Aligned with Indias sustained economic growth, the financial service sector in India is also expanding at an unprecedented rate. Presently it employs over 3 million and contributes over 5% of the national GDP with a market capitalization of around INR 200,000 crores. In the coming time, the significance of financial sector is expected to further ramp up with the market capitalization expected to become five-fold by 2020.
In spite of rapidly evolving financial sector, Indian cities still lag behind some of the globally acknowledged financial cities such as London, New York, Dubai and Singapore etc. One of the principle factors behind it could be attributed to inability of Indian cities to deliver world class infrastructure in the form of top quality office space, high internet and telephone connectivity and world class lifestyle opportunities.
Realizing the gap, India is building a world class Global Financial City namely Gujarat International Finance Tech (GIFT) city, which is located between Ahmedabad and Gandhinagar city. Once completed, the project is expected generate 1 million new jobs, equally split into direct and indirect.
Once completed, GIFT will not only spearhead a new dimension of economic growth but will also give a great boost to the residential and realty market of the region. Captured below are the five factors that explain how GIFT will positively impact the realty market of the region.
- One Million new Jobs: GIFT is expected to create top quality one million new jobs. This will aggressively drive demand for quality residential units. Besides GIFT which will have land allocated for residential project, a large part of demand will also be transferred to nearby Gandhi Nagar, thereby boosting its residential market.
- World class infrastructure: The overall budget of GIFT has been estimated at INR 70,000 crores. Out of which, INR 3,710 crores will be allocated to core infrastructure such as bridges and roadways. Likewise, INR 30,000 crores will be allocated to core utilities such as power generation and cooling systems. This will culminate in creating a world class infrastructure and civic amenities that will indirectly boost demand for residential projects as well. For Phase I infrastructure development funds have been successfully raised and work has been in full progress.
- Commercial Market: GIFTs attractive price will attract large volume of international and national financial companies, thereby boosting the commercial market. Already many towers are operational and various companies have started taking up offices.
- World Class Convention Center: A world class convention center has been proposed inside GIFT. Evidences from the recent past has indicated that top quality convention centers have been engine of economic growth through increased commercial, tourism and retail activities. Instances from places Dubai and Singapore has indicated how convention centers have been instrumental in catapulting cities to new heights. The upcoming convention center will give a significant edge to GIFT and nearby areas in catalyzing more residential activities.
- Relaxed Norm: It is proposed that certain norms will be relaxed in GIFT in order to attract top quality human capital. Gujarat has been a dry state and liquor has not been allowed in the state. However, the government authorities are contemplating to relax the norm in case of GIFT.