Government fast-tracks execution of bullet train project
Expediting of the metro rail construction and land acquisition process for the bullet train project promised a transformation in Ahmedabad’s realty fortunes quicker than anticipated.
Infrastructure at Ranip receives a shot in the arm
Ranip and New Ranip areas in Ahmedabad are anticipated to reap the returns of improved physical infrastructure. The inauguration of the much-anticipated GST railway station crossing has brought a sigh of relief amongst frequent travellers. Improved connectivity is also expected to induce increased interest of homebuyers in the future.
State budget focusses on development of road and urban infrastructure
The State government allocated a lion’s share of budget to the construction of flyovers and bridges, reduction of landfill sites using bio-mining, streamlining of commutation network and acceleration of the smart city projects in Jan-Mar 2018. The special focus on mitigating traffic woes in Ahmedabad has lent hope and cheer to the landscape in the successive quarter.
RERA-induced sluggishness works in favour of Ahmedabad’s realty
Anticipation of a price cut resulting from the prevailing market lethargy boosted consumer interest. Although actual home values remained stable, the realty market reported increased traction from end-users and investors.
After a bout of stagnancy in Jan-Mar 2018, Ahmedabad’s realty market stepped on the road to recovery in Apr-Jun 2018. An inventory overhang of 26,000 units, majorly in the price bracket of Rs 60 lakh and above, led to unchanged capital values in Q1 2018. Sales remained muted in anticipation of price-competitive, fresh inventory.
The current quarter saw improvement in sales volume despite developers restricting new launches. The increased absorption of the existing inventory is a result of buoying consumer sentiment on the back of availability of affordable homes and gradually improving transport infrastructure, driving price points north, albeit by an insignificant margin.
Office space leasing marked an increase, courtesy availability of quality inventory at competitive rates. Growth in the commercial sector makes soothsayers predict a brighter residential story in the long run.
Governmental endeavours towards overhauling the city’s urban infrastructure and connectivity via new flyovers in Naroda and Patia, and the 45-km Sarkhej-Gandhinagar Highway have the potential to leave a positive imprint on the realty market.
Further, the metro rail and bullet train projects will play a significant role in transforming the city’s liveability index in the long run. All in all, sustainable growth in Ahmedabad’s residential market will be determined by the new infrastructure overhauls along with fresh supply of homes in the affordable segment.
Subsequent to a sluggish Jan-Mar 2018, residential sales and price points in Ahmedabad posted an uptrend in Apr-Jun 2018, notwithstanding by an insignificant margin. While the implementation of RERA and GST put the realty market on the backburner temporarily, the dormancy induced by policy changes motivated fence-sitters to take a decisive stance before prices move north. At present, the landscape seems poised for growth riding the wave of infrastructure enhancements, availability of affordable housing and office spaces.
Average weighted home values in Ahmedabad inched up marginally in Apr-Jun 2018, as compared to Jan-Mar 2018. Nearly 60 percent of the tracked localities reported an uptrend on the capital charts.
Almost all the localities surrounding SG Highway clocked a growth in home values. Science City emerged as the frontrunner with a three percent rise in property rates, QoQ. A prospering commercial sector and high demand for luxury homes worked in favour of the locality.
Bopal and South Bopal recorded a positive price movement owing to the availability of larger configurations such as 3BHK and 4BHK units, within a competitive price range.
South Bopal, in particular, boasts of sturdy civic infrastructure, making it a sought-after destination among the tenant community. This, in turn, magnetised investors looking to earn rental income and also propelled ‘ask’ rates to the tune of eight percent in Apr-Jun 2018, vis-à-vis the June ending quarter in 2017.
Home values in Motera continued to tread the growth trajectory for the second consecutive quarter in Apr-Jun 2018. While connectivity facilitated by Visat-Gandhinagar Highway is quoted as a primary growth driver for the three percent surge in capital rates, the proposed metro station along the Ahmedabad-Gandhinagar corridor also catalysed residential demand.
Vasna in West Ahmedabad held the baton of progressive rental charts in Apr-Jun 2018, clocking a massive surge of nine percent, YoY. Availability of newly-constructed projects at the lowest rents in the zone, and proximity to industrial estates under Gujarat Industrial Development Corporation (GIDC) drove rental rates.
The localities such as Vejalpur, Makarba, Paldi and South Bopal recorded a rental growth of eight percent, each, YoY. Competitive rental inventory gave a fillip to the ‘ask’ rates.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.