Lothal, one of the major cities of the Indus Valley Civilisation, and the Swaminarayan Temple attract a high number of tourists each year - and the strategic location of Bavla between Lothal and the bustling city of Ahmedabad have worked well for increasing the viability of the real estate
market at Bavla.
There are plenty of investment options available in Bavla - one can invest in plots as well as independent houses. Despite considerable appreciation in the capital values of land in the last three years, prices are still affordable. Many real estate companies have moved to this region and are offering residential non-agriculture (NA) plots measuring 5,000-17,000 sq ft at ticket sizes from Rs 21 lakh to Rs 1.4 crore.
Capital values for independent houses and villas vary depending on their sizes. One can choose anything from a one bedroom hall-kitchen (BHK) to a four BHK home. A usual one BHK apartment with a built-up area of 400 sq ft will cost Rs 11-13 lakh, while a two BHK apartment with a built-up area of 600 sq ft can fetch Rs 16-17 lakh. Also, a house with good specifications and a built-up area of 900 sq ft will cost Rs 29-31 lakh. The property prices in Bavla appreciated by over 40 per cent in 2013-14 after the announcement of a Metro corridor.
Bavla may sound like an obscure investment destination, but keeping in mind the progress made by Changodar and surrounding areas, this market has pretty decent prospects. With the declaration of Sanand as an industrial estate by the Gujarat Industrial Development Corporation (GIDC) and its inclusion in the territory of the Ahmedabad Urban Development Authority (AUDA), the focus of property buyers has moved towards Changodar and surrounding areas on the Ahmedabad-Bavla highway. What makes this region even more attractive to developers is the availability of large land parcels at relatively cheaper prices.
Growth is now moving towards Bavla. Its proximity to Ahmedabad and Sanand Industrial Estate, which is home to some large manufacturing companies including Tata's Nano plant, just 20 km away, has definitely strengthened the demand for residential apartments in Bavla. Once the proposed Phase-II of the Ahmedabad-Gandhinagar Metro reaches Changodar, Bavla's real estate market will be the biggest beneficiary.
Also, the presence of large pharmaceutical firms is drawing a lot of interest for residential properties. The local transport system is constantly improving, and over time Balva will start witnessing the early fruits of large-scale infrastructure developments.
The writer is CEO - Operations & International Director, JLL India