Planning to Invest in a PG or Apartment in Gujarat? New Draft Rules Could Change Future Projects
AHMEDABAD | August 5, 2026: If you're planning to buy an apartment, develop a residential project or invest in a paying guest (PG) accommodation in Gujarat, the state's proposed planning reforms could significantly impact future developments. The Gujarat government has released draft amendments to its Comprehensive General Development Control Regulations (CGDCR) that would prohibit PG facilities inside new apartment projects and commercial complexes, while introducing separate planning rules for PG accommodations and preschools.
The move aims to remove long-standing confusion over approvals and bring greater clarity to urban development regulations.
What are the proposed changes?
The Urban Development and Urban Housing Department has invited public objections and suggestions on the draft amendments until October 3.
Under the proposed rules:
- New PG facilities will not be allowed inside apartment schemes.
- PG accommodations will also not be permitted in commercial buildings.
- Future PG projects will be approved only as standalone developments under the DW3 (Dwelling-3) category.
The government says the change will help eliminate regulatory ambiguity that has led to disputes and enforcement actions in recent years.
New rules for preschools
The draft amendments also introduce a separate Education-1 category for preschools.
According to the proposal:
- Preschools can be developed on plots ranging from 200 sq. m. to 1,000 sq. m.
- Buildings can have a maximum height of 12 metres.
- Preschools will be allowed within bungalow schemes but not inside residential apartment complexes.
The government believes separate planning norms will simplify approvals and reduce future legal disputes.
Why is the government making these changes?
Officials say the existing CGDCR 2017 never formally defined PG accommodations.
As a result, approvals, enforcement actions and legal disputes were handled under rules originally meant for hostels and boarding houses.
In Ahmedabad, the issue came into focus after civic authorities launched action against hundreds of PG operators over alleged regulatory violations, leading to notices and sealing drives.
The proposed amendments are intended to establish a clear legal framework for future projects.
What does this mean for homebuyers and developers?
For apartment buyers, the proposed rules could help preserve the residential character of future housing societies by restricting commercial-style PG operations within apartment complexes.
For developers and investors, future PG projects may require dedicated standalone developments instead of being integrated into mixed-use residential projects.
Anyone planning to invest in PG accommodation should closely monitor the final notification before making investment decisions.
Public feedback invited
The Gujarat government has invited citizens, developers, housing societies and other stakeholders to submit objections and suggestions before October 3, 2026.
The final amendments are expected to become part of the updated planning framework ahead of Ahmedabad's Development Plan 2041.
Why this matters
As cities continue to grow, clearer development regulations can reduce disputes between residents, developers and civic authorities. The proposed rules are expected to bring greater certainty for future residential projects while ensuring that PG accommodations and educational facilities are developed under clearly defined planning norms.