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After more than a decade of attempts, the Sabarmati Riverfront Development Corporation Ltd (SRFDCL) successfully auctioned development rights for a prime plot on the riverfront, raising INR 156.13 crore. A Mumbai-based real estate company won the bid, planning a mixed-use commercial building featuring offices, co-working spaces, and retail options. This landmark deal establishes a new land valuation benchmark in Ahmedabad. The plot will be leased for 99 years at a minimal rate, with construction expected to be completed within four years.
After more than a decade of unsuccessful attempts, the Sabarmati Riverfront Development Corporation Ltd (SRFDCL) has finally made a breakthrough. The corporation auctioned the development rights for a prime plot on the western side of the riverfront, securing an impressive sum of INR 156.13 crore. Advertisement
The winning bid came from a prominent real estate company based in Mumbai, which will transform the site into a mixed-use commercial building covering 60,050 square metres. This new development will feature upscale offices, co-working spaces, restaurants, retail shops, lounges, and a food court.
A senior official from SRFDCL shared with *The Times of India* that the winning bid for the development rights of the Vallabh Sadan plot was submitted by the Mumbai-based firm, offering INR 26,000 per square metre. This amount surpasses the base price of INR 23,676 per square metre, highlighting the increasing demand for prime real estate in the area.
The SRFDCL official clarified that they are not selling the land itself but the development rights for the plot. In a press release, SRFDCL noted that this bid establishes a new benchmark, with a land rate of INR 3,52,941 per square metre, representing one of the highest land valuations in Ahmedabad. This auction follows the state government's approval of the Sabarmati Riverfront Land Disposal Policy in July 2024, which opened the door for selling development rights on 17 plots, covering a total area of 1.49 lakh square metres.
The SRFDCL official mentioned that the successful bidder will soon receive a letter of acceptance and is required to complete construction within four years. Additionally, this mixed-use development is expected to reach a height of 66.13 metres, further enhancing the skyline of the area. The official highlighted that this is the first time a single plot has been approved for commercial mixed-use development. He also mentioned that the land will be leased for 99 years at a remarkably low annual rate of just INR 10 per square metre.
However, the successful bidding process faced some challenges. Initially, SRFDCL had issued tenders for two plots one located near Vallabh Sadan on the western side and another near the Lemon Tree Hotel on the eastern side. During the pre-bid meeting, private companies raised concerns regarding parking and experience criteria, which led the SRFDCL to make amendments to the tender. While the Vallabh Sadan plot attracted bids from two companies, the eastern plot received only one bid, prompting authorities to restart the bidding process for that site.
The successful auction of development rights for the Sabarmati Riverfront marks a significant milestone in Ahmedabad's urban development. With the city's growing demand for commercial spaces, this project not only sets a new standard for land valuations but also contributes to the vibrant economy of the region. As construction begins on the mixed-use facility, it promises to enhance the riverfront area, offering diverse options for businesses and visitors alike, ultimately benefiting the local community.
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