Around 1,30,650 units across different budget segments have been launched in Ahmedabad since 2014 till H1 2019
Of the over one lakh houses launched in Ahmedabad in the last five years, almost half are in the affordable range (priced within Rs 40 lakh), says ANAROCK Research.
Among the top realty markets where both demand and supply peaked during the last five years include Nava Naroda, Chandkheda, SG Highway, Nikol, Bopal, Vatva, Gota, Vastral, Narolgam and New Maninagar, it said.
Ahmedabad is also the most expensive housing markets. The top five luxury markets in Ahmedabad in the primary market are Bodakdev, Ambli, Satellite, Prahlad Nagar and Ambavadi, with prices ranging from Rs 6,000 to Rs 7,000 per sq ft.
“Around 1,30,650 units across different budget segments have been launched in the city since 2014 till H1 2019. Of this, nearly 52 percent (around 67,400 units) were in the affordable segment, followed by 37,400 units in the mid-segment (Rs 40 lakh to Rs 80 lakh). Luxury and ultra-luxury units in this major Tier II city were limited at 14 percent and 11 percent, respectively,” says Santhosh Kumar, Vice-Chairman, ANAROCK Property Consultants.
Rapid industrialisation, proposed infrastructure development, strong connectivity, GIFT city (one of the first Smart Cities in the country), expressways, etc are major factors spearheading realty growth in Ahmedabad over the last few years, particularly in the affordable housing segment.
The ANAROCK’s Consumer Sentiment Survey for H1 2019 stated that Tier II and III cities were the first preference for nearly 26 percent property seekers looking to invest in realty in 2019, with Ahmedabad topping the list. Low property prices along with improved infrastructure in the city in fact attracted over 11 percent NRI investors.
“The city saw overall absorption of nearly 1.15 lakh units between 2014 till the first half of 2019,” says Kumar.
“Before demonetisation, housing sales in 2015 increased by 24 percent to cross 25,400 units mark from the previous year’s 20,480 units. However, there was drastic drop in housing sales during the DeMo quarter and henceforth unit sales each year have been hovering around the 20,000 mark. In the first half of 2019, absorption has remained tepid at about 9,070 units – falling 16 percent since the first half of 2018,” he said.
As far as unsold inventory is concerned, of the total 48,500 unsold units as on first half of 2019, over 44 percent is in the affordable segment, followed by 29 percent in the mid-segment. Merely 6,800 units unsold units are in the luxury segment, and approximately 6,090 units in the ultra-luxury segment.The average prices of residential properties in Ahmedabad is around Rs 2,870 per sq ft in the first half of 2019. Trends suggest that prices have remained more or less stagnant over the last two years because housing sales have not seen a major increase and builders are wary of hiking prices in the back of relatively lower demand in comparison to earlier peak levels of 2014. If we compare to the second quarter of 2015, average property prices in the city have seen a mere five percent rise in the second quarter of 2019.