Redevelopment Projects Transform Gujarat's Real Estate Market
Gujarat's real estate sector is witnessing a quiet but decisive transformation as redevelopment and joint development projects gain rapid momentum across the state. This shift is primarily driven by soaring land prices and evolving business models that prioritize partnership over outright land purchases.
Official data reveals a sharp rise in registered development agreements, signaling a growing trend of builders and landowners opting for partnership-led growth. In 2024, a total of 777 redevelopment and joint development agreements were registered across Gujarat, generating over Rs 55 crore in stamp duty revenue for the state government. The pace has quickened further in 2025, with 983 agreements already registered by November 30, generating more than Rs 59 crore in stamp duty.
Ahmedabad is leading this transformation. The city recorded 116 development agreements in 2024, contributing Rs 23.64 crore in stamp duty. In 2025 alone, 119 agreements have already been registered, with stamp duty collections rising to Rs 26.60 crore. Real estate experts note that a significant number of these agreements in Ahmedabad are linked to the redevelopment of existing housing societies.
Industry players attribute this trend largely to escalating land costs. Instead of buying land at premium rates, developers are increasingly entering into joint development arrangements with landowners, sharing project risks and rewards. For landowners, this model offers significantly better returns than conventional land sales.
"Redevelopment projects are increasing in Ahmedabad because there is much more clarity today—for both buyers and developers," said Tejas Joshi, president of CREDAI Gujarat. He added that targeted incentives, such as lower paid FSI for redevelopment projects, could further accelerate the trend and dramatically alter city skylines. "Landowners now want to capitalize on their assets by partnering with developers, which also creates long-term business opportunities for the next generation," Joshi explained.
Developers on the ground echo this sentiment. Taral Shah, a city-based developer, said joint development and joint venture models are becoming the preferred route, especially in high-value areas. "Landowners may receive money slightly later, but they earn 20–25% more compared to a direct land deal. In premium locations, their share from project sales is substantially higher," he explained.
From a legal standpoint, redevelopment also offers clarity. Advocate Ravi Shah noted that societies undergoing redevelopment typically sign development agreements that attract a stamp duty of 3.5% and a registration fee of 1%, calculated on the jantri value of land and construction.
TABLE: TRANSFORMING URBAN SKYLINES City | Registration (2024) | Stamp Duty (Rs Cr) | Registration (2025) | Stamp Duty (Rs Cr) --- | --- | --- | --- | --- Ahmedabad | 116 | 23.64 | 119 | 26.60 Jamnagar | 317 | 0.49 | 512 | 1.10 Surat | 22 | 14.34 | 18 | 8.56 Rajkot | 129 | 1.63 | 88 | 0.82 Vadodara | 53 | 7.59 | 35 | 6.75 Gandhinagar | 28 | 1.14 | 21 | 5.91 Total | 777 | 55.07 | 983 | 59.07 Source: Gujarat Government
