Shilp Group acquires record-breaking development rights in GIFT City

01 Jun 2023

GIFT City, an emerging global financial hub, has garnered significant attention from developers, with Ahmedabad-based Shilp Group recently acquiring the most expensive development rights through an auction.

According to sources, Shilp Group, which has already announced three projects in GIFT City, secured 500,000 square feet of development rights on a new land parcel in the SEZ area at a rate of Rs 1,821 per square foot, setting a record for the highest-priced development rights. Previously, Venus Group had acquired development rights at approximately Rs 1,800 per square foot.

Traditionally, GIFT City allocated development rights at Rs 1,000 per square foot for residential projects and Rs 1,350 per square foot for commercial projects. However, over the past year, the base price for both residential and commercial developments was increased to Rs 1,600 per square foot. Developers then participate in bidding processes. Despite the challenges posed by the pandemic, GIFT City has successfully allocated over 10 million square feet of development rights.

Covering an expansive 886 acres of land with a built-up area of 62 million square feet, GIFT City offers a wide range of facilities, including office spaces, residential apartments, schools, hospitals, hotels, clubs, and retail and recreational amenities. The development comprises a multi-service Special Economic Zone (SEZ) and a domestic area. GIFT City positions itself as a formidable competitor to global financial hubs like Dubai, Hong Kong, and Singapore, with numerous foreign banks and financial institutions already establishing a presence.

Confirming the deal, Yash Brahmbhatt, the founder of Shilp Group, stated, "Considering GIFT City's emergence as a global financial hub, we have decided to embark on another project in the GIFT SEZ. Our new project will span 500,000 square feet with an investment of Rs 4 billion, bringing our total development rights in GIFT City to 2.45 million square feet. We have already planned three projects in GIFT City, including a residential project of 710,000 square feet in the SEZ area, currently under construction. Additionally, a commercial project of 710,000 square feet is awaiting permissions. We have also acquired 500,000 square feet of development rights for another project in the SEZ area, and this latest acquisition will mark our second commercial project in the SEZ."

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