Gift City has seen a record bid of Rs 3,870 per sq feet (plus 6% stamp duty) for a residential project bid on Tuesday. According to sources, the developer will pay around Rs 450 crore to Gift City as development rights. This project will come up on a 9,400 sq metres plot.
Around 14 developers had bid for the project and a lesser known Yogi Construction Company won the bid while Nila Spaces Ltd stood second with a bid of Rs 3,636 per sq feet. Recently, a multi-level car parking project had received a bid of Rs 2,800 per sq feet which will have a commercial space along with parking.
According to sources, this will be the biggest residential project so far in the Gift City. The plot is situated in the domestic zone of the Gift City and the bids were invited for around 11.60 lakh sq feet development rights. “Base price of development rights in Gift City is around Rs 1,600 per sq feet and this project has seen the highest bid of Rs 3,870 per sq feet, which is the highest so far in Gift City for any project,” said a source privy to the development.
According to sources, around 14 real estate companies had bid for the project and of those, two were disqualified for different reasons. Total five bidders quoted above Rs 3,000 per sq feet.
“This shows a growing interest for Gift City among developers. Gift City has a world-class infrastructure in place and it is designed as an international smart city. International Financial Services Centre (IFSC) has witnessed interest from global banks and funds and foreign universities. Domestic zone of the Gift City has also seen the arrival of global tech giants like Google. Around 20,000 employees are already working in Gift City and with new companies coming in, the number will increase soon,” said a source.
However, real estate experts believe the bid price is much higher than most developers thought because apart from development rights, construction cost will also be higher for a luxurious residential project. “This will result in a much higher selling price too, and it will be interesting to see the viability of the project,” said a developer.