Comparing Ahmedabad, Vadodara, Halol, Surat

Located on the west of India, with the longest coastline in the country (over 1600kms) Gujarat is one of the most developed states in the country. The state has been proactive in developing several huge infrastructural projects via the PPP (Public Private Partnership) model.

Some notable developments in the state that boost real-estate include the DMIC (Delhi-Mumbai Industrial Corridor), metro rail linking Gandhinagar and Ahmedabad, PCPIR (Dahej Petrochemical & Petroleum Investment Region), BRTS (Bus Rapid Transportation System) for four cities in the state – Vadodara, Surat, Rajkot, and Ahmedabad.

With so many developments happening all around the city, one question runs high in the mind of investors, “Which city in Gujarat is ideal for real-estate investments?” Here, in this guide, we compare the four hot real-estate investment destinations in Gujarat – Ahmedabad, Vadodara, Halol, and Surat, listing their pros, average property prices, and more.


The commercial capital of Gujarat, Ahmedabad enjoys excellent connectivity to the rest of the state and the rest of the country via roads, rail, and air. The city has a big international airport that serves as the gateway to the rest of the state.

Ahmedabad is earmarked as a smart city, and you can expect the city to see a huge boost in infrastructure and amenities in the next couple of years. Already, a few smart city projects are underway like the:

  • GIFT (Gujarat International Finance Tec-City) a central business district lying between Ahmedabad and Gandhinagar, with integrated townships and world-class infrastructure. It’s at a distance of 12kms from the airport.

  • Sardar Patel Outer Ring Road – This road is already operational and reduces travel time between the peripheral localities of the city and the centre.

  • Metro Rail Project – Once this project is completed, East Ahmedabad will witness a huge surge in growth. The metro rail will connect the east of the city with the west, thereby reducing travel time significantly.

Real Estate Report Card 2019:

As per data supplied by Makaan, though Ahmedabad has seen infrastructural growth in the last year, property prices have remained stagnant. In some areas, prices have dropped by 1.69%. However, rental yield is healthy at 3.49%. On average, budget-level apartments in Ahmedabad cost between 43 – 52 lakhs and luxury projects start from 90 – 99 lakhs.

Ahmedabad has seen a whopping 72% decline in new launches and inventory overhang of 46 months.

Q4 FY’18
Q4 FY’19

Q4 FY’18
Q4 FY’19


Vadodara, formerly known as Baroda, is right now one of the hottest investment destinations in Gujarat. The commercial capital of the state Vadodara is seeing investors from across the country and is quite popular among NRIs too.

Vadodara enjoys seamless connectivity with the rest of the state, and the Ahmedabad-Vadodara highway is considered as one of the best highways in India. It’s less than six hours from Mumbai, the financial capital of India, making it a great choice for corporations looking to set up a second office.

Vadodara enjoys special recognition from both the state and central government (the prime minister is from here) and is part of the Smart City plan. What many don’t know is that Vadodara has a booming IT/ITeS sector. With the growth in the IT sector, there is a huge demand for high-quality, affordable housing units, and real-estate experts predict a huge increase in rental yields in the city, in the next few years.

Real Estate Report Card 2019

The average price of properties in Vadodara is quite stable and is currently at 59.76 lakhs (source: Makaan), and the property market in the city has shown an upward trend in the last six months.


Rightly named as an investor’s paradise, Halol is a recent entrant in the real-estate investment hubs in Gujarat. Situated 40kms away from Vadodara, Godhra, and Bodeli, Halol is well-connected. It’s close to NH-8 and SH-87.

The Champaner Pavagadh Archaeological Park is just 7kms away from Halol. The world-famous site is Gujarat’s only World Heritage site and has huge tourism potential.

One of the biggest draws of Halol is that its part of the ambitious DMIC. The DMIC corridor is just 35kms away from Halol’s industrial area. It is an industrial hub and is home to several reputed companies like Sun Pharmaceuticals, Hero Motocorp, Polycab, MG Motors, etc., that offer employment to thousands and thousands of local residents.

Real Estate Report Card 2019:

Halol has seen a huge demand for high-quality, affordable housing units in recent years, thanks to the industrial developments of the area. Today, you can pick up good, ready to move in 2BHK apartments for just 22lakhs to 35lakhs in Halol at properties like Ashiana Navrang.

What more, with CLSS, if you are a first-time home buyer, your EMI is further reduced, as these properties qualify for the CLSS scheme. If you are a seasoned investor, then you would be happy to know that Halol has high rental yields, and you can easily get upwards of Rs. 9500 per month for a modest 2BHK apartment.


Surat has traditionally been known for two things – diamonds and textiles. Today, though these industries still reign, the city has transformed itself into a modern metropolis. Thanks to its thriving small, medium, and large scale industries, Surat enjoys high-standards of living and the average household income in the city is higher than most metros.

The city has seen several infrastructural developments in recent years. Here are a few notable highlights:

  • The central government has approved the construction of two metro corridors in Surat. The two approved metro links will connect Bhesan to Saroli (18km stretch with 18 metro stations) and Sarthana to Dream City (21.6km stretch with 20 metro stations).

  • Surat Navsari Industrial area is a prime choice for global investors. Currently, this area has over 23 large and medium scale industries across sectors like plastic, engineering, textile, marine, floriculture, and agriculture.

  • Development of several SEZs. The government of Gujarat has proposed the development of Special Economic Zones in the city to provide small-scale manufacturers with the right incentives.

Real Estate Report Card 2019

Surat has an active property market that attracts not only local investors but also NRI investors. This means the average property price is higher than other destinations on this list. The average price of properties in Surat is Rs. 1.37 crores (source: Makaan).

Nearly 45 localities in Surat have seen an upward rise in property prices, while 19 localities have shown a downward trend. So, it’s key that you choose the right localities in Surat if you are looking for price appreciation and higher rental incomes.

Rental Yield Comparison

Rental yield is calculated by taking the capital value of the residential unit, the average monthly rental and the costs involved. It is the average annual rental income divided by the capital value of the property. This gives the rate of return earned (% of return) by renting out the property.

The average annual rental income is obtained by subtracting the costs involved by the total rental revenue earned in 1 year.

Rental yield = (Annual rental income – Costs)/Cost of property

The following are the rental yields of the major cities:

Rental Yield (%) of 2BHK
Rental Yield (%) of 3BHK

Which one is better?

There’s a saying often repeated by real-estate investors, “If everyone knows about it, it’s too late.” The real trick of identifying a profitable real-estate investment is to look at emerging markets like Vadodara and Halol, where property prices haven’t saturated yet, and there is a huge scope for growth. Consider all the factors, and make the right choices.

Category: Investment,

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About The Author

Ashiana, Ashiana Housing build homes. Homes surrounded by vast green spaces and fresh breeze. Homes cocooned in secured gated complexes. Homes where futures are forged and there are opportunities to grow. And Homes in environments brimming with healthy activity, trust and respect. At heart, we build communities with care.

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