Idea of GIFT City is indeed a creative experiment.
I have been following this idea for roughly about two years, over these years I see changes emerging at rate of roughly 1 - 5% of complete master plan for the city.
What is interesting to note is that speed at which China builds cities, is in line with the speed of debt pool extension it allows corporate sector of construction industry. The construction industry of China has been a fueling source of gross product in its local economy, which allowed financial sector to continue making loans. This has lead to creation of "Ghost Cities" in the process. There are some very good lessons in growth story of China.
On the other hand comparing to China, India's economy struggles with basics. Where a population is struggling with rise in Cost of Living without any significant rise in Income. Though India too has Construction boom especially in large Metros, where large unsold inventories have piled up in a state of excess supply and excessive demand. Demand is of Affordable homes and Supply is of unaffordable ones.
At such a time in global economy, where slowdown is palpable Globally, future of GIFT City seems grim. Though fundamentals of the Project remain strong. Where on one side we are witnessing excessive supply of expensive homes with slow demand has got liquidity locked down. On the other hand Projects such as GIFT City are growing at a Slow Pace.
Currently the Project has 2 commercial buildings completed in Sector 17, Corporate Park North, with 1 residential building under construction in Sector 16, Residential Park North and 1 residential building under construction in Sector 15, Residential Park South.
Opportunities to invest are plenty, but liquidity globally remains tied down with global slowdown. Investors seek opportunities where they can maximize their Income at the same time have their Investments safe. Considering real growth of real estate sector is driven by individual consumers who are subscribing Home Loans, which again remains dependent on High Paying Jobs.
Thus so far, in GIFT City there are commercial space available as well as soon residential spaces shall also become available in 6 months to year. The question remains is that can all these offices be leased? Will this allow migration of Talent to Work, Live and finally Own a House here? Or will this all remain as GIFT of India to Mother Earth as another Ghost Story.
