A’bad Realty Sees An Uptick In Built-To-Lease Model

Source: Ahmedabad Mirror

Many Developers Opting For Format Where Units In Commercial Projects Are Given On Rent Or For Lease Instead Of Being Sold

The rise in demand for commercial space in Ahmedabad’s real estate market has resulted in a new trend in which developers are setting up such projects exclusively to put them up for lease or to rent instead of selling them. As per realty experts, the ‘Built To Rent’ (BTR) is a popular model in real estate in many foreign countries and some bigger Indian cities like Mumbai, Bengaluru and Delhi among others.

A source in the sector said many developers are coming up with such BTR projects mostly in the western part of the city, on SG Highway and beyond. Take the case of Vishwanath Realtor who is coming up with a 1.5 lakh square feet (sq ft) 10-floor commercial building in Okaf near LJ College. Founder of Vishwanath Realtor, Dushyant Pandya said these days many companies want single-owner buildings on rent or lease so that the building is well maintained. “Since the last year, we have been getting inquiries for bigger office space and floorplates.” He said they decided to develop one such state-of-the-art commercial building wherein all the requirements of tenants, from property to pantry management, are done by one company. “Not only does this give us fixed rentals but the property value also appreciates considerably,” he said.

There are other developers whose BTR projects are midway and they are now scouting for more land parcels to come up with more such schemes in the city. A developer, on condition of anonymity, told Mirror, that they were developing a BTR project on Ambli-Bopal Road which is likely to be ready in a year or so from now.  “We are also looking for other land parcels for two more BTR projects,” said the developer. Explaining further he said companies from sectors like IT, engineering and many other corporates are looking for well-managed bigger and newer commercial spaces. “They don’t mind spending more for maintenance if they get good service as it brings more value to their business,” he said.

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Interestingly, the BTR concept is also gaining momentum in Gujarat International Finance Tec-City (GIFT City), Gandhinagar. The demand for such projects has also surged in the western part of Ahmedabad. Chairman of CREDAI Gujarat Youth Wing Parth Patel said these days developers are looking forward to developing a portfolio which includes BTR property that gives them fixed income, even when they aren’t doing construction. Patel said they too are scouting for small land parcels in the western part of the city to develop buildings as there is a requirement from doctors, corporates, IT, etc.