Why HNIs Are Investing in Land in Gujarat | Expert Real Estate Insights

In my 30+ years in the Indian real estate sector, I’ve witnessed many investment trends come and go. But one shift that stands out—especially in the past 5–7 years—is the growing interest of High-Net-Worth Individuals (HNIs) in land investment, particularly in Gujarat.

HNIs, both resident and non-resident Indians, are turning to land for long-term wealth creation, asset diversification, and strategic development opportunities. Gujarat, with its robust infrastructure, pro-investor policies, and high ease-of-doing-business ranking, has become a prime hotspot.

In this blog, I will break down:

Why HNIs prefer land over other real estate assets
Key regions in Gujarat attracting investment
The ROI potential of land
Legal and regulatory considerations
Future outlook

Why HNIs Are Now Choosing Land Over Flats or Commercial Spaces

1. Capital Appreciation Potential

Unlike apartments, land appreciates faster and more consistently, especially when located in urbanizing or industrial corridors. HNIs see this as an opportunity for higher returns without the burden of maintenance costs.

2. Asset Control and Flexibility

With land, investors get full ownership rights. They can lease, build, resell, or hold it indefinitely. This flexibility appeals to sophisticated investors looking to either develop their own projects or wait for the best exit timing.

3. Tax Efficiency

Land investment offers long-term capital gain benefits under Section 54F of the Income Tax Act, especially if held for over 2 years. Strategic planning can significantly reduce the tax burden.

4. Generational Wealth Building

HNIs often view land as a legacy asset, something that can be passed down to the next generation with fewer structural or depreciation issues than constructed properties.

5. Land Banking for Future Development

Savvy investors are buying land in developing zones like Dholera SIR, GIFT City, and the Ahmedabad-Gandhinagar belt. The idea is simple: Buy low now, develop or sell high later when urban infrastructure catches up.

Top Locations in Gujarat Where HNIs Are Investing in Land

1. GIFT City (Gandhinagar)

India’s first International Financial Services Centre (IFSC), GIFT City offers global-grade infrastructure, tax incentives, and rapid development. Residential and commercial land plots near GIFT City are in high demand.

2. Dholera SIR

Dubbed India’s first Greenfield Smart City, Dholera SIR is part of the Delhi-Mumbai Industrial Corridor (DMIC). HNIs are quietly acquiring land here for industrial, logistic, and residential projects.

3. Ahmedabad–Sanand–Changodar Belt

This region is the manufacturing and industrial nerve center of Gujarat. Proximity to major highways, SEZs, and industrial parks makes it a logistics and warehousing investment magnet.

4. Vadodara-Halol Express Corridor

The stretch between Vadodara and Halol is seeing increased real estate activity due to industrial growth, making peri-urban plots very attractive.

5. Surat’s Peripheral Zones

Known for its diamond and textile industries, Surat is growing outward. Land parcels in zones like Palsana, Bardoli, and Kamrej are seeing increased demand.

Return on Investment (ROI) – What Can HNIs Expect?

Location	Avg. Price Appreciation (Last 5 Years)	Estimated CAGR (Next 5 Years)
GIFT City	80–100%	12–15%
Dholera SIR	60–90%	10–14%
Ahmedabad–Sanand	50–70%	10–12%
Vadodara-Halol Belt	40–60%	8–10%
Surat Peripheral	35–55%	8–10%

Note: These figures are based on market observations, developer activity, and upcoming infrastructure.

Legal and Regulatory Considerations for HNIs

Due Diligence Checklist:

Title Search: Ensure the title is clear and free of encumbrances
Zoning Regulations: Verify land use type (agricultural, commercial, residential)
Conversion Requirements: Agricultural to NA (Non-Agricultural) conversion process
Encroachment Check: Get a ground-level site inspection done
Local Authority NOCs: Must for larger land parcels

HNIs usually work with real estate lawyers and local consultants to navigate these steps smoothly.

Land vs Other Real Estate Assets: What’s Better for HNIs?

Factor	Land Investment	Residential/Commercial Assets
Maintenance	Minimal	High
Liquidity	Medium (if well-located)	Higher
Flexibility	High	Limited
Capital Appreciation	High	Moderate
Income Generation	Low (unless developed)	High (via rental)
Risk	Medium	Low to Medium

Land wins on appreciation and flexibility, while built properties win on rental income.

The HNI Strategy: How the Ultra-Wealthy Are Doing It

Land Banking – Buy parcels near SEZs, highways, and smart cities.
Joint Ventures – Collaborate with developers to build luxury projects.
Diversified Land Portfolio – Industrial + residential + commercial plots.
NRIs Investing in Homeland – NRIs from the US, UK, and UAE are buying land in Gujarat to build holiday homes or future retirement villas.

Future Outlook: What Lies Ahead for Land Investment in Gujarat?

With the Bharatmala project, high-speed rail corridor, metro expansion, and increased foreign investment, Gujarat is set for massive growth.

Land investments made today will become golden assets of tomorrow.

Government backing, rapid urbanization, and industrial expansion mean that the land market in Gujarat is poised to outperform most other traditional real estate segments over the next decade.

Final Thoughts

HNIs are not just buying land—they’re strategizing wealth creation through land. With its policy support, strategic geography, and infrastructure development, Gujarat is no longer just a state to do business in—it’s a state to invest in.

If you’re an HNI—or aiming to become one—it might be time to look at land not just as a plot, but as a portal to future prosperity.