
- High Expectations: Prices went up quickly, but local incomes haven't kept pace.
- Investor Hesitation: Many view GIFT City as a solid investment, but current inventory levels have them pausing.
- Economic Shifts: Broader market trends, like interest rates or policy shifts, shape buyer decisions.
She, a local real estate expert, mentions that commercial spaces attract firms worldwide, but residential relies more on local demand.
Looking Ahead
So, what lies ahead? GIFT City’s authorities might adjust their strategies to boost residential sales. Discounts, incentives, or possibly lowering prices could help. The city wants to become a well-rounded urban centre, not just a business park.
Investors should keep an eye on updates. That 67% unsold rate might drop if demand picks up. For now, it shows risks in fast development. Balancing supply with actual needs is key.
In summary, GIFT City’s residential market faces challenges with high inventory, despite rising prices. Commercial sectors thrive, and residential revival needs focused efforts. Monitor upcoming periods for changes.