Will Upcoming Employment Zones In Gujarat Push Real Estate?
Gujarat property market is known to be driven by both domestic and non-resident Indian (NRI) investors. However, in recent past the affordable housing sales have witnessed a lag due to lack of demand, especially in Ahmedabad, Surat and Vadodara. While investors are waiting for a better market condition, fewer employment opportunities are keeping young investors at bay.
Now, in order to give a major thrust to ‘Vibrant Gujarat’ and its economy, the Centre recently approved five employment zones in Mundra and Kandla in Kutch district, Pipavav in Amreli, Alang in Bhavnagar, Hazira in Surat and Dahej in Bharuch, proposed by the shipping ministry. Almost Rs 2 lakh crore will be invested in these areas with over two lakh direct and around 10 lakh indirect jobs being created in the next five years.
Since government is promising international-standard infrastructure support to attract employment-oriented industries, the development agenda will also include housing and allied industries. Chemicals, petrochemicals, furniture, shipbuilding are some of the other sectors that will be developed in these areas. This might also push affordable housing policy, especially in urban areas which lies close to the approved employment zones as well as in areas where poor infrastructure and amenities scare away the buyers. Gujarat coastline, which is also one of the unique resources for the state, is also likely to be developed for industrial activities.
Taking a cue
The Gujarat International Finance (GIFT) City will be one of the major success stories for all the five zones to take a cue from for global infrastructure and development. The GIFT City was recently featured as one of emerging business hubs in the world. The area is known as business hub with approximately 12 leading Indian banks clocking foreign currency business transactions worth $12 billion. Currently, the special economic zone employs 8,000 people and is projected to generate 70,000 jobs by 2030.
A hub for affordable housing
Gujarat has submitted the highest number of proposals under the Pradhan Mantri Awas Yojana(Urban) . According to a report by the State Level Banker's Committee in Gujarat, under the Credit-Linked Subsidy Scheme (CLSS) there have been 4,352 disbursements already across the state. The list of statutory towns eligible for the CLSS include Kachchh, Banaskantha, Patan, Mahesana, Sabarkantha, Gandhinagar, Ahmedabad, Surendranagar, Rajkot, Jamnagar, Porbandar, Junagarh, Amreli, Bhavnagar, Anand, Kheda, Panchmahal, Dahod, Vadodara, Bharuch, The Dangs, Navsari, Valsad, Surat and Tapi. With job opportunities coming up in urban and semi-urban area the absorption rate is also expected to go up.