GIFT City a multi-service Special Economic Zone has the country's maiden International Financial Services Centre (IFSC) offering a host of fiscal incentives such as zero GST, a 10-year tax holiday, investments in USD and more.
With 55+ AIFs and 30+ fintech registered in the past two years, Gift City is on the expansion mode. About 4500 residential units are currently being built. GIFT City also plans to undertake development of a Central Park, recreational areas, malls, theatres and other entertainment zones. Currently a school is already functional and a hospital is under construction.
The four villages of Shahpur, Ratanpur, Lavarpur and Pirojpur with a combined estimated population of 25,000 were selected for the expansion since they are in the immediate vicinity of GIFT City. “There will be no relocation of the villagers and the villages will be part of the expanded GIFT City,” Tapan Ray, MD & CEO of GIFT City said.
The original master plan of the GIFT City will be “tweaked” to assimilate it with the proposed expansion. This will be GIFT City’s first major expansion since it was conceptualised and will expand the project area of 1,065 acres to more than thrice its existing size to approximately 3,365 acres.
THE FINANCIAL METROPOLIS
A Greenfield project, with focus on sustainable and advanced the-art infrastructure, the development includes commercial property options from modern offices and retail outlets to coworking spaces and recreational facilities. The city has been successful in attracting several global banking & financial services companies and players from sectors like R&D, institutes and aircraft leasing. Over 450 registered entities have setup offices in Gift City. Furthermore, the government plans to set up data embassies in GIFT IFSC for countries “looking for digital continuity solutions”, which would enable a robust digital infrastructure at GIFT IFSC.
THE RESIDENTIAL OUTCOMES
Initially, the residential ownership was restricted to only those working at GIFT City which was later opened to outsiders to own houses, but occupants have to be those working at GIFT City. This has been further relaxed allowing anyone to own and occupy houses in the project and a cap of such houses is set at 5,000 residential units. Following the opening up, many industrialists, CEOs, and top executive have bought apartments in Gift City. The developers from Gujarat and other cities too are making their presence felt and launching residential projects here. As per the authorities, over 30 lakh square feet of residential projects have been approved in the past year.
INFRASTRUCTURE THE DIFFERENTIATOR
True to being the financial business district with world-class infrastructure, Gift City is developed as a “digging free city” by placing all the utilities in a tunnel across the city so that there is no need to excavate the roads in future for repair/maintenance /renovation/ up gradation of any utility. The provisions are made in the tunnel for smooth access, separation of utilities, proper drainage, lighting, and other long-term concerns, such as maintenance and security. It has a fully Automatic District Cooling System (DCS), fully integrated & automatic waste collection, segregation & disposal system at city level and uses unique IoT to monitor to manage city Infrastructure. A Zero discharge city with waste water recycled & used for landscape irrigation, it also has dual power supply at Power Station with building level Back-up power facility and fault tolerant optical fiber ring Infrastructure.
REAL ESTATE POTENTIAL
Gift City's close proximity to Gujarat's commercial hub, Ahmedabad as well as the country’s finance capital Mumbai along with being in the vicinity of major transportation hubs, such as Ahmedabad international airport, Metro and Bullet Train Terminus and National Highway 48 connecting Delhi, Jaipur, Ahmedabad, Surat, Mumbai, Pune, Bengaluru, and Chennai, gives it a distinct supportive ecosystem for the businesses. It is also becoming a hub for start-ups who are leveraging its resources for their growth.
Investing in real estate in Gift City can be a lucrative opportunity given the range of residential and commercial properties that can provide attractive RoI. The residential options, including apartments, villas, and penthouses, designed with modern amenities and facilities to cater to the diverse clientele. These homes cost at least 30-40 per cent more than those outside of the Gift city area but also promise higher returns.
While Gift City presents attractive real estate investment opportunities, fluctuations in demand and supply can impact property values and rental returns. Being a specialized economic zone, any regulatory changes may also affect the investment scenario and in turn the real estate. However, with the development being done in phases and proposed expansion of the city, this is the right time for investment to reap the benefits of development later. The business-friendly environment and growing employment prospects will make Gift city one of the sought after real estate in the years to come.
SOME LATEST DEVELOPMENTS
GIFT City attracts 4,103 residential units as 2-year-long sunset clause ends
Akshay Kumar acquires riverfront-facing duplex apartment spanning approximately 8,000 square feet, complete with its own private swimming pool at Savvy Marina, Gift City.
Australia’s Deakin University has signed an agreement with Nila Spaces Ltd to set up its 25,000 square feet international branch campus. In addition, University of Wollongong will also start classes in 2024
GIFT City will build three multilevel car parkings to accommodate 5,000 cars. The project was awarded to Gandhinagar-based Nakshatra Group. The first multilevel park that can accommodate 1,150 cars will be built near GIFT One.
Morgan Stanley is the first global fund setting up base at International Financial Services Centre (IFSC) at GIFT City.
Singapore’s RBB Ship Chartering Ltd became the first maritime player to set up a ship-leasing business at the International Financial Services Centre (IFSC) at GIFT City.
Space PSU NewSpace India Limited (NSIL), will soon be getting an office at the Gujarat International Finance TecCity (Gift City).
Bank of Baroda is one of the early entrants to set up operations in GIFT City.
GIFT City’s expansion is on the cards, because of the increased demand, as almost 50 per cent of the area has been allotted and to avoid haphazard development in the peripheral area. Tapan Ray MD & CEO of GIFT City