GIFT City liquor permit rules eased; Real estate developers say move to attract investments
GIFT City update: Gujarat government eases liquor norms in Fintech hub; Real estate sector sees it as key to boosting investments
The Gujarat government has eased its GIFT City, Gandhinagar liquor consumption policy. Under the revised policy, employees can apply directly to the government for temporary or group liquor permits, eliminating the need to go through their company’s recommendation officer.
Real estate developers have welcomed the move, stating that streamlining the permit process by reducing documentation will contribute to building a more vibrant ecosystem in GIFT City and attracting greater investment and professional talent.
According to an April 15 notification issued by the Gujarat government's home department, employees now do not need to approach their employer's recommendation officer. Instead, they can directly apply to the authorised officer of the government authority for a temporary permit or group permit for liquor consumption in GIFT City, Gujarat.
Also Read: GIFT City's Real Estate to Get a Boost with Budget 2025’s IFSC Incentives
What is GIFT City?
GIFT City stands for Gujarat International Finance Tec-City and is located along the Sabarmati River between Ahmedabad and Gandhinagar in Gujarat. It is spread across 880 acres. The development includes a special economic zone (SEZ) and a non-SEZ area. The SEZ houses financial institutions and banks, while the non-SEZ section features commercial office spaces and residential buildings.
Property consultants say approximately 35% of GIFT City is operational, and development is proposed in the remaining area.
What is GIFT City's liquor consumption policy?
The liquor consumption policy in GIFT City, Gujarat, holds significance given that the state has remained officially dry for over six decades, with the sale and consumption of alcohol considered a punishable offence.
In a notable shift, the Gujarat government introduced a dedicated liquor policy for GIFT City in 2023 to boost investment in the state’s flagship financial and technology hub. Under this policy, individuals employed within GIFT City and their official guests can consume alcohol at licensed hotels, restaurants, and clubs within the precinct.
However, alcohol can only be served in designated areas and strictly to those with liquor access or temporary permit.
The Gujarat government’s home department announced additional relaxations on April 15. As per the latest notification, the requirement for employers to issue recommendation letters for permit applications has been waived. Employees can now apply directly to government authorities and obtain a liquor permit valid for two years.
Relaxation in liquor policy in GIFT City a welcome move, says CREDAI chief
Shekhar Patel, managing director of Ahmedabad-based Ganesh Housing Corporation Ltd, who took charge as president (National) of real estate developers' apex body, CREDAI last week, welcomed the decision.
"The relaxation of liquor consumption in GIFT City has definitely helped in getting more companies on board. The liquor consumption policy is just one thing, and several other factors have helped in getting more investments into GIFT City," Patel said.
"One cannot quantify how much impact liquor consumption policy has made on getting investments into GIFT City, but things relating to the liquor consumption policy have definitely helped towards building an ecosystem," Patel said.
Viral Shah, a real estate developer and vice president of CREDAI Ahmedabad, said that relaxations to the liquor consumption policy have definitely helped attract investments and boost property prices in GIFT City.
"On property rates, there was around ₹500 per sq ft increase when the relaxation was announced in 2023. The month following the announcement, there was a rush for property purchases, increasing prices. But we cannot say that liquor consumption policy has helped boost real estate sales," said Shah.
“The liquor consumption policy has played a positive role in shaping the broader business ecosystem, leading to a definite uptick in both property values and investment,” Shah said.
Currently, companies like Morgan Stanley, JP Morgan, IBM, Oracle, Google, Infosys, and Life Insurance Corporation of India (LIC), among others, have a presence in GIFT City.
Regarding real estate developers, Bengaluru-based Sobha, Brigade Group, and Mumbai-based Hiranandani Group, along with several Gujarat-based firms such as Shivalik and Nila Spaces, have a presence in the area.
Also Read: Here’s why the real estate market in Gujarat’s GIFT City is high on the liquor consumption policy
Property rates in GIFT City
According to ANAROCK Research, land prices in GIFT City increased almost 110% between 2019 and Q1 2025, while on a yearly basis, there was a 21% jump. Before the COVID-19 pandemic (in 2019), land prices in the area were around ₹4,300 per sq ft, which increased to ₹7,500 per sq ft by Q1 2024's end and further to ₹9,050 per sq ft as of Q1 2025's end.
Residential rentals also jumped 56% between 2019 and Q1 2025 and 11% in the last year, from ₹25,000 per month in 2019 to ₹35,000 per month as of Q1 2024 end and now to ₹39,000 as of Q1 2025 end.
Residential capital values have risen by 100% in the last six years—from ₹4,700 per sq ft in 2019 to nearly ₹9,420 per sq ft by Q1 2025. In the corresponding period, at Q1 2024's end, the residential capital values stood at ₹8,200 per sq. ft., a 15% yearly jump.
According to local brokers, commercial office space lease rates range from ₹65-85 per sq ft in the SEZ area and ₹55-65 per sq ft in the non-SEZ area. The capital value of office spaces ranges from ₹7,000 to ₹10,000 per sq ft.
In the last few days, the GIFT Nifty has also surged upwards, reflecting positive sentiment in the Indian equity markets.
