Rs 500cr Worth of Properties Sold In 5 Days in GIFT City After Relaxation of Prohibition Norms

The decision of the state government — to ease prohibition norms in GIFT City — has led to finalisation of property deals worth Rs 500 crore in five days. According to sources, such a boost to the property market in Gujarat International Finance Tech City has not been seen in the last 11 years.

Approximately 300 units of commercial and residential properties have been sold in the last five days. Since the relaxation of liquor restrictions in GIFT City, property inquiries have surged by an astonishing 500%. Last week’s announcement of a conditional relaxation of the liquor ban for permanent staff of global and Indian companies, currently operating or planning to operate in GIFT City, and their visiting guests, has been a shot in the arm for builders.

Representations from companies within GIFT City, expressing a willingness to invest, played a crucial role in pushing for the easing of prohibition laws. The property market, which had been stagnant for two years, finally came alive after the government’s decisive move last week.

Over the past decade, significant efforts have been made in transforming GIFT City into a modern finance tech hub. Legislative and taxation reforms, coupled with global marketing initiatives in the last five years, have attracted over 470 companies to operate in 18 different towers within Gift City. These include global banking, funds, IT, fintech, corporate, exchanges, and trading companies. The International Financial Services Authority has sold development rights for a 2.2 crore square feet area, with ongoing construction of 30 additional towers and plans for 14 more.

However, the boom in land prices in villages around GIFT City has not been received well by landowners, particularly in light of the proposed 48% deduction in phase 2 planning—a provision absent in phase 1. Landowners, facing substantial losses, plan to voice their concerns to the government.

Meanwhile, the GIFT City outpost, previously serving as a police station, is set to undergo a transformation into a full-sized police station to handle increased activity following the wine and dine concessions. The prohibition department will issue permits for liquor consumption, while the police station will monitor law and order, including potential violations of the prohibition Act.