Sabarmati riverfront kicks off

The Sabarmati Riverfront development project, which aims to transform around 38 kilometres of riverbanks from Ahmedabad to Gandhinagar across seven phases, has begun monetising its first phase, covering around 11 kilometres on either side of the river.
The Sabarmati Riverfront Development Corporation Ltd (SRFDCL), which is implementing the riverfront project, has auctioned off its first prime land parcel for ₹156.13 crore to Mumbai-based E City Ltd, marking the start of its first-phase land monetisation plan targeting ₹4,000-5000 crore, said officials close to the development.
The riverfront was one of the pet projects of Prime Minister Narendra Modi when he was the chief minister of Gujarat.
E City Ltd will develop a 60,050 sq m mixed use commercial complex featuring upscale offices, co-working spaces, restaurants, retail stores, lounges and a food court with a height clearance of about 17 storey building, said officials.
The winning bid has set a new benchmark for Ahmedabad’s real estate market, with a land valuation of ₹3,52,941 per square metre – one of the highest rates seen in the city, they added.
A second auction on the eastern bank, where Rising Hotels from Mumbai was the lone qualified bidder, may see re-bidding, they added.
The project has already attracted Dubai based realty group Sobha Group LLC, who have committed ₹1,000 crore for the third phase of riverfront development. The SRFDCL, a special purpose vehicle floated by Ahmedabad Municipal Corporation for the riverfront project, plans to continue monetising its remaining first-phase land parcels along the riverfront.
“We have successfully completed bidding for our first land parcel and a final approval is pending before the board. For the first phase we aim to lease about 16-17 million square feet of built-up area on the riverfront. We came up with a special land disposal policy in July that has helped speed up the auction process,” said M Thennarasan, commissioner of AMC.
So far SRFDCL has invested close to ₹1,150 crore in the first phase and ₹1,250 crore for the second phase, which is presently under development.
The Riverfront development project has transformed Ahmedabad by revitalising its urban core, said Thennarasan.
This ambitious initiative has created a vibrant ecosystem along the clean waters of the Sabarmati River, offering spaces for work, living, recreation, and entertainment. A distinctive feature is its double-level promenade that runs continuously along both riverbanks, allowing visitors to walk right beside the serene waters.
The 11.5-km-long promenades built in the first phase serves pedestrians and cyclists, and provides access to the water, and also hosts a variety of public features at the city level. The riverfront project area has a green cover having around 5 lakh trees along with a biodiversity park. Miyawaki plantation methodology has been used to increase the green cover substantially.
The development in the project provides a road network to the city by reducing the traffic problems. The project roads run parallel to the river on both the banks and provide continuous access to the Riverfront development.
The proceeds from the sale of land created by the project are expected to cover the full cost of the project, including the cost of interest paid on construction, period loans and repayment of equity investments, said another official who spoke on condition of anonymity. The sale of a portion of reclaimed land (not more than 14% of reclaimed land, though allowed to sell 20 per cent) is envisaged to assist the financial viability of the project so that the public funds are not stretched.
The Sabarmati Riverfront Project is designed to be financially self-sustaining, requiring no government funding. Most of the project area is dedicated to public spaces including promenades, parks, gardens, event venues, sports facilities, and parking. A smaller portion is allocated for commercial development to generate revenue. These commercial parcels will feature high-end developments including business centres, hotels, retail spaces, mixed-use buildings, and entertainment facilities, including theme parks, creating a premier destination in Ahmedabad.
The Sabarmati Riverfront Land Disposal Policy 2024, which came into effect in July is on the lines of the Gujarat International Finance Tec-City (GIFT City) model. Under this new policy, the land on the riverfront has been divided into seven value zones for the first phase.
The developers will be able to purchase land development rights in these zones, and the value of the land will be evaluated according to the building’s footprint on respective plots. The land can also be leased on short-term or long-term basis or be given on a leave and licence basis. The base price for land will be determined by SRFDCL and will be based on a number of factors, including the valuation zone, the purpose of the lease and market prices. The policy also includes a revenue sharing model, and developers will have the option of purchasing development rights instead of buying the land outright.
The second phase of the riverfront project will add 5.8 kms to the existing 11.5 kms stretch on the riverfront east and 5.2 kms to the existing 11.5 kms stretch on the Riverfront West of Phase I ending up to Indira Bridge. To maintain the level of water for the entire stretch, a Barrage cum Bridge is being constructed, which would also store the water for 10-15 days for the city of Ahmedabad. The entire development of the project is towards urban regeneration and environmental improvement, said an official. The project will improve airport connectivity and includes plans for sports facilities aimed at supporting Ahmedabad’s potential bid to host the 2036 Olympics, said people familiar with the matter.
The project’s third phase will be developed by Sobha Group, followed by the irrigation department for the fourth phase. GIFT City will develop the fifth phase, while the Gandhinagar civic body will handle the sixth and seventh phases, extending up to Sun Sarovar in Gandhinagar, the people said.